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FIP Eligibility - Income Deductions - Iowa

Allowable Income Deductions for the Net Income Standards and Payment Rates.

From earned income:

·      20% earned income deduction (for Tests 2 and 3)

·      50% work incentive deduction (for Test 3, if Test 2 is met)

(See Net Income Standards and Payment Rates for information about the Tests.)

FIP recipients who incur child care expenses while they work may receive help with those costs through the Department’s Child Care Assistance program.

From earned or unearned income ( for Tests 2 and 3):

·      Applicable diversions for persons not in the home (e.g., verified child support payments for a child not living in the home)

·      Applicable diversions for the needs of ineligible or excluded persons in the home

From unearned income ( for Tests 2 and 3):

·      Taxes (FICA, state or federal income taxes when actually withheld)

·      Income-producing costs from investments (e.g., stock or bonds)

·      Income-producing costs from nonrecurring lump sum (e.g., fees charged by an attorney for producing a lawsuit settlement)

See Also:

·      Income Exclusions for meeting Gross Income Limits and Net Income Standards

·      Gross Income Limits for FIP Eligibility

·      Net Income Standards for FIP Eligibility and FIP Payment Rates

·      FIP Resource Limits

·      Non-Financial FIP Eligibility Criteria

·      Financial FIP Eligibility Criteria

·      FIP Overview

·      Welcome and Introduction to Benefits in Iowa

Source: Iowa DHS Employees’ Policy Manual

Title 4, Family Investment Program (FIP)

·     Chapter E, Income, Deductions

Legal reference: 441 IAC 41.27(1); 441 IAC 41.27(2); 441 IAC 41.27(4)

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