Some resources not already mentioned are excluded in determining eligibility.
Certain items owned by the budget group are not counted. These include items used for day-to-day living, such as the following:
Common residence furnishings
Major appliances
Items used to equip, provide, and maintain a home for the budget group
Personal items of limited value, including clothing, children’s toys, and wedding and engagement rings
Pets
Family heirlooms
Farm equipment or farm animals
Equipment needed for employment, rehabilitation, or self-care
NOTE: Exclusion of equipment needed for employment does not apply to a vehicle, even if that vehicle is used for self employment. See Section 140.5 for information on evaluating vehicles as resources.
The following benefits, financial assistance, or funds are also excluded:
“Uniform Transfer to Minors Act” accounts, previously known as “Uniform Gifts to Minors Act” (UTMA or UGMA, also known as PUGMA or PUTMA in Pennsylvania)
The CAO must not count these funds as income or a resource. The child is the owner of the account and does not have access to the funds until age 21. The custodian, who establishes or manages the child’s account, is not the owner. The CAO does not consider the funds legally available, even if the custodian is a legally responsible relative (LRR). DHS does not require the funds to be withdrawn. If the custodian does withdraw funds for the child’s needs, the CAO must consider the funds as the child’s unearned income in the month withdrawn. When the child turns 21, the CAO must considers any funds remaining in the accounts as an available resource.
Payments under the Economic Stimulus Act of 2008 (P.L. 110-185)
When determining eligibility, the CAO must exclude these payments as income and as a resource. These payments are not tax refunds.
Retroactive assistance payments issued to correct underpayments.
Retroactive assistance payments issued as a result of a prehearing conference, a fair hearing decision, or a court order.
Any retroactive payment issued must be excluded for only two calendar months: the month it is received and the following month. Any money left after the second month must be added to the other resources of the budget group. The budget group must provide verification of how and when the money was used.
Examples:
Mrs. Rebert and her three children receive TANF. She is notified that she will receive $90 on January 2 as reimbursement for an underpayment. On February 2, she provides the CAO with verification that she has paid a $90 electric bill. The CAO does not need to take any further action.
Reminder: Any interest earned on the bank account must be excluded as income in the month of receipt. See Chapter 150.
Educational assistance in the form of loans, grants, or scholarships
Donations of goods and services provided by a person or agency, including third-party payments made to a vendor on behalf of the budget group. This includes home energy assistance.
Benefits received from the Low-Income Home Energy Assistance Program (LIHEAP).
Family savings accounts (FSAs) established under the Job Enhancement Act (73 P.S. §§ 400.2101–400.2103)
FSAs are accounts set up at financial institutions that are approved by DCED and maintained by the saver as part of an approved plan to accumulate funds for an eligible use. An eligible use is defined as education, purchase of a home, business start-up, or any other use as outlined in an approved plan. Savings are matched in an amount equal to one hundred percent of the amount deposited into the account, subject to a maximum of $1,000 per year; up to $2,000 in two years.
Participants must sign a contract with a local service provider to establish an approved FSA. CAOs should request to see the contract or a copy of the contract as verification of the account. A list of participating service providers is included in Appendix B.
Withdrawals from an FSA in accordance with the approved plan will be made payable to the legal entity or provider, not the client. Monies withdrawn from an FSA that are used for a purpose unrelated to the approved savings plan must be added to the budget group’s resource amount and used to determine continued eligibility beginning with the date of withdrawal.
Exception: Monies withdrawn to pay for educational expenses continue to be disregarded for purposes of cash eligibility.
The federal earned income credit (EIC) and any income tax refund, including PA tax forgiveness
Effective May 22, 2006, all tax refunds, EIC, and PA tax forgiveness, are excluded as income and as a resource for Cash Assistance. If an applicant or recipient who is over the resource limit provides verification that the excess resources are due to a tax refund, the CAO must subtract the refund amount from the person's resources and review eligibility.
Example:
At her TANF renewal on October 11, 2006, Mrs. Roberts presents a checking account statement that verifies a current balance of $2,500. When questioned by the worker, Mrs. Roberts confirms that most of the checking account balance is from her 2005 tax refund. On October 18, 2006, Mrs. Roberts provides a copy of her 2005 tax return and the checking account statement from May to verify the direct deposit of $2,300 for her tax refund by the U.S. Department of Treasury on May 21, 2005. It is excluded, and the countable resources are determined as follows:
|
Checking account balance: |
$2,500 |
|
2005 tax refund including EIC: |
-2,300 |
|
Countable resources = |
$200 |
Disaster relief payments made under the Stafford Act, including federal disaster relief and comparable assistance provided by states, local governments, and disaster assistance organizations
42 U.S.C. § 5155(d); 62 P.S. 432.12(a)
This includes rental assistance funds provided by the Federal Emergency Management Agency (FEMA). Funds from FEMA for housing needs are not counted as income or as a resource in determining eligibility for welfare, income assistance, or income-tested benefit programs funded by the federal government.
The client should continue to keep the funds in a separate account. If the funds are not used, FEMA will require repayment.
Department of Veterans Affairs payments to children of Vietnam veterans who are born with spina bifida or to children of women veterans with certain other covered birth defects.
SEED (Saving for Education, Entrepreneurship, and Downpayment) Account funds and any interest accumulated on these accounts.
These accounts are “seeded” with money at a qualified child’s birth. Money may be deposited at certain milestones, such as achieving an educational goal, and funds may be matched up to a certain amount. Currently, SEED is a demonstration project maintained by the PfP (People for People) Credit Union. All such accounts are savings accounts held at PfP Credit Unions and have restricted access. Money may be released to the child at age 18 to be used for approved purposes of post-secondary education or career-specific training, to purchase a home, or to start a business.
A signing bonus considered to be a loan agreement that must be repaid if the recipient does not meet certain obligations of the agreement
The CAO must verify that the bonus is a loan. The signing bonus is excluded as a resource whether or not the loan is forgiven. See Section 150.5 for the treatment of signing bonuses as income.
Example: John Adams starts work at a tire company. He is given a signing bonus of $2,000 and he agrees to stay with the company for six months. The agreement states that the bonus is a loan that must be repaid if he leaves employment before the six-month period is over. Mr. Adams puts the money in his savings account, and the $2,000 signing bonus amount is excluded as a resource.
Mr. Adams and his family move to another county and he leaves the tire company. He applies for TANF, and the CAO reviews the signing bonus document stating that the bonus was a loan. The CAO excludes the $2,000 as a resource, whether or not John had to pay back the signing bonus.
Reviewed December 11, 2017. Reissued April 30, 2015; replacing September 20, 2012