392 Neb. Admin. Code, ch. 2, § 010

Current through September 17, 2024

Section 392-2-010 - INCOME

In determining eligibility, the Department shall consider income received by a family. In order to initially qualify for child care subsidy benefits, the family's income must not exceed the income limits established by Neb. Rev. Stat. § 68-1206.

010.01INCOME VERIFICATION. Individuals must provide verification of earned income, with a copy of check stubs, a statement from his or her employer, or some other documentation. When possible, the Department utilizes electronic data sources to verify income. A self-employed individual must submit a copy of his or her latest income tax return or his or her self-employment records. The individual can contact the Department to request assistance with verification.

010.01(A) An individual's declaration of unearned income is sufficient unless there is inconsistent information or the individual has a previous history of overpayments or abuse of the program. In these instances, the individual must provide verification of income before services will be approved. If the individual fails to provide required proof within 10 days of request, the application is rejected or services are terminated.

010.02 SELF-EMPLOYMENT DISREGARD. Individuals receiving self-employment income are allowed disregards to gross income.

010.02(A)STANDARD DISREGARD FOR SELF-EMPLOYMENT. For individuals who incur expenses related to producing goods or services but provide no tax return to document such expenses, the Department applies a standard disregard of 49% to the gross income and does not calculate actual expenses.

010.02(B) ITEMIZED DISREGARDS FOR SELF-EMPLOYMENT. For individuals who incur operating expenses related to producing the goods or services which are itemized on the individual's tax return, the actual allowable operating expenses are deducted from gross income.

010.02(C)OPERATING EXPENSES-FARM INCOME. For individuals who incur operating expenses related to farming, the operating expenses will be deducted from income.

010.02(D)OFFSET OF EARNINGS. If a household has a combination of farm, self-employment, or regular earned income, a loss from one source of income may be used to offset a gain from another source.

010.02(E)EXPENSES NOT DISREGARDED. The following expenses are not allowed as self-employment expenses:

(i) Net losses from previous tax years;

(ii) Federal, state, and local income taxes, money set aside for retirement purposes, and other work related personal expenses, such as transportation to and from work;

(iii) Depreciation; and

(iv) Depletion.

010.03EARNED INCOME DISREGARD. Ten percent of a household's gross earned income shall be disregarded after 12 months of continuous eligibility where there has been an open case, and at each subsequent redetermination.

010.04INCOME EXCLUSIONS. In determining a family's eligibility, the following income is excluded when determining eligibility

(1) Aid to Dependent Children grant;

(2) Money received from participation in the Foster Grandparent Program authorized by the ACTION Program;

(3) Money awarded by the Indian Claims Commission or the Court of Claims;

(4) Alaska Native Claims Settlement Act payments (to the extent that these payments are exempt from taxation under section 21(a) of the Act);

(5) Money received from the sale of property such as stocks, bonds, a house, or a car (unless the person was engaged in the business of selling the property in which case the net proceeds would be counted as income from self-employment);

(6) Work study for an undergraduate student;

(7) Withdrawals of bank deposits;

(8) Tax refunds;

(9) Earned Income Credits and Advanced Earned Income Credits;

(10) Gifts;

(11) Lump sum inheritances or insurance payments;

(12) Capital gains;

(13) The value of the coupon allotment under the Food Stamp Act of 1964, as amended;

(14) The value of U.S. Department of Agriculture (USDA) donated foods;

(15) The value of supplemental food assistance under the Child Nutrition Act of 1966 and the special food service program for children under the National School Lunch Act, as amended;

(16) Any payment received under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970;

(17) Earnings of a child age 18 or younger and in school; Note: Summer earnings of a child age 18 or younger are excluded if the worker verifies that the child plans to return to school in the fall.

(18) Loans;

(19) Any grant to a student for educational purposes;

(20) Adoption or guardianship subsidy payments;

(21) Home produce used for household consumption;

(22) Income received for work experience paid by a Title I Workforce Innovation and Opportunity Act program;

(23) Title I Workforce Innovation and Opportunity Act program allowance paid for supportive services such as transportation, meals, special tools, and clothing. This includes temporary Welfare-to-Work payments made through Workforce Development;

(24) Payments to AmeriCorps volunteers;

(25) Reimbursement from the Senior Companion Program;

(26) Low Income Energy Assistance funds;

(27) Housing assistance provided by Housing and Urban Development or by a local housing program;

(28) Assistance received under the Disaster Relief Act of 1974 or under a federal law because of a presidentially declared major disaster;

(29) Payments to a client participating in training or school attendance subsidized by the Division of Vocational Rehabilitation;

(30) Payments made by Veterans Administration under the Veterans Education and Employment Assistance Act for education expenses of a veteran;

(31) Payment made by an absent parent to a child care provider, landlord, or mortgage holder on behalf of the client;

(32) Benefits under Public Law 104-204 for children of Vietnam veterans who were born with spina bifida;

(33) Monetary allowance paid by the Veterans Administration under Public Law 106-419 to the child of a woman Vietnam veteran because of a birth defect associated with the veteran's service in Vietnam;

(34) Reimbursement for employment-related expenses such as mileage, lodging, or meals; and

(35) Military combat pay.

392 Neb. Admin. Code, ch. 2, § 010

Adopted effective 9/15/2020