Income Eligibility and Budgeting
DSHS Home Page
 
Search     for:
DSHS Home    Acronyms    Alerts    Screens    WAC Number Index    WCCC

Income Eligibility and Budgeting


Revised January 21, 2014



Effect of Income on Eligibility and Benefit Level

Treatment of Income

Income Allocation and Deeming

Income Deductions

Special Income Situations

 


EFFECT OF INCOME ON ELIGIBILITY AND BENEFIT LEVEL

How does ACES determine income eligibility?

How does ACES budget income?


How does ACES determine income eligibility?

·         ACES is programmed to determine financial eligibility for all programs based on prospective eligibility.

 

·         See EAZ Manual – WAC 388-450-0215 How does the department estimate my assistance unit's income to determine my eligibility and benefits?

How does ACES budget income?

·         ACES calculates and budgets income based on valid values entered in the Inc Mthd and Freq fields on the EARN and UNER screens.

 

·         See EAZ Manual – Income - Budgeting Chapter.

 

·         See EAZ Manual – Effect of income on Eligibility and Benefit Level Chapter.

 


TREATMENT OF INCOME

How do I enter earned income?

How do I enter unearned income?

How do I enter Social Security income?

What types of income are not used when figuring a client’s benefit eligibility?


How do I enter earned income?

·         Earned income is entered on the EARN screen which is a client level screen and is completed for the client that has the earned income. See Screen Descriptions - EARN - Earned Income Screen for instructions on entering earned income. See <F1> Help to determine the appropriate valid values.

 

·         For more information, see EAZ Manual – WAC 388-450-0030 What is earned income?

 

How do I enter unearned income?

·         Unearned income is entered on the UNER screen. See Screen Descriptions - UNER - Unearned Income Screen for instructions on entering unearned income. See <F1> Help to determine the correct valid value for the source code of the unearned income.

 

·         For more information, see EAZ Manual – WAC 388-450-0025 What is unearned income?

How do I enter Social Security Income?

·         It is important to enter the correct income source code for Social Security income. ACES interfaces with Social Security (BENDEX) and in some situations automatically updates the case based on this interface.  See Interface Data – Beneficiary and Earnings Data Exchange (BENDEX) for more information.

 

·         When an incorrect source code is entered, ACES adds the income from the correct source code because the system thinks this is a new income source. This may result in the client’s benefits being reduced or terminated because the income is entered twice.

 

·         When the BENDEX interface runs, both the source code and claim number on the UNER  screen are checked against the information Social Security has for that client. Any difference in income will be updated automatically on the UNER screen.

 

·         To enter Social Security income on the UNER screen, take the following steps:

 

1.    On the UNER screen:

 

o    In the Srce field, enter [the appropriate unearned income type code].  

 

¨        The source code for Social Security benefits is determined by the client's Beneficiary Identification Code (BIC).

 

¨        <F1> Help lists the correct source code to use based on the client's BIC.  See Beneficiary Identification Codes with Medical Source Codes Table.

 

o    In the Claim Number field, enter [the client’s Beneficiary Identification Code (BIC)]. A client's BIC is the complete social security claim number under which a client receives benefits including the suffix.

 

o    Income is computed and budgeted based on the valid values entered in the Income Method and Frequency fields.

What types of income are not used when figuring a client’s benefit eligibility?

·         To determine if a type of income is excluded or disregarded, see EAZ Manual – WAC 388-450-0015 What types of income does the department not use to figure out my benefits?

 


INCOME ALLOCATION AND DEEMING

Processing Alternative

Cash

145312

 

What is income allocation and deeming?

Where is allocated or deemed income entered?

How is income allocated when a minor parent is living with a parent?

How is income allocated for a financially responsible person excluded from the assistance unit because of alien status?


What is income allocation and deeming?

·         Allocation and deeming is the process of determining how much of a person’s income may be available to members of the household not included in the AU or to a person(s) for which a household member is financially responsible.

 

·         See EAZ Manual – WAC 388-450-0095 Allocation income--General and EAZ Manual – WAC 388-450-0100 Allocating income--Definitions.

 

Where is allocated or deemed income entered?

·         The DEEM screen is used to record information about deeming and allocation of income. 

 

·         The DEEM screen is a client level screen and must be called up. It follows the DPEX screen in the regular screen flow when there is information entered on the screen.

 

·         For situations in which entry is required on the DEEM screen, see EAZ Manual INCOME - ALLOCATION AND DEEMING Chapter.

 

How is income allocated when a minor parent is living with a parent?

·         For ACES to correctly allocate income for a case in which a minor parent is living with a parent the financial responsibility codes on the STAT screen must be correct and income coded on the correct person's income screen(s).

 

·         For this material, the minor parent's parent will be referred to as the 'major parent or major mom / dad'.

 

1.    Code the STAT screen as follows:

 

PERSON

REL

FINL RESP

Minor Parent

SE

PN / RE – Applicant/Recipient

Minor Parent Child

CH

PN / RE – Applicant/Recipient

Major Dad

OT

PM – Applicant Parent of a Minor Parent

Major Mom

OT

PM – Applicant Parent of a Minor Parent

 

   o    Siblings of a minor parent should not be included in the AU.

 

2.    If the major parent has income, the income must be entered on that parent's income screen.

 

·         ACES does the allocation process based on major and minor parent's Financial Responsibility (Finl Resp) codes and income. In this situation all household members must be included in the assistance unit (AU) or the income allocation will not be correct.

 

·         If the AU includes sibling(s) of the minor parent use the DEEM screen to record information so that ACES correctly allocates the income of the major parent. 

 

3.    On the DEEM screen, enter the number of [in-home dependent child(ren) (not including the minor parent)] in Number of IRS In-Home Dependent field on the DEEM screen of the major parent with income.

 

·         ACES adds this number to the number of persons listed on the STAT screen with Finl Resp code [PM] – Parent of a Minor Parent to determine the correct AU need standard.

How is income allocated for a financially responsible person excluded from the assistance unit because of alien status?

·         A financially responsible person not included in the AU because of alien status is allowed certain deductions from their earned income in computing the amount of the ineligible person's income available to eligible AU members.  See Financial Responsibility Codes – Categories of Financial Responsibility Codes.

 

·         See EAZ Manual – WAC 388-450-0116 How does the department count my income if I cannot get assistance because I am an alien?

 

1.    For a new application, code the ineligible household members as [PN] – Applicants on the STAT screen and ensure that all citizenship information on the DEM2 and ALAS screen is correct.

 

2.    When the case is finalized, ACES changes the Finl Resp code for ineligible member(s) to [UA] – Undocumented Alien Adult for adult members and [UC] – Undocumented Alien Child for children.

 

·         DO NOT ENTER ANYTHING ON THE DEEM SCREEN FOR THIS TYPE OF CASE.

 

3.    Enter the [ineligible household member's income] on their EARN screen.

 

o    Use the correct frequency code. All frequency codes apply to this type of case just as if the ineligible member were to receive benefits.

 

·         The amount of income available to the eligible AU members displays on the CAFI in the Gross Income section, Deem / Allocate Inc field.

 

·         If there is no income to allocate to the eligible household members after allowable deductions the amount in this field will be zero.

 


INCOME DEDUCTIONS

What income deductions are allowed?

 

How are child support payments entered as a deduction?

 

How are child care expenses entered as a deduction?

 

How are medical expenses entered as a deduction?


What income deductions are allowed?

·         To determine what income deductions or earned income incentives are allowed, see the following EAZ Manual WACs:

 

o    WAC 388-450-0170 TANF / SFA earned income incentive and deduction.

 

o    WAC 388-450-0175 GA-U earned income incentive and deduction.

 

o    WAC 388-450-0185 Does the department count all of my income to determine my eligibility and benefits for Basic Food?

 

o    WAC 388-450-0190 How does the department figure my shelter cost income deduction for Basic Food?

 

o    WAC 388-450-0195 Utility allowances for Basic Food Programs.

 

o    WAC 388-450-0200 Will the medical expenses of elderly persons of individuals with disabilities in my assistance unit be used as an income deduction for Basic Food?

How are child support payments entered as a deduction?

·         Child support payments allowed as a deduction are entered on the DEEM screen.

 

·         For more information on child support deductions, see EAZ Manual – WAC 388-450-0185 Does the department count all of my income to determine my eligibility and benefits for Basic Food?, and EAZ Manual – WAC 388-450-0105 Allocating the income of a financially responsible person included in the assistance unit.

 

·         On the DEEM screen:

 

1.    Number of Out-of-Home Dep field:  Enter the number of legal dependents living outside of the home for which the deemor is financially responsible. 

 

o    This field is used to code legal dependents living in the home for which the financially responsible person is paying legally obligated back child support expense.

 

o    Entry of at least [1] legal dependent is required in this field when a client pays court ordered child support expense.

 

2.    Deemor Exp Type/Amt/V field: Enter expense type, amount, and verification code.  See <F1> Help.

 

o    If a type code is not entered in the Exp Type field, the deeming calculation will not be done.

 

·         ACES allows the amount entered or the ceiling (One person Need Standard multiplied by the number of out of home dependents); whichever is less, when determining the allowable deemor expense.

 

·         For cash assistance AUs, the allowable deemor expense amount displays in the Deemor Expense field on the CAFI screen.

 

·         For medical assistance AUs, the Court Ordered Child Support deductions display in the Deduction field on the MAFI screen.

 

·         For food assistance AUs, the Court Ordered Child Support deductions display in the Child Support Deduct field on the FSFI screen.

How are child care expenses entered as a deduction?

·         The DPEX screen is used to record information about dependent child care expenses. 

 

·         This screen is a client level screen and must be called up. It follows the EARN / EDOC screen in the regular screen flow when there is information entered on the screen.

 

·         On the DPEX screen:

 

1.    Enter the [Provider name] and complete the Address, City, State, and Zip Code fields.

 

2.    Enter the client pointer of each dependent child for which expenses are paid in the Dep field.

 

3.    The system prefills Fname and MI fields with the first 7 characters of the dependent’s first name and middle initial. User entered data is not allowed in these fields.

 

4.    Enter the appropriate [valid value] in the Typ, Mth, Frq, Amts, and V fields. See <F1> Help.

 

·         ACESdetermines the amount of dependent care expense to be allowed in the Basic Food computation based on the client demographics on the STAT and valid values entered in the Typ (type), Mtd (method), and Frq (frequency) fields.

 

·         See EAZ Manual – WAC 388-450-0185 Does the department count all of my income to determine my eligibility and benefits for Basic Food.

 

How are medical expenses entered as a deduction?

·         The MEDX screen is used to enter allowable non-reimbursable medical expenses over $35 for AUs containing an eligible elderly or disabled member.  See Screen Descriptions - MEDX – Medical Expense Deduction Screen for instructions on entering medical expenses.

 

·         See EAZ Manual – WAC 388-450-0200 Will the medical expenses of elderly persons or individuals with disabilities in my assistance unit be used as an income deduction for Basic Food?

 

·         See EAZ Manual Income – Medical Expense Deduction For Basic Food Chart.

 


SPECIAL INCOME SITUATIONS

How do I enter cash gift income?

How do I enter Community Jobs (CJ) income?

How do I enter Income In-Kind - Lieu of Rent?

How do I enter student fellowship income?

How do I enter Non-Title IV and Non-BIA Work Study income?

How do I enter Native American Tribal Needs Based Payment (TN)?


How do I enter cash gift income?

·         See EAZ Manual – WAC 388-450-0065 Gifts – Cash and noncash for information on how cash gift income is treated and budgeted.

 

1.    On the UNER screen, enter the appropriate [source code] in the Srce field based on how the gift is to be budgeted. See <F1> Help.

 

2.    If the case unit includes TANF and Basic Food, enter both source codes [OA]  – Other Countable CA / MA (enter the gift amount less any exemption), and source code [OF] – Other Countable FS Only (enter the entire amount of the gift) so the correct amount is budgeted for each program.


NOTE:

If source code [CG] – Cash Gift is used, the amount entered will be deducted dollar for dollar for both TANF and Basic Food. ACES does not exclude the $30 per person / quarter exemption allowed per policy.


How do I enter Community Jobs (CJ) income?

1.    On the EARN screen:

 

o    Enter valid value [CJ] – Community Jobs Program in the income Type field.

 

o    Enter the [first of the month the client will receive their first pay check] in the Begin dt field.

 

·         ACES will exclude the first month’s CJ income for TANF and will budget if for Basic Food.  See EAZ Manual – WAC 388-450-0050 How does your participation in the community jobs (CJ) program affect your cash assistance and Basic Food benefits

 

How do I enter Income In-Kind - Lieu of Rent?

1.    On the EARN screen:

 

o    Enter valid value [IL] – Income in Kind – Lieu of Rent in the income Type field.

 

o    Enter the [amount of income the client receives as compensation in lieu of paying rent] in the Amt field.

 

2.    On the SHEL screen, enter the [client's entire shelter obligation, the amount the client would be expected to pay for rent if they were not working in exchange for a portion of the payment] in the Rent Amt field.

 

·         ACES uses the difference between the rent amount and the in lieu of rent amount as the rent amount to calculate Basic Food benefits.


EXAMPLE

Client’s rental obligation is $300.

 

She cleans apartments and collects rent so is only charged $100 per month for rent. The difference in the rental obligation and the amount she is charged is her income in-kind, earned in lieu of rent.

 

On the EARN screen, enter [IL] – Income in Kind – Lieu of Rent in the income Type field, [200.00] in the Amt field, and on the SHEL screen enter Rent Amt of [300.00]. ACES will use the difference between the two, ($100) as the rent amount to compute Basic Food benefits.


·         Cash assistance budgets in-kind income the same as earned income.

 

How do I enter student fellowship income?

·         Student fellowships can be either earned or unearned depending on the work requirements associated with a particular fellowship. There is no specific valid value for this income.

 

·         See EAZ Manual – WAC 388-450-0035 Educational Benefits for more information.

 

o    If the fellowship is earned income, on the EARN screen, enter valid value [OC] – Other Countable in the Income Type field.

 

o    If the fellowship is unearned income, on the UNER screen, enter the source code [AG] – Ed Assist – Graduate in the Srce field, as fellowships are only given at the graduate level.

 

How do I enter Non-Title IV and Non-BIA work study income?

·         See EAZ Manual – WAC 388-450-0035 Education Benefits for information on work study income budgeting.

 

1.    On the EARN screen:

 

o    Enter valid value [WS] – Countable Work Study (Non-Title IV and Non-BIA) in the income Type field.

 

o    Enter the [amount of the work study income] in the Amt field.

 

o    Enter the [expense to be excluded] in the Expense field using valid value [EE] – Education  Expense.

 

How do I enter Native American Tribal Needs Based Payment (TN)?

·         See EAZ Manual – WAC 388-450-0055 How does needs-based assistance from other agencies or organizations count against my benefits for information on Needs Based income budgeting.

 

·         In Online Case Actions (ACES 3G): (see How do I access Case Actions? )

 

1.    In an update mode, click Income page on the Navigation pane.

 

2.    Select the Add icon at the top of the page.

 

3.    In the pop-up window, under the income folder, select Unearned Income.

 

4.    Select the client from the drop down menu that the income is for.

 

5.    Click the Next > button.

 

6.    The Unearned Income page will display.

 

7.    Enter the detail information in the Income section.

 

o    In the source field select [TN] – Native American Needs Based Payment from the drop down menu.

 

o   The Begin Date field will display, enter the benefit start date (MM/DD/YYYY) or by selecting the date from the pop-up calendar.

 

o   Enter the budgeting method in the Method field.

 

o   Enter the [amount of the Native American Needs Based Payment] in the Amount field and Verification code.

 

8.    When all changes are complete, click Review in the Navigation pane.

 

9.    If there are no Errors on the Review summary, click Eligibility on the Navigation Pane.

 

10.    On the Eligibility summary page, a Details  link displays to the right of any AUs that are currently active. Click the Details  link.

 

o    Review the Eligibility Details for eash AU

 

o   If all looks correct, click Commit Changes.

 

11.    A window appears saying Session committed successfully.  Click OK.

 

12.    To exit the Case Actions page, click the Close button.

 

·         In ACES Mainframe:

 

1.    On the UNER  screen:

 

o    Enter [TN] – Native American Needs Based Payment in the Srce field.

 

o   Enter the [benefit start date] in the Lump Sm Date field.

 

o   Enter [appropriate budgeting method] in the INC Mthd field.

 

o   Enter the [amount of the Native American Need Based Payment] in the Amt field and verification code in the V field.


NOTE:

For income source code [TN] – Native American Needs Based Payment a start date is needed for ACES to do the correct computation and budgeting. ACES Mainframe will capture the start date from the Lump Sm Date field.

Modification Date: January 21, 2014