16 Del. Admin. Code § 4000-4005

Current through Register Vol. 28, No. 7, January 1, 2025
Section 4000-4005 - Unearned Income

Unearned income is income received without performing work- related activities. Unearned income is counted as paid without the application of any disregards in both the TANF and GA programs.

Unearned income includes but is not limited to:

RSDI benefits -

Unemployment Compensation

Workman's Compensation

Union benefits

Veteran's benefits

Military Allotments

Annuities

Pensions

NOTE: If the Social Security Administration is recouping money from an individual's RSDI benefit due to an overpayment, count the net RSDI benefit amount that is received not the gross amount.

Unemployment Compensation

Treat unemployment compensation received by an unemployed principal earner as other income and subtract it from the need standard, rather than the payment standard, in determining eligibility for, and the amount of a family's Temporary Assistance for Needy Families benefit.

4005.1 Child Support Payments - TANF

In the TANF Program, the first $50.00 of child support received in a month is disregarded in determining financial eligibility. Child support in excess of $50.00 is counted as unearned income. If a unit is determined financially eligible, child support is disregarded in determining the amount of the grant.

For active cases, child support is collected and retained by the Division of Child Support Enforcement. The first $50.00 of child support that is collected each month by DCSE is paid to the TANF payee as a bonus check. If the amount of support collected is less that $50.00, the bonus check will equal the amount collected.

Pass-through/Disregard checks are paid the month following the month that the DCSE collects support. They are disregarded in determining TANF financial eligibility and grant amounts; however, they are counted as unearned income in the Food Stamp Program.

In the month of application if support is received prior to approval of a TANF grant, the support received minus the $50.00 child support disregard is budgeted as unearned income. Support received after approval of the grant is subject to collection by the DCSE. DCSE cannot accept child support payments unless a Delaware support order is in place. Therefore, we should count the child support money received by the recipient prior to a support order in place as unearned income until such time as DCSE has a support order in place and can accept the payments.

EXAMPLE: A woman applies for TANF for herself and her children on 2/15. She reports that she received a $100.00 support payment on 2/10 and expects to receive an additional $100.00 on 2/24. She is found eligible for TANF on 2/15. In February, $50.00 of child support is included in the TANF budget as unearned income. ($100.00 received prior to approval of the grant - $50.00 disregard = $50.00 budgetable.) The recipient will receive a $50.00 bonus check in March based on the $100.00 payment collected by the DCSE on 2/24.

4005.2 Child Support Payments - GA

In GA, child support is treated as unearned income and counted as paid. In cases where support may be available but is not paid, it is considered a potential resource. The client must take steps to obtain support payments as a condition of eligibility.

4005.3 Step-Parent Income in the TANF Program

In the TANF Program, a step-parent through marriage or civil union who resides with his/her step-children is considered responsible for supporting those children. A portion of the step-parent's income is used to determine the step-children's financial eligibility and the amount of assistance the children receive. To determine the amount of the step-parent's income that is deemed to the assistance unit, follow the steps listed below:

NOTE: The assistance unit must include the step-child, the step-child's natural or adoptive parent, and siblings who are also living in the home and who are otherwise eligible.

1. Determine the step-parent's gross income.
2. Deduct $90.00 from earned income.
3. Deduct the TANF standard of need (See DSSM 4007.2) for the family size that includes the step-parent and those individuals who
a. live in the step-parent's home
b. are the step-parent's dependents for income tax purposes
c. are not members of the TANF assistance unit because of a sanction.

(These individuals cannot include a person who is removed from the TANF unit because he/she failed without good cause to cooperate with DCSE or the First Step Program and is being sanctioned.)

4. Deduct amounts paid by the step-parent to individuals who are not living in the home, but who are claimed as dependents for income tax purposes.
5. Deduct child support or alimony payments made to individuals not living in the home.

The remainder is unearned income used to determine the assistance unit's financial eligibility and grant amount.

Summary - Total Income

- $90.00 from earned income

- Standard of Need

- Payments to dependents

Countable Income

The resources of a step-parent are not considered in determining the financial eligibility of the assistance unit. Resources held jointly by the step-parent and the step-parent's spouse are considered available in their entirety to both partners. If the spouse is a member of the assistance unit, these resources are considered in determining the unit's eligibility.

Step-parent budgeting is only used to determine the financial eligibility or benefit level of a step-child when the step-child's natural parent resides in the home. Stepparent income is not used to determine financial eligibility or benefit levels when the step-child's natural parent does not reside in the home.

NOTE: If the step-parent is included as a member of the TANF unit, his/her income is budgeted in accordance with rules governing the income of TANF applicants and recipients.

15 DE Reg. 1498 (04/01/12)

4005.4 Income of a Minor Parent's Parent of Legal Guardian in the TANF Program

To determine the financial eligibility of a TANF unit that consists of a dependent child and the child's minor parent (under age 18), the income of the minor parent's parent(s) or legal guardian must be considered if the minor parent and his parent or legal guardian live in the same home.

The resources of a minor parent's parent or legal guardian are not considered in determining the financial eligibility of the assistance unit.

A portion of the minor parent's parent income is used in determining the minor parent's eligibility and the amount of assistance for the minor parent and his/her child(ren). To determine the portion of the minor parent's income.

NOTE: For Households in which a minor teen parent has a baby born on January 1, 1999 or later the grandparent may receive benefits for him/herself and the teen parent but not for the child of the teen parent. This means that there is no grandparent deeming in these cases. See 3008 Family Cap

Applicants

. Determine the minor parent's income;

. Subtract 100% of the federal poverty level for the family size that includes the minor parent's parent(s) and dependents claimed by the minor parent's parent(s) from the minor parent's parent(s) income;

. Consider the remaining income unearned income to the minor parent; and

. Add together the minor parent's income to the deemed income from the minor parent's parent(s).

Compare the income to the payment standard for the family size that contains the minor parent and his/her child(ren).

Compare the income to the applicable payment standard for the family size of the assistance unit that contains the minor parent and his/her child(ren). If the income is less than the payment standard, the case is eligible for benefits. If the income is greater than the payment standard, the case is ineligible for benefits.

Benefit Determination

. Determine the minor parent's income;

. Subtract 200% of the federal poverty level for the family size that includes the minor parent's parent(s) and dependents claimed by the minor parent's parent(s) from the minor parent's parent(s) income; and

. Consider the remaining income as unearned income to the minor parent.

. Add together the minor parent's income to the deemed income from the minor parent's parent(s).

Compare the income to the applicable standard of need for the family size of the assistance unit that contains the minor parent and his/her child(ren).

Recipients

. Determine the minor parent's income;

. Subtract 200% of the federal poverty level for the family size that includes the minor parent's parent(s) and dependents claimed by the minor parent's parent(s); and

. Consider the remaining income as unearned income to the minor parent.

Compare the income to the applicable standard of need for the family size of the assistance unit that contains the minor parent and his/her child(ren).

4005.5 Income of a Spouse in the GA Program

This policy applies to GA applicants and recipients who are married/party to a civil union and live with their spouse.

To determine GA financial eligibility and grant amounts for unemployable adults where the GA eligible person resides with a spouse who has income but is not also technically eligible for a grant.

1. Determine the spouse's gross unearned income.
2. Determine the spouse's gross earned income.
3. Deduct $50 for work expenses from the spouse's earned income.
4. Add amounts from Step 1 and Step 3 to determine the spouse's countable income.
5. Compare the sum in Step 4 to the GA Standard of Need for two people.
6. If income exceeds the standard, the GA case is financially ineligible.
7. If income is less than the standard, the GA case is financially eligible. To determine the grant amount, subtract the income from the GA Standard of Need for two. The grant equals the difference, if the difference is less than the GA Standard of Need for one person. The grant equals the GA standard if one of the differences is equal to or greater than that amount.

EXAMPLES:

1. Spouse of GA eligible has $200 countable income.

$200 is greater than $166 - Case is ineligible.

2. Spouse has $130 countable income.

$130 is less than $166 - Case is eligible.

$166 minus $130 = $36 = GA grant.

3. Spouse has $30 countable income.

$30 is less than $166

$166 minus $30 = $136

4. GA grant = $123 (maximum for one person)

16 Del. Admin. Code § 4000-4005

15 DE Reg. 1498 (04/01/12)