16 Del. Admin. Code § 9000-9059

Current through Register Vol. 28, No. 7, January 1, 2025

Section 9000-9059 - Income Exclusions

This section lists the types of income excluded for the Food Supplement Program.

1. Exclude the following income when determining eligibility for food benefits.

A. In-kind Benefits - A gain or benefit not payable to the household do not count as income as follows:

1. Meals

2. Clothing

3. Housing

4. Produce from a garden

5. Working in exchange for free services or rent

B. Vendor Payments - Payments made by a person or organization on behalf of the household to a creditor, person or organization providing a service to the household do not count as income, as follows:

1. Rent or mortgage payments made to landlords or mortgagees by HUD. Housing assistance payments made through a State or local housing authority.

2. Reimbursements made in the form of vendor payments are excluded on the same basis as reimbursements paid directly to the household as described in DSSM 9059 E.

3. Payments made to a third party, on behalf of a household, using money that the payer does not owe the household.

(i) A friend or relative uses his or her own money to pay the household's rent directly to the landlord.

(ii) Employer pays a household's rent directly to the landlord in addition to paying the household its regular wages.

(iii) The value of the housing an employer provides for an employee in addition to wages.

(iv) Payments specified by a court order or other legally binding agreement, to go directly to a third party rather than the household.

(a) A court awards support payments for $400 a month and, in addition, orders $200 to be paid directly to a bank for repayment of a loan. The $400 payment counts as income and the $200 payment does not count.

(b) Payments in excess of amounts specified in a court order or written agreement that someone pays to a third party on the household's behalf does not count as income.

(v) Support payments not required by a court order or other legally binding agreement does not count as income.

4. Child care payments made to child care providers for day care for a household member.

5. Emergency Assistance payments made directly to a third party for a household expense, even if the household has the option of receiving a direct cash payment.

C. Employer Benefits - Incentive or Flex benefits not legally obligated or otherwise payable to households.

1. Credits available to employees to use to buy health insurance, annual leave, sick leave or life insurance. The employee cannot elect to receive a cash payment and loses the credits if not used. The amount shows up on the pay stub when used.

2. Points given as incentive to arrive to work on time or work so many weeks without taking leave. These points have a monetary value that appears on the pay stub and the points are subject to taxes. The employee can only redeem the points for commodities or goods from a catalog provided by the employer. The employee cannot convert the points to cash.

D. Irregular Income - Any income received in the certification period that does not exceed $30 a quarter that is infrequent and not reasonably anticipated as follows:

Gifts

Lottery winnings

Garage Sales

Flea markets

E. Educational Income - All education income (Title IV, BIA educational income, scholarships, educational grants, fellowships, deferred payment loans, veteran's educational benefits, work-study) regardless of earmarking or use.

Exceptions: The portion of Veterans Educational Assistance designated as a living allowance for family members of the student is counted as unearned income. Income received by a student as part of an assistantship program is counted as earned income. Payments that are designated as a living stipend or for basic living expenses are counted as unearned income. If the customer works or performs a service for the living stipend, it is considered earned income.

F. Loans - All loans that are expected to be repaid.

G. Reimbursements - Reimbursements for past or future expenses that are not a gain or benefit to the household and do not exceed the costs of the actual expenses. Excluded reimbursements include:

1. Payments provided for an identified expense, other than normal living expenses, and used for the purpose intended.

(i) Normal living expenses include:

(a) Rent or mortgage

(b) Utilities

(c) Personal clothing

(d) Food eaten at home

(ii) Do not consider education assistance provided for normal living expenses like room and board as a reimbursement.

2. Flat allowances covering multiple expenses as long as none of the reimbursement covers normal living expenses

3. Do not consider reimbursements as exceeding actual expenses, unless the provider or the household verifies it is excessive.

4. Reimbursements for job or training related expenses:

(i) Travel

(ii) Uniforms

(iii) Per diem

(iv) Transportation to and from job or training site

(v) Travel expenses incurred by migrant workers

(vi) Maintenance funds for Vocational Rehabilitation clients for uniforms, supplies, etc.

(vii) Out-of-pocket expenses of volunteers in the course of their work.

(viii) Reimbursements provided over and above the basic wages for these expenses

5. Medical or dependent care reimbursements.

6. Reimbursements received by households to pay for a service provided under Title XX of the Social Security Act.

7. Reimbursements made to households for expenses necessary for participation in an education component under the Employment and Training program.

H. Monies for third-party beneficiaries - Monies received and used for the care and maintenance of a third-party beneficiary who is not a household member.

1. When beneficiaries of a single payment are both household and non-household members, exclude any identifiable portion of the payment intended and used for the care and maintenance of the non-household member.

2. When you cannot identify the non-household member's portion, prorate the payment evenly among the intended beneficiaries. Apply the exclusion to the non-household member's pro-rata share or the amount actually used for the non-household member's care and maintenance, whichever is less.

I. Student income - The earned income of a student under age 18 who:

1. Attends elementary or secondary school or classes to obtain a GED at least half-time; and

2. Lives with a natural, adoptive or stepparent or is under the control of a household member other than a parent; or

3. Receives food benefits as a separate household, but lives with a natural, adoptive or stepparent.

Continue this exclusion during temporary interruptions in school attendance due to semester or vacation breaks, provided the child's enrollment will resume following the break. When the worker cannot identify the child's earnings, or amount of work performed from that of other household members, prorate the total earnings equally among the working members and exclude the child's share.

J. Non-recurring Lump Sum Payments - Money received in the form of a non-recurring lump sum payment, which is not limited to:

1. Income tax refunds

2. Rebates

3. Credits

4. Retroactive lump sum Social Security, SSI, public assistance, railroad retirement benefits

5. Payments of large retroactive SSI benefit amounts made in installments for SSI recipients.

6. Lump sum insurance settlements

7. Refunds of security deposits on rental property or utilities

8. TANF diversion payments

Count these payments as resources in the month received unless specifically excluded from consideration as a resource by other federal laws.

K. Self-Employment Business Costs - The cost of producing self-employment income via Delaware's flat rate deduction.

L. Energy assistance:

1. Any payments or allowances made for the purpose of providing energy assistance under any Federal law other than part A of Title IV of the Social Security Act, including utility reimbursements made by the Department of Housing and Urban Development and the rural Housing Service, or

2. A one-time payment or allowance applied on an as-needed basis and made under a Federal or State law for the costs of weatherization or emergency repair or replacement of an unsafe or inoperative furnace or other heating or cooling device. Consider a down payment followed by a final payment upon completion of the work a one-time payment.

M. Cash donations - Cash donations received from one or more private nonprofit charitable organization, based on need and not exceeding $300 in a Federal fiscal year quarter.

N. EITC - Earned income tax credit payments received either as a lump sum or payments.

O. E & T Payments - Payments made to an E & T participant for costs that are reasonably necessary and directly related to participation in the E & T program. These costs include, but are not limited to:

1. Dependent care costs,

2. Transportation,

3. Other expenses related to work, training or education, such as:

(i) uniforms,

(ii) personal safety items or

(iii) other necessary equipment, and

4. Books or training manuals.

These costs shall not include the cost of meals away from home.

P. Foster Care Payments - Governmental foster care payments received by households with foster care individuals who are boarders in accordance with DSSM 9013.3.

Q. PASS Accounts - Income of an SSI recipient necessary for the fulfillment of a Plan for Achieving Self-Support (PASS). Exclude the income set aside for this special PASS account.

R. Basic Allowance for Quarters - Marines living on base in adequate quarters are not entitled to receive a Basic Allowance for Quarters (BAQ) even though the Leave and Earnings Statement (LES) lists the amount under entitlements and lists a deduction for the same amount under deductions on the statement. For these cases, disregard the BAQ under the entitlement and deduction sections when verified. Staff must advise applicants to get a letter from their commanding officer stating that the applicant is not entitled to the BAQ and does not receive it.

S. HUD's Family Self-Sufficiency (FSS) Program - Participants in the FSS program sign a contract to achieve economic independence within five years. The program deposits a portion of rent increases into an escrow account to save for the participant at the end of the program with the following conditions:

1. As the participant's employment income rises, HUD waives a portion of the normal rent increases.

2. HUD credits the waived amount to an escrow account and gives the amount to the family at the end of the program.

3. The participating household must fulfill its employment obligation under the contract or HUD may terminate the FSS supportive services.

4. If HUD terminates the FSS supportive services, the family will then forfeit any escrow account funds.

5. While the funds are in the FSS Escrow Account, the total funds are unavailable to the household and excluded as a resource.

6. When the household achieves economic independence and is given the escrow account, exclude the income as a non-recurring lump-sum payment.

T. Temporary Census Employment - The earnings of temporary census workers from the Bureau of Census is excluded for the Census 2010 Demonstration Project. The disregard expires September 30, 2010, unless extended by Food and Nutrition Service.

U. Payments or reimbursements from the following federal laws:

1. National School Lunch Act ( P. L. 79-396 and P. L. 94-105)

(i) School Lunch Program

(ii) Summer Food Service Program for Children

(iii) Commodity Distribution Program

(iv) Child and Adult Care Food Program (The exclusion applies to assistance provided to children, not assistance paid to providers.)

2. Child Nutrition Act of 1966 ( P. L. 89-642)

(i) Special Milk Program

(ii) School Breakfast Program

(iii) Special Supplemental Food Program for women, infants, and children (WIC)

3. Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970 ( P. L. 91-646)

4. Domestic Volunteer Services Act of 1973 ( P. L. 93-113)

(i) Title I - for those individuals receiving food benefits or public assistance at the time they joined the Title I program.

(a) VISTA

(b) University Year for Action

(c) Urban Crime Prevention Program

Temporary interruptions in food benefit participation shall not alter the exclusion once the worker makes an initial determination.

(ii) Title II

(a) Retired Senior Volunteer Program (RSVP)

(b) Foster Grandparents Program

(c) Senior Companion Program

5. Disaster Relief Act of 1974 ( P. L. 93-288)

Disaster Relief and Emergency Assistance Amendments of 1988 ( P. L. 100-707)

(i) Federal assistance provided to persons directly affected by a disaster.

(ii) Disaster assistance provided by States, local governments, and disaster assistance organizations

6. Workforce Investment Act (WIA) of 2008 (P. L. 105-220)

WIA income is countable if paid for:

·	On-the-job training programs paid under Title I of WIA paid to individuals age 19 and older.

Job Services can identify Title I WIA on-the-job training programs if the program funding is in question.

WIA income is excluded if paid for:

·	Summer Youth Payments. (The income is excluded regardless of the age of the child, the child's school enrollment, or whether or not the child is a dependent.)

·	On-the-Job training programs paid to individuals under 19 years of age who are dependents, living with parents or under parental control of an adult household member. If paid to dependents under age 19, it is not counted as income regardless of the child's student status.

·	On-the-job WIA payments made to migrant and seasonal farm workers, Native Americans, dislocated workers, Job Corps, affirmative action programs, labor market information programs, and veterans' employment programs.

·	Work experience WIA payments.

·	Training experience WIA payments.

·	AmeriCorp and Youthbuild Programs.

7. Low-Income Home Energy Assistance Act ( P. L. 99-425)

(i) Home energy assistance payments or allowances

(ii) Excess shelter expense deduction is allowed by eligible households getting payments for heating or cooling expenses.

8. Veterans' Benefits Improvement and Healthcare Authorization Act of 1986 (GI Bill)( P. L. 99-576)

(i) Any amount of basic pay reduced and reverted back to the Treasury.

(ii) Basic educational assistance entitlements for service on active duty.

(iii) Authorized stipends for participation in study of Vietnam-era veterans' psychological problems

9. Older Americans Act ( P. L. 100-175)

(i) Senior Community Service Employment Program (Title V) monies for individuals age 55 and older.

(ii) Monies from the organizations listed below that receive some Title V funds:

(a) Green Thumb

(b) National Council on Aging

(c) National Council of Senior Citizens

(d) American Association of Retired Persons

(e) U.S. Forest Service

(f) National Association for Spanish Speaking Elderly

(g) National Urban League

(h) National Council on Black Aging

10. The Housing and Community Development Act of 1987 ( P. L. 100-242)

(i) Excludes most increases in the earned income of a family residing in certain housing while participating in HUD demonstration projects.

11. Wartime Relocation of Civilians ( P. L. 100-383) (Civil Liberties Act of 1988) excludes payments made to:

(i) U.S. citizens of Japanese ancestry

(ii) Permanent resident Japanese aliens or their survivors

(iii) Aleut residents of the Pribilof Islands and the Aleutian Islands West of Unimak Island

12. Agent Orange Compensation Exclusion Act (P. L. 101-201)

Omnibus Budget Reconciliation Act of 1989 (P. L. 101-239)

Agent Orange Act of 1991 (P. L. 102-4)

(i) Agent Orange Settlement funds

(a) The disabled veteran will receive yearly payments.

(b) Survivors of deceased disabled veterans will receive a lump-sum payment.

(ii) Other funds established after the settlement in the Agent Orange product liability litigation

(iii) Lump sum Veterans' benefits to some veterans with service connected disabilities resulting from exposure to Agent Orange

13. Radiation Exposure Compensation Act (P L. 101-426)

14. Omnibus Budget Reconciliation Act of 1990 (P. L. 101-508) - Any Federal earned income tax credit shall not be treated as income and shall not be taken into account in determining resources for the month of its receipt and the following month

September 1988 amendments to the Food Stamp Act - Any advance payment of earned income credit

August 1993 amendments to the Food Stamp Act - Exclusion from resources of any earned income tax credits received by any member of the household for a period of 12 months from receipt if such member was participating in the food stamp program at the time the credits were received and participated in such program continuously during the 12-month period

15. National and Community Service Act (NCSA) of 1990(P. L. 101-610)

(i) Title I includes three Acts:

(a) Serve-America: The Community Service, Schools and Service-Learning Act of 1990,

(b) American Conservation and Youth Service Corps Act of 1990, and

(c) National and Community Service Act.

(ii) The JTPA income exclusions with item 6 above apply to projects conducted under Title I of the NSCA as if such projects were conducted under the JTPA.

There are about 47 different NCSA programs. The programs make payments as a weekly stipend or for educational assistance.

The Higher Education Service-Learning program and the AmeriCorps umbrella program come under this Title.

(iii) The National Civilian Community Corps (NCCC) is a federally managed AmeriCorps program.

(iv) The Summer for Safety program is an AmeriCorps program under which participants earn a stipend and a $1000 post-service educational award.

(v) The National and Community Service Trust Act of 1993, P.L. 103-82, amended the National and Community Services Act of 1990 but it did not change the exclusion.

16. Cranston-Gonzales National Affordable Housing Act, P.L. 101-625, provides that services provided to public housing residents under this section (Family Investment Centers) are not counted as income for purposes of any other program or provision of State or Federal law.

The exclusion applies to services such as child care, employment training and counseling, literacy training, computer skills training, assistance in the attainment of certificates of high school equivalency and other services.

The exclusions do not apply to wages or stipends.

This law excludes most increases in the earned income of a family residing in certain housing while participating in HUD demonstration projects authorized by this public law. The affected regional offices are contacted individually regarding these projects.

17. Housing and Community Development Act of 1992, P. L. 102-550, treats payments made under the Youth Build Program like JTPA payments, as item 6 above.

18. Child Care and Development Block Grant Act Amendments of 1992, P.L. 102-586, (under Family Support Act of the Social Security Act) excludes the value of any child care provided or arranged, any amount received as payment for such care, or reimbursement for costs incurred for such care from income for purposes of any other Federal or Federally-assisted program that bases eligibility for, or the amount of benefits, on need.

19. Victims of Nazi Persecution, P. L. 103-286, disregards payments made to individuals because of their status as victims of Nazi persecution in determining eligibility for and the amount of benefits or services to be provided under any Federal or federally assisted program that provides benefits or services based on need.

20. Crime Act of 1984, P. L. 103-322, exclude payments to a victim from a crime victim compensation program from income and resources.

21. Individual Business Accounts - Part A of Title IV of the Social Security Act, P. L. 104-193, disregards funds in an Individual Business Account (IDA), including accruing interest, under the TANF block grant program for the purpose of determining eligibility to receive, or the amount of, any benefit authorized by the Food Stamp Act, during any period that an individual maintains or makes contributions into such an account.

22. Children of Vietnam Veterans - P. L. 104-204, disregard monthly allowances (from $200 - $1200) paid to a child of a Vietnam veteran for any disability resulting from spina bifida suffered by such child as income or resources in determining eligibility for or the amount of benefits under any Federal or federally assisted program.

23. Robert T. Stafford Disaster Relief and Emergency Assistance Act, P. L. 100-707, disregard Disaster Unemployment Assistance payments to any individual unemployed because of a major disaster as income or a resource when determining Food Supplemental Program benefits.

Individuals cannot be eligible for any other unemployment compensation and receive disaster unemployment benefits.

Benefits are limited to 26 weeks.

Staff need to verify the source of the unemployment income only if the client suffered a job loss or was unemployed due to a recent disaster.

24. Combat Pay, Section 4101, section 5(d) of the Food and Nutrition Act, excludes from income special military pay for military personnel deployed to a designated combat zone.

25. Filipino Veterans Equity Compensation Fund, American Recovery and Reinvestment Act (ARRA) of 2009, excludes from income payments made to certain veterans and the spouses of veterans who served in the military of the Government of the Commonwealth of the Philippines during World War II.

26. Child Support Payments, Food and Nutrition Act of 2008, Sec. 5. (d) (18), excludes legally obligated child support payments made to or for children who live outside of the household which includes current support, arrears, and other payments ordered like for educational costs or health care.

Legally-obligated means the household has a legal obligation to pay the support by court order, administratively ordered, legally enforceable separation agreement, etc.

Exception: Legally obligated child support payments made to an individual or agency outside of the household may be allowed as an exclusion even if the child for whom the support was paid is a household member. This allows an exclusion if the child moves in or out of the payer's house, or if arrearages are being paid to an outside agency, like DCSE.

V. American Indian or Alaska Native Payments

A law will usually authorize payments to members of a tribe or band and apply to the members enrolled in the tribe or band wherever they live.

Items 2, 3, and 4 are general laws and apply to all tribes. The individuals should have documentation showing the type of payment and its origin.

Payments made to individuals from the following sources are excluded:

1. Alaska Native Claims Settlement Act, P. L. 92-203

2. Judgment Funds ( P. L. 93-143 and P. L. 97-458)

3. Secretary of Interior Trust Funds for an Indian Tribe, P. L. 98-64

4. Interest Income from Trusts, P. L. 930-134, P. L. 97-458, and P. L. 103-66, (except funds in excess of $2,000 per year of interest income)

5. Navajo or Hopi Indian Relocation Assistance, P.L. 93-531

6. Submarginal land trusts, P. L. 94-114 for certain Indian tribes, which include:

Bad River Band of the Lake Superior Tribe of Chippewa Indians of Wisconsin

Blackfeet Tribe

Cherokee Nation of Oklahoma

Cheyenne River Sioux Tribe

Crow Creek Sioux Tribe

Lower Brule Sioux Tribe

Devils Lake Sioux Tribe

Fort Belknap Indian Community

Assiniboine and Sioux Tribes

Lac Courte Oreilles Band of Lake Superior Chippewa Indians

Keweenaw Bay Indian Community

Minnesota Chippewa Tribe

Navajo Tribe

Oglala Sioux Tribe

Rosebud Sioux Tribe

Shoshone-Bannock Tribes

Standing Rock Sioux Tribe

7. Indian Claims Commission for Sac and Fox Indians, P. L. 94-189

8. Grand River Band of Ottawa Indians, P. L. 94-540

9. Indian Claims Commission payments to the Confederated Tribes and Bands of the Yakima Indian Nation and the Apache Tribe of the Mescalero Reservation, P. L. 95-433

10. Indian Child Welfare, P. L. 95-608, excludes assistance or services provided for child and family service grant programs on or near reservations from affecting any federally assisted programs

11. Maine Indian Claims Settlement Act of 1980, P. L. 96-420

12. Turtle Mountain Band of Chippewas Arizona, P. L. 97-403

13. Blackfeet, Grosventre, and Assiniboine tribes, Montana, and the Papago, Arizona, P. L. 97-408

14. Red Lake Band of Chippewa Indians, P. L. 98-123

15. Assiniboine Tribes, P. L. 98-124

16. Old Age Assistance Claims Settlement Act, P. L. 98-500 (except for funds per capita shares in excess of $2,000)

17. Chippewas of Lake Superior, P. L. 99-146

Wisconsin:

Bad River Reservation

Lac du Flambeau Reservation

Lac Courte Oreilles Reservation

Sokaogon Chippewa Community

Red Cliff Reservation

St. Croix Reservation

Michigan:

Keweenaw Bay Indian Community (L'Anse, Lac Vieux Desert, and Ontonagon Bands)

Minnesota:

Fond du Lac Reservation

Grand Portage Reservation

Nett Lake Reservation (including Vermillion Lake and Deer Creek)

White Earth Reservation

18. White Earth Reservation Land Settlement Act of 1985, P. L. 99-264,

19. Saginaw Chippewa Indian Tribe of Michigan, P. L. 99-346

20. Chippewas of the Mississippi, P. L. 99-37

Minnesota:

Mille Lac Reservation

White Earth Reservation

Leech Lake Reservation

21. Puyallup Tribe of Indians Settlement Act of 1989, P. L. 101-41,for the Puyallup Tribe in the State of Washington.)

22. Indian Claims Commission, P. L. 101-277, 4/30/90 for te Seminole Nation of Oklahoma, Seminole Tribe of Florida, and the Miccosukee Tribe of Indians of Florida

23. Seneca Nation Settlement Act of 1990, P. L. 101-503

24. Confederated Tribes of the Colville Reservation Grand Coulee Dam Settlement Act, P.L. 103-436

16 Del. Admin. Code § 9000-9059

13 DE Reg. 937 (01/01/10)
13 DE Reg. 1550 (06/01/10)