9 Colo. Code Regs. § 2503-6-3.605
Current through Register Vol. 47, No. 20, October 25, 2024
Section 9 CCR 2503-6-3.605 - Income3.605.1IncomeA. For Colorado Works grant payments, all countable gross income that members of the assistance unit and budgetary unit have received or expect to receive shall be used to determine eligibility. 1. Consideration of income - for purpose of determining need, all countable gross income received in the month prior to, if available, and in the month of application shall be used to determine eligibility of members of the assistance unit.2. Availability of income - income shall be countable when actually available, when the client has a legal interest in a sum, and has the legal ability to make such sum available for support and maintenance. Income, in general, is the receipt by a client of a gain or benefit in cash or in-kind during a calendar month. Received means the date on which the income becomes legally available.3. Securing potential income - a client must make every reasonable effort to secure potential income. a. The time required to make income available shall not be used as a basis for delaying the processing of an application.b. When the client is taking appropriate action to secure potential income, the assistance unit shall continue without adjustment until the income is available.c. If the client refuses to make a reasonable effort to secure potential income, such income must be considered as if available. Timely and adequate notice must be given to the assistance unit regarding a proposed action to deny, reduce, or terminate assistance, based on the availability of the income.d. If, upon the receipt of the prior notice, the client acts to secure the potential income, the proposed action to deny, reduce, or terminate assistance shall be withdrawn and assistance must be approved and/or continued without adjustment until the income is, in fact, available.4. Income of a non-participant stepparent and a non-participant parent of an unmarried minor parent a. A stepparent's countable income is considered available to stepchildren included in the assistance unit as dependent children. The countable income of a non-participant parent(s) of an unmarried minor parent who is living in the same home as the minor parent, shall also be deemed to the assistance unit. The countable income equals gross earned income minus the employment disregard of $90, minus the maintenance or child support paid to others outside the assistance unit, minus the amounts actually paid by the individual to other individuals not living in the home and who could be claimed by the individual for federal income tax purposes, plus any unearned income received by the stepparent or non-participant parent. The needs of the stepparent or parent of the minor parent, and the needs of individuals living in the home for whom the stepparent or parent are responsible shall be deducted from the result to determine the amount attributed to the assistance unit.
b. Income of parents living in the same home as the unmarried minor parent shall be attributed to the assistance unit of the minor parent.5. Sponsored non-citizens a. It shall be presumed that an affidavit of support demonstrates the sponsor's ability to make income available to a non-citizen whom he or she sponsors at a minimum of one hundred twenty-five percent (125%) of the Federal Poverty Level. Therefore, the net income of a non-citizen's sponsor and the sponsor's spouse shall be deemed to the assistance unit.b. Sponsor net income equals gross earned income minus twenty percent (20%) or $175, whichever is less, minus support paid to dependents not living in the sponsor's home, plus any unearned income. The remaining income shall be considered available as unearned income to the non-citizen for the purpose of establishing eligibility and payment for Colorado Works. The client may rebut the county department's determination that the income of the sponsor is available. If such a determination is made, the sponsor's income will not be deemed to the assistance unit.
c. The income of the sponsor will not be deemed to the assistance unit if any of the following are true: 1) The non-citizen is a qualified non-citizen who is not a legal permanent resident (i.e. refugees, asylees, parolees and Cuban and Haitian entrants).2) The non-citizen adjusted their status to legal permanent resident from refugee or asylee status.3) The non-citizen's sponsor signed the sponsorship agreement prior to December 19, 1997.4) The non-citizen is a victim of battery or extreme cruelty.5) The total income of the non-citizen and non-citizen's spouse, together with the total income of the sponsor and the sponsor's spouse (who is also a sponsor) is less than one hundred twenty-five percent (125%) of the Federal Poverty Guidelines for the household size of both the non-citizen and the sponsor.6) The non-citizen earned or can be credited with forty (40) qualifying quarters of coverage as defined under Title II of the Social Security Act.7) The non-citizen was sponsored on an affidavit of support other than the I-864. Or the non-citizen entered in a nonfamily or employment classification that did not require the sponsor to sign form I-864.d. If it is determined that the legal immigrant received financial assistance benefits that were the responsibility of the sponsor, the State Department or county department may recover such funds from the sponsor or the legal immigrant via the following: 2) State income tax refund offset;3) State lottery winnings offset; and,4) Administrative lien and attachment. Enforcement of duties under affidavit of support shall be the responsibility of the sponsored immigrant.
6. Net income of persons who are required to be included in the assistance unit, but who are disqualified due to failure to meet citizenship, non-citizen status, lawful presence or Social Security Number requirements, or are ineligible as defined in section 3.604.2.C, shall be deemed to the assistance unit. Net income equals gross earned income minus employment disregards and employment incentives plus any unearned income.B. Countable Income All countable income, including earned and unearned income received, or unearned income an assistance unit expects to receive in the application month and any month following shall be used to determine eligibility for the assistance unit.
3.605.2Earned IncomeA. Earned In-kind Income Earned in-kind income shall be income resulting from the performance of services by the client for which he or she is compensated in shelter or other items in lieu of wages.
B. Consideration of Earned Income "Earned Income" is still considered when:
1. Money payments obligated to the employee are diverted to a third-party for the employee's household or other expenses;2. Wages are being garnished by a court order. With the exception of contract employment, wages that are paid to an employee for a period for which services were rendered are considered available when paid rather than when earned, except that wages held at the request of the employee are considered income in the month they would otherwise have been paid.
C. Income from Short-Term Employment Income received from short-term employment such as temporary employment (ninety days or less) and subsidized employment shall not be considered to determine eligibility as long as the client has not been terminated or has terminated the employment due to a fault of their own. This employment may be documented in the Individualized Plan.
D. Countable Earned Income 1. Consideration of Earned Income Against the Program Income Standard Unless otherwise specified, any earned income is countable and the applicable earned income must be considered against the applicable needs standard.
2. Determining Earned Income The amount of wages, salaries, or commissions available to the client after the applicable disregards is considered the net earned income.
3. Wages for Providing Home Care Allowance Services When a client is the care provider to another client for whom a Home Care Allowance (HCA) payment is made, the HCA payment is considered earned income to the client who is the care provider.
4. Earned Income of a Dependent Child not in School All earned income of dependent children who are not students or making satisfactory progress in an equivalent activity shall be considered in determining eligibility for Colorado Works.
E. Self-Employment Income 1. A client who is self-employed shall have the following applied to their income:a. To determine the net profit of a self-employed client, deduct the cost of doing business from the gross income.1) These expenses include, but are not limited to, the rent of business premises (if working out of the home, the cost of the room used when doing business shall be used to determine the amount of the expense), wholesale cost of merchandise, utilities, interest, taxes, labor, and upkeep of necessary equipment.2) Depreciation of equipment shall not be considered as a business expense.3) The cost of and payments on the principal of loans for capital assets or durable goods shall not be considered as a business expense.4) Personal expenses such as personal income tax payments, lunches, and transportation to and from work are not business expenses, and are included in the applicable earned income disregards computation.b. Appropriate allowances for the cost of doing business for clients who are licensed, certified, or approved day care providers are:1) For the first child for whom day care is provided, deduct $55, and2) For each additional child deduct $22. If the client can document a cost of doing business that is greater than the amounts above, the procedure described in (a), above, shall be used.c. The result net profit amount, secured after the appropriate deductions described above, shall be treated as described in section 3.605.2.D, concerning earned income.d. An allowable form of verification for self-employment is a client's ledger of income and expenses.2. Income Received From Self-Employment All self-employment income that is received regularly shall be considered income in the month it is received.
3. Irregular Receipt of Self-Employment Income If receipt of self-employment income is irregular or varies significantly from month to month, it shall be averaged over a twelve-month period.
4. Other Types of Self-Employment Income Some different types of self-employment income and how they are considered include, but are not limited to, the following:
a. Self-employment income earned by the owner of a farm - shall be considered in the month it is received.b. Rental income - shall be considered as self-employment income only if the client actively manages the property for an average of twenty (20) hours per week or more.c. Board (to provide a person with regular meals only) payments shall be considered earned income in the month received to the extent that the board payment exceeds the maximum Food Assistance allotment for a one-person household per boarder and other documented expenses directly related to the provision of board.d. Room (to provide a person with lodging only) payments shall be considered earned income in the month received to the extent that the room payment exceeds other documented expenses directly related to the provision of room.e. Room and board payments shall be considered earned income in the month received to the extent that the payment for room and board exceeds the Food Assistance allotment for a one-person household per room and boarder and other documented expenses directly related to the provision of room and board.F. In-Kind Countable Earned Income1. Donated in-kind earned income is countable when it:a. Is regular and for a specific time period;b. Is a necessary service; and,c. If not performed by the client, someone would have to be hired to perform the service.2. If donated services meet these requirements, the value of these services is determined by: a. The going rate in the community; or b. From two employers of like services.3. The client shall be informed that the continuation of donation of services will result in an income deduction from the assistance grant after all applicable earned income disregards have been applied.G. In-Kind Income In Exchange For Employment In-kind income received in exchange for employment is employment income and shall have the appropriate earned income disregards applied to the total value of the income. The amount considered as earned income when a client is paid in-kind is the value of the item supplied. The current market value of the item is used if the value of the item is not provided.
3.605.3Countable Unearned IncomeUnless otherwise specified, any unearned income is countable and together with all other countable income of the client it must be considered against the applicable assistance program need and/or grant standards specified in the regulations covering the different programs.
A. Countable Unearned Income Countable unearned income includes, but is not limited to the following, as well as other payments from any source, which can be construed to be a gain or benefit to the client and which are not earned income:
1. Veteran's Compensation and pension.2. Income from rental property is considered as unearned income where the client is not actively managing the property on an average of at least twenty (20) hours a week. Rental income is countable to the extent it exceeds allowable expenses. Allowable expenses are maintenance, taxes, management fees, interest on mortgage, and utilities paid. This shall not include the purchase of the rental property and payments on the principal of loans for rental property.3. Current spousal maintenance (also referred to as alimony).4. U.S. Department of Veterans Affairs (VA) educational assistance (G.I. Bill) payments or any other benefits which are conditional upon school attendance are income to the extent that they exceed expenses necessary for school attendance.5. Proceeds of a life insurance policy to the extent that they exceed the amount expended by the beneficiary for the purpose of the insured recipient's last illness and burial which are not covered by other benefits.6. Proceeds of a health insurance policy or personal injury lawsuit to the extent that they exceed the amount to be expended or required to be expended for medical care.8. Income from jointly owned property - in a percentage at least equal to the percentage of ownership or, if receiving more than percentage of ownership, the actual amount received.9. Lease bonuses (oil or mineral) received by the lessor as an inducement to lease land for exploration are income in the month received.10. Oil or mineral royalties received by the lessor are income in the month received.11. Stepparent and non-citizens' sponsors' attributable income for Colorado Works cases.12. Amounts withheld from unearned income because of a garnishment are countable as unearned income.13. Loans or inheritances.15. Dividends and interest received on savings bonds, leases, etc.16. Annuities, pensions, or retirements payments.17. Disability or survivor's benefits.18. Worker's Compensation payments.19. Unemployment Compensation.20. Social Security benefits.B. Periodic Payments The following types of periodic payments are countable unearned income:
1. Annuities - payments calculated on an annual basis which are in the nature of returns on prior payments or services; they may be received from any source;2. Pension or retirement payments - payments to a client following retirement from employment, such payments made by a former employer or from any insurance or other public or private fund;3. Disability or survivor's benefits - payment to a client who has suffered injury or impairment, or to such client's dependents or survivors; such payments may be made by an employer or from any insurance or other public or private fund;4. Worker's Compensation payments - payments awarded under federal and state law to an injured employee or to such employee's dependents; amounts included in such awards for medical, legal, or related expenses incurred by a client in connection with such claim are deducted in determining the amount of countable unearned income;5. Veteran compensation and pension - payments based on service in the armed forces; such payments may be made by the VA, another country, a state or local government, or other organization. Any portion of a VA pension that is paid to a veteran for support of a dependent shall be considered countable unearned income to the dependent rather than the veteran.6. Unemployment Compensation - payments in the nature of insurance for which one qualifies by reason of having been employed and which are financed by contributions made to a fund during periods of employment;7. Railroad retirement payments - payments, such as sick pay, annuities, pensions, and unemployment insurance benefits, which are paid by the Railroad Retirement Board (RRB) to a client who is or was a railroad worker, or to such worker's dependents or survivors;8. Social Security benefits - old age (or retirement), survivors, dependent, and disability insurance payments (OASDI or RSDI) made by the Social Security Administration; also included are special payments at age seventy-two (72) (Prouty Benefits and Black Lung benefits);9. Supplementary Medical Insurance Benefits (SMIB)- Social Security "Medicare" supplementary medical insurance benefit is a voluntary program, therefore the full Social Security award amount is counted as income to determine Colorado Works eligibility and to determine the amount of financial assistance to the client. The lump sum SMIB refund received by the "buy-in" recipient is exempt income as the client has previously been charged with that income.10. Military Allotment- A military allotment received on behalf of a client for those individuals included in the budget unit shall be considered as income in the month received. The military allotment received by the non-recipient spouse, parent, or stepparent on behalf of individuals not in the assistance unit shall be considered as income in the month received to the extent that such income exceeds the need standard concerning those persons not in the budget unit.3.605.4Exempt Unearned IncomeA. For the purpose of determining eligibility for Colorado Works, the following shall be exempt from consideration as income: 1. Income Tax refunds. a. The Earned Income Tax Credit (EITC) shall also be exempt for the month in which the EITC payment is received and for the following month.b. County departments shall provide assistance to help clients apply for and receive the federal and State EITC.2. Third-Party Payments- The value of any third-party payment for medical care or social services paid on behalf of a client.3. Emergency Assistance- Emergency Assistance received on a one-time basis in cash or in kind from other agencies and organizations.4. Energy Assistance- Home energy assistance granted to a client by a private non-profit organization or home energy supplier, whether in kind, by voucher, or vendor payment.5. Personal Care and Home Care- Personal care or home care allowances paid to a recipient or non-recipient spouse, parent, stepparent, or child, from a federal, state, or local government program for in-home supportive services (attendant, chore, housekeeping) shall be exempt as income in determining the amount of attributable non-recipient spouse, non-recipient parent, or non-recipient stepparent income. However, it shall be classified as employment income in determining the attendant's own eligibility for assistance.6. VA Aid and Attendance- VA Aid and Attendance may be paid to qualified veterans in addition to their regular VA benefit. VA Aid and Attendance is exempt income to the applicant or recipient to determine eligibility for public assistance in the applicant's or recipient's own home, if the VA Aid and Attendance is used for medical supplies and medical or attendant care not covered by Medicare or Medicaid, or other health insurance programs. The remainder is deducted from the assistance grant. (Amounts for attendant care are treated in the same manner as specified in the preceding paragraph.)7. General Assistance- General Assistance granted to a client by the county department prior to or as a supplement to categorical assistance.8. Crime Victims Compensation Act.B. General Income Exemptions - Exemptions from Consideration as Income For the purpose of determining eligibility for Colorado Works, the following shall be exempt from consideration as income:
1. A bona fide loan. Bona fide loans are loans, either private or commercial, which have a repayment agreement.2. Benefits received under the Older Americans Act, Nutrition Program for the Elderly.3. The value of supplemental food assistance received under the special food services program for children provided for in the National School Lunch Act and under the Child Nutrition Act, including benefits received from the special supplemental food program for Women, Infants and Children (WIC).4. Home produce utilized for personal consumption.5. Payments received under Title II of the Uniform Reconciliation Act and Real Property Acquisition Policies Act; relocation payments to a displaced homeowner toward the purchase of a replacement dwelling are considered exempt for up to six (6) months.6. Experimental Housing Allowance Program (EHAP) payments made by HUD under Section 23 of the U.S. Housing Act.7. Payments from Indian judgment funds and tribal funds held in trust by the Secretary of the Interior and/or distributed per capita; and the initial purchase made with such funds.8. Distributions from a native corporation formed pursuant to the Alaska Native Claims Settlement Act (ANCSA) which are in the form of: cash payments up to an amount not to exceed $2,000 per individual per calendar year; stock; a partnership interest; or an interest in a settlement trust. Cash payments, up to $2,000, received by a client in one calendar year is excluded as income.9. Assistance from other agencies or organizations that are provided for items not included in the need standard or do not duplicate a component of the need standard in total.10. Major disaster and emergency assistance provided to clients, and comparable disaster assistance provided to states, local governments, and disaster assistance organizations.11. A child receiving foster care or kinship care funds under Title IV of the Social Security Act shall be excluded from the assistance unit and his or her income shall be exempt from consideration for Colorado Works eligibility and payment.12. Payments to volunteers serving as foster grandparents, senior health aids, or senior companions, and to persons serving in the Service Corps of Retired Executives (SCORE) and Active Corps of Executives (ACE) and any other program under Title I (AmeriCorps VISTA) when the value of all such payments adjusted to reflect the number of hours such volunteers are serving is not equivalent to or greater than the minimum wage, and Title II and Title III of the Domestic Volunteer Services Act.13. Training allowances or training scholarships granted by Workforce Innovation and Opportunity (WIOA)or other programs to enable any individual to participate in a training program is exempt.14. Payments received from the Youth Incentive Entitlement Pilot Projects (YIEPP), the Youth Community Conservation and Improvement Projects (YCCIP), and the Youth Employment and Training Programs (YETP) under the Youth Employment and Demonstration Project Act (YEDPA).15. Social Security benefit payments and the accrued amount thereof paid to a client when an individual plan for self-care and/or self-support has been developed under the following conditions: a. Supplemental Security Income (SSI) permits such disregard under such developed plan for self-care-support goal, and b. Assurance exists that the funds involved will not be for purposes other than those intended.16. Income received through the Workforce Innovation and Opportunity Act, including supportive services through that program.17. Money received from the Radiation Exposure Compensation Trust Fund, P.L. No. 101-426 as amended by P.L. No. 101-510.18. Reimbursement of out-of-pocket expenses.19. Payments received by clients because of their status as victims of Nazi persecution pursuant to P.L. No. 103-286.20. Individual Development Accounts (IDAs).21. Distributions from retirement savings accounts.22. Distributions from health care savings accounts.23. Income paid to children of Vietnam veterans who were born with spina bifida pursuant to P. L. No. 104-204.24. Income of A client who is attending school (student in a secondary education or undergraduate degree program) shall be considered as follows:a. Income received from a college work-study program grant shall be exempt.b. All earned income, including earned income from WIOA, that is received by a dependent child who is a full-time student or a part-time student who is not a fulltime employee shall be disregarded.25. Educational savings accounts.26. Educational grants, loans, stipends, and/or scholarships.27. A client receiving SSI payments shall be excluded from the assistance unit and his or her income shall be exempt from consideration for Colorado works eligibility and payment.28. Refugee resettlement funds and reception and placement money.29. Interim Cash Payment received through the Colorado Refugee Services Program.30. Life or disability insurance policies that may have a cash value taken.31. The benefits provided from the Low-Income Energy Assistance Program (LEAP).32. A child receiving subsidized adoption funds shall be excluded from the assistance unit and his or her income shall be exempt from consideration for Colorado Works eligibility and payment.33. Income that is exempt shall also be exempt if received as a lump sum or excluded if designated or legally obligated for legal fees related to obtaining the lump sum payment, medical bills, funeral and burial expenses, or income taxes.34. Income tax credits when identified as exempt by the state or federal government.35. Wages earned through subsidized employment programs including employment, apprenticeships, on-the-job training, and transitional jobs.3.605.5Child Support IncomeA. At initial application, current child support payments received by the assistance unit shall be considered income and counted against the need standard to determine eligibility.B. Once found eligible, child support income is excluded in the basic cash assistance grant calculation.C. For purposes of redetermination (RRR): 1. Inconsistent child support payments are not countable. Child support payments are considered consistent when received in all six (6) of the six (6) previous months.2. Once consistency of payments has been established, current child support is averaged over the previous six (6) months. If that averaged amount is $500 or less for the household, the child support income is disregarded for both eligibility and grant calculation. If that amount is over $500 for the household, it is counted, in combination with other income, against the need standard to determine continued eligibility.3. If found eligible, the child support income is disregarded for basic cash assistance grant calculation.D. Child support arrears are exempt income and are not used for eligibility or grant calculation.37 CR 17, September 10, 2014, effective 10/1/201438 CR 11, June 10, 2015, effective 7/1/201538 CR 15, August 10, 2015, effective 9/1/201538 CR 23, December 10, 2015, effective 1/1/201639 CR 19, October 10, 2016, effective 11/1/201640 CR 03, February 10, 2017, effective 2/14/201740 CR 17, September 10, 2017, effective 10/1/201741 CR 15, August 10, 2018, effective 9/1/201840 CR 23, December 10, 2017, effective 12/30/201843 CR 01, January 10, 2020, effective 1/30/202043 CR 13, July 10, 2020, effective 8/1/202043 CR 23, December 10, 2020, effective 1/1/202144 CR 21, November 10, 2021, effective 3/1/202245 CR 03, February 10, 2022, effective 3/2/202245 CR 13, July 10, 2022, effective 6/3/202245 CR 15, August 10, 2022, effective 8/30/202246 CR 09, May 10, 2023, effective 6/1/2023