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Child Care Assistance - Countable Income - Oklahoma

All available income, except that required to be disregarded by law or DHS policy, is taken into consideration in determining eligibility for child care services. (See: Excluded Income for more information on income that is not considered when determining eligibility). Income is considered available after it has actually been received. Anticipated income from a new source is never considered until it is actually in hand and under the control of the individual.

Once gross income (monthly total of all countable household income) is computed, an earned income deduction is allowed for every person who is working and whose earnings are considered. A deduction is also given for the amount of any verified legally binding child support payments made to someone outside the child care household.

NOTE: If child care is being provided as part of a protective plan for the child, countable income can be disregarded.

The monthly gross income of the household is the sum of income received from the following sources:

· Wages. Wages include total money received for work performed as an employee including armed forces pay, commissions, tips, piece-rate payments, longevity payments, and cash bonuses before any deductions are made such as taxes, bonds, pensions, union dues, credit union payments, and cafeteria plans.

o    Only the portion of the cafeteria plan that you control is counted as income.

o    Reimbursements for expenses such as a uniform allowance or transportation costs, other than daily commuting, are subtracted from gross income.

o    Payments made for annual leave, sick leave, or severance pay are considered as earned income during the month such income is received whether paid during employment or at termination of employment.

o    Wages that are garnisheed or diverted and paid to a third party are also included.

· Self-employment. Earnings derived from a business enterprise you own is considered as self-employment income. Gross income is determined by calculating total gross receipts or sales, subtracting the costs of producing the income and allowing the earned income deduction listed on the DHS Child Care Eligibility/Rates Schedule. (Requires Acrobat Reader)

o    Costs of producing self-employment income. Allowable costs of producing self-employment income include, but are not limited to, the identifiable cost of labor, stock, raw material, seed and fertilizer, and interest payments to purchase income-producing property.

o    Items not considered as a cost of producing self-employment income are:

§     payments on the principal of the purchase price of income producing real estate and capital assets, equipment, machinery, and other durable goods;

§     net losses from previous periods;

§     federal, state, and local income taxes, money set aside for retirement purposes, and other work related personal expenses, such as meals and necessary transportation which are accounted for by the appropriate amount of earned income deduction listed on DHS Child Care Eligibility/Rates Schedule. (Requires Acrobat Reader); and

§     depreciation.

o    Monthly self-employment income. Self-employed income received on a monthly basis is normally averaged over a 12-month period. If however, the averaged amount does not accurately reflect the household's actual monthly circumstances because the household has experienced a substantial increase or decrease in business, the income is calculated based on anticipated earnings.

o    Seasonal self-employment. Self-employment income intended to meet the household's needs for only part of the year is averaged over the period of time it is intended to cover.

o    Annualized self-employment income. Self-employment income that represents a household's annual support is averaged over a 12-month period, even if the income is received in a short period of time. If the averaged amount does not accurately reflect the individual's actual monthly circumstances because the individual has experienced a substantial increase or decrease in business, self-employment income is based on anticipated earnings.

· Income from rental property. Income from rental property is considered income from self- employment. The household is only entitled to the earned income deduction if a member of the household is actively engaged in management of the property an average of at least 20 hours per week.

· Income from room and board. Payments from roomers or boarders are considered self-employment if the roomer or boarder is paying a reasonable amount.

· Self-employed farm income. Self-employed farm income is determined just like any other self-employed income except when the business expenses exceed the self-employment income. When the cost of producing self-employment income exceeds the income derived from self-employment as a farmer, such losses are offset against any other countable income in the household. When the annual net loss has been established, the loss is prorated by dividing by 12 for the monthly amount to be subtracted from the total countable income prior to subtraction of the earned income deduction. For purposes of this exception, to be considered a self-employed farmer, the farmer must receive or anticipate receiving annual gross proceeds of $1000 or more from the farming enterprise. Farming is defined as cultivating or operating a farm for profit either as owner or tenant. A farm includes stock, dairy, poultry, fish, fruit, and truck farms, and also plantations, ranches, ranges, and orchards. A fish farm is an area where fish are grown or raised and where they are artificially fed, protected, and the like and does not include an area where they are merely caught or harvested. A plant nursery is a farm for purposes of this definition.

· Training allowances. Training allowances for vocational and rehabilitative programs recognized by federal, state, or local governments such as the work incentive program and programs authorized by the Comprehensive Employment and Training Act are considered, to the extent they are not reimbursement. The individual must be actively involved in some type of work to be considered countable earnings.

· On-the-job training. Earned income from regular employment for on-the-job training is considered as any other earned income.

· Workforce Investment Act (WIA). Income earned in on-the-job training positions is considered earned income. This is on-the-job training provided for individuals 19 years of age or older. On-the-job training provided must be full-time positions, and there must be a contract between WIA and the employer for each individual position. This does not include classroom training and institutional training or intern assignments sponsored by WIA, even when an hourly amount is paid for such training.

· Title I Payments of Domestic Volunteer Services Act. Payments under Title I of the Domestic Volunteer Services Act of 1973 as amended [P.L. 93-113]. This includes income to Volunteers in Service to America, University Year for Action, and similar volunteer payments. Such income may be not be counted. See Excluded Income for specific exclusions.

· Earnings of children. Earned income of a minor parent is treated as adult earned income. Earnings of children 17 years of age and younger who are under the parental control of an adult household member are excluded as long as the child is attending school regularly. This exclusion continues to apply during temporary interruptions in school attendance due to semester or vacation breaks, provided the child's enrollment resumes following the break.

· Assistance payments. Assistance payments include state means tested programs such as Temporary Assistance for Needy Families (TANF) and State Supplemental Payments to the aged, blind, or disabled, and Refugee Cash Assistance.

· Pensions, disability, and Social Security benefits. Annuities, pensions, retirement benefits, disability benefits from either government or private sources, or Social Security survivor benefits are considered unearned income.

· Supplemental Security Income (SSI). SSI is considered as unearned income.

· Unemployment and worker's compensation. Income from unemployment insurance benefits or worker's compensation is counted as unearned income.

· Child support, court ordered child care, and alimony. Child support, child care payments, and alimony payments, whether court ordered or voluntary, which are made directly to the household from non-household members are counted as unearned income. If a child care payment is paid directly to the child care provider, it is not considered income for you. It is considered as an additional co-payment that must be met before DHS makes a subsidy payment to the provider. Any other payment made to a third party for a household expense must be considered as income when a court order directs that the payment be made to the household. Payments for medical support are excluded.

· Veterans' compensation, pensions, or military allotments. Annuities, pensions, disability compensation, military allotments, servicemen dependents' allowances, subsistence allowances paid to veterans or their dependents for educational purposes, and similar payments are considered as unearned income. Subtract any school expenses associated with receipt of this income. Income is averaged over the period it is intended to cover.

· Contributions. Appreciable contributions recurrently received in cash are considered as unearned income except in instances where the contribution is not made directly to the recipient. To be appreciable, a contribution must exceed $30 per calendar quarter per individual.

· Dividends, interest, minerals, and royalties. Dividends, interest income, income from minerals, royalties, and the like are considered as unearned income. When income from these sources is received irregularly or in varied amounts, it is averaged over 12 months. Income from royalties is treated as unearned, self-employment income.

· Educational grants. Educational grants that are not covered by Title IV of the Higher Education Act or the Bureau of Indian Affairs Student Assistance programs are considered as unearned income to the extent they are available to meet current living expenses. Subtract any school expenses associated with receipt of this income. Income is averaged over the period it is intended to cover.

See:

Child Care Assistance Financial Eligibility

Child Care Assistance Eligibility

Child Care Eligibility/Rates Schedule. (Requires Acrobat Reader)

Child Care Assistance Overview

Welcome and Introduction to Benefits in Oklahoma

Source:

OK Department of Human Services Policy

· 340:40-7-10, General provisions regarding income

· 340:40-7-11, Sources of income considered

· 340:40-7-13, Computation of income

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