Treatment of Income

Created on: 
Nov 15 2019

Online Processing

See ACES Screens and Online Pages for an example of pages or screens used in this chapter.

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

To determine if a type of income is excluded or disregarded when determining a client's benefit eligibility, see:

What is self-employment income?

Self-employment income is income that a client earns from running a business, performing a service, selling items they make, or reselling items to make a profit. A client is self-employed if they earn income without having an employer/employee relationship with the person who pays them. This includes when a client:
  • Has primary control of the way they do their work; or
  • Reports their income using IRS Schedule C, Schedule C-EZ, Schedule K-1, or Schedule SE.

For more information on self-employment income, see:

Online Processing

Where do I enter earned income?

Earned income is entered on the Earned Income page, which is at the client level, and is completed for the client that has the earned income. For more information on earned income, see:

Where do I enter unearned income?

Unearned income is entered on the Unearned Income page, which is at the client level, and is completed for the client that has the unearned income. For more information on unearned income, see:

How do I enter Social Security Income?

It is important to enter the correct income source code and claim number for Social Security income. ACES interfaces with Social Security and in some situations automatically updates the case based on the following interfaces:

When an incorrect income source code and/or claim number is entered, ACES adds the income according to information received from the BENDEX and/or SDX interface, as 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 and SDX interfaces run, both the income source code and claim number on the Unearned Income page are checked against the information Social Security has for that client. Any difference in income is updated automatically.

  1. To enter Social Security income, complete the following fields on the Unearned Income page:
  • Source field - Select the appropriate unearned income type from the drop down menu.
Note: The source code for Social Security benefits is determined by the client's Beneficiary Identification Code (BIC). For more information, see Beneficiary Identification Codes (BIC). BIC codes do not apply to Supplemental Security Income (SSI).
  • Claim Number field - Enter the [client's BIC], if appropriate. A client's BIC is the complete social security claim number under which a client receives benefits including the suffix.
  • Method field - Select Anticipated Monthly (AM) from the drop down menu.
  • Amount field - Enter the [monthly Social Security benefit amount].

How do I enter self-employment income?

For more information on how self-employment income is counted, see:

To enter self-employment income, complete the following on the Earned Income page:

  1. In the Employer section, enter the [name of the employer] in the Employer Name field. 
  2. In the Income section, complete the following mandatory fields:
  • Type field - Select Self-Employment Earned Income (SE) from the drop down menu.
  • Begin Date field - Enter the date [mm/dd/yyyy] the client started earning this self-employment income.
  • Method field - Select the appropriate budgeting method from the drop down menu.
  • Frequency field - Select the frequency of pay from the drop down menu.
  • Amount field - Enter the [amount client is receiving from self-employment] based on the budgeting method used.
  • Hours field - Enter the [number of hours the client is doing self-employment] based on the budgeting method used.
  1. In the Work Expenses section, click the Add link to display an Expense Type drop down menu.
  2. Select the appropriate Expense Type from the drop down menu.
  3. In the Amount field in the Work Expenses section, enter the [amount of the expense] and then select the appropriate valid value.
  4. Repeat steps three through five until all expenses are listed.
Note: If no self-employment deductions are entered, the system applies the standard 50% self-employment deduction.
Example 1: Jane Doe is self-employed and reports she earns, on average, $1000 per month. She has unverified self-employment expenses of $600 per month and verified and allowable self-employment expenses of $450 per month. Since her verified and allowable expenses are less than 50% of her gross income, she is given the new standard 50% employment expense deduction which would be $500, making her net income $1000 - 500 = $500. The 20% earned income disregard is applied leaving $400 as Jane's countable monthly earned income.
Example 2: At Jane’s recertification she states she still earns $1000 gross per month from her self-employment. She has verified and allowable self-employment expenses of $550 per month.  Since her verified and allowable self-employment expenses are over 50% of her gross self-employment income, her verified self-employment income expenses are deducted in their entirety from her gross $1000 - 550 = $450. The 20% earned income disregard is then applied leaving $360 as Jane’s countable monthly earned income.

 

See ACES Screens and Online Pages for an example of pages or screens used in this chapter.