N.J. Admin. Code § 10:90-3.9

Current through Register Vol. 56, No. 9, May 6, 2024

Section 10:90-3.9 - Income-WFNJ TANF/GA

(a) Income is either countable or exempt. The provisions pertaining to exempt income may be found at 10:90-3.19.

(b) Income refers to earned or unearned and means, but is not limited to, child support, commissions, salaries, self-employed earnings, and spousal support payments, interest and dividend earnings, wages, receipts, unemployment compensation, any legal or equitable interest or entitlement owed that was acquired by a cause of action, suit, claim or counterclaim, insurance benefits, temporary disability claims, estate income, trusts, Federal income tax refunds, state income tax refunds, homestead rebates, inheritances, lottery prizes, casino and racetrack winnings, annuities, retirement benefits, RSDI, veterans' benefits, union benefits, or other sources that may be construed or defined as income.

(c) Earned income refers to gross income received by an individual through the receipt of wages, tips, salaries or commissions or receipt of income from self-employment. It includes earnings over a period of time for which settlement is made in one payment, for example, as in the sale of farm crops.

1. Earnings payable under the terms of a renewable contract, for example, earnings of school personnel, are to be averaged over a 12-month period.

(d) With respect to self-employment, the term "earned income" means the total profit from a business enterprise (such as farming) resulting from a comparison of the gross receipts with the business expenses. Business expenses are those costs directly related to producing the goods or services and without which, the goods or services could not be produced.

1. Allowable deductions (expenses) for self-employment income for WFNJ recipients include the identifiable costs of labor, stock, seed, fertilizer, raw material, payments on the principal and interest of the purchase price of income-producing real estate and capital assets, equipment, machinery and other durable goods, insurance premiums and taxes paid on an income-producing property.

2. Costs which are not allowable deductions in calculating self-employment income include net losses from earlier periods, personal expenses such as entertainment and travel to and from work, money set aside for retirement and taxes on retirement funds, depreciation, and Federal, State, and local income taxes.

3. Net losses incurred by self-employed farmers who have earnings or anticipated annual gross earnings of $ 1,000 or more from the farming enterprise, must be prorated and offset against other countable income in the following order:

i. First against other self-employment income; and

ii. Second against the total amount of earned or unearned income deduction after the earned income deduction has been applied.

4. Persons who are self-employed shall be required to submit evidence of business receipts and expenditures as the basis for a sound estimate of earned income. A reliable, accurate accounting system or the method utilized in reporting to the Internal Revenue Service shall be acceptable for determining net income.

5. Assistance shall not be provided to subsidize a failing business.

i. A business which is already established (that is, in operation for at least 24 months) and which shows only marginal profit, either constant or intermittent, shall be considered to be failing if the profit, averaged over the preceding 12 months, is less than the State minimum wage multiplied by 35 hours per week.

ii. For a new business, a period not to exceed 12 months from the start of the new business shall be considered adequate to determine its potential for self-support. In situations where, in the judgment of the county or municipal agency, additional time would enable the business to show a profit, the period may be extended for up to 12 additional months.

(e) Unearned income includes, but is not limited to, returns from capital investments such as dividends and interest; benefits and pensions; RSDI; annuities; compensation payments; recurring contributions; temporary disability insurance payments; temporary worker's compensation payments; unemployment insurance benefits; and, worker's compensation received by a CWEP or AWEP participant or by a dependent, as a result of a participant's death, for a permanent disability sustained during a CWEP or AWEP activity.

(f) Lump sum income is addressed at 10:90-3.18.

N.J. Admin. Code § 10:90-3.9

Amended by R.1998 d.42, effective 1/20/1998.
See: 29 N.J.R. 3971(b), 30 N.J.R. 389(a).
In (b) and (e), inserted references to RSDI.
Amended by R.2003 d.226, effective 6/16/2003.
See: 34 N.J.R. 2713(a), 35 N.J.R. 2670(a).
Rewrote (d).
Amended by R.2009 d.261, effective 8/17/2009.
See: 41 N.J.R. 1368(a), 41 N.J.R. 3091(a).
In (c)1, substituted "averaged over a 12-month period" for "prorated over the stated term of the contract only".