The CAO will not count income from certain sources in determining a budget group's eligibility and monthly assistance payment.
The CAO will verify and record the reason for excluding certain income. The CAO may need to verify the amount of the excluded income.
The following income is excluded:
1. Any Income Tax Refund and the Earned Income Credit (EIC)
The CAO must not count tax refunds, including PA Tax Forgiveness and EIC, as income or as a resource.
2. Earnings of a Child (see Appendix A, for the desk guide)
NOTE: The CAO will not count a “Uniform Transfer to Minors Act” (UTMA) account. These accounts were formerly known as “Uniform Gifts to Minors Act” (UGMA). They are also known as PUGMA or PUTMA in Pennsylvania. These funds do not count as income or as a resource. A child who is the owner of the account cannot access the funds until age 21. The custodian who establishes and/or manages the child’s account is not the owner. The CAO will 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 DHS does not require the funds to be withdrawn.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does withdraw funds for the child’s needs, the CAO will consider the funds as the child’s unearned income in the month withdrawn. When the child turns 21, the CAO will consider funds that are still in the account(s) to be an available resource.
TANF Child: The CAO will not count the earnings of a TANF dependent child who is:
A full-time student according to Chapter 114, Students.
55 Pa. Code § 183.81(1) (i)(A)
A part-time student working less than an average of 30 hours a week.
55 Pa. Code § 183.81(1) (i)(B)
NOTE: The child’s employment status is determined only during the time school is in session. If the child works full-time during vacation, they are still considered part-time if it is reasonably expected that they will return to school.
In Job Corps, regardless of student status.
Not a student, age 17 or younger, and working under a WIA program.
NOTE: This exemption is for a maximum of six calendar months per calendar year.
Reminder: The CAO will count the earned income of a child who is a part-time student working full-time 30 or more hours per week in a calendar month.
Example: Mrs. J. applies for assistance for herself and two children. Both children are full-time students. Her son, Eric, has a part-time job. His income is not considered when computing the monthly assistance payment amount because he is a full-time student. When his hours are cut at his job for the summer, Eric gets a ten-week summer job through WIA. He returns to school in September. The WIA employment has ended, but he still has the part-time job. The CAO does not consider his earnings when determining the monthly assistance payment, because Eric is a full-time student.
Eric has difficulty in school and becomes a part-time student. He begins a new full-time job on January 1. His earnings count when computing the monthly assistance payment amount because he is now a part-time student.
NOTE: During summer vacation, the CAO continues to consider Eric’s income when determining the budget group’s monthly assistance payment, because income is counted the same during school vacations as it is during the regular school year.
In September, Eric's hours are cut. He is still a part-time student. The CAO will exempt Eric's income when determining the monthly assistance payment, because he is a part-time student working part-time.
3. Educational Assistance
The CAO will not count educational assistance from scholarships, grants, or loans. This includes the following:
In-kind scholarships that include free or reduced room and board.
Work-study income.
4. Funds Subject to Reimbursement to DHS
The CAO will not count any money for which a person signs a DHS reimbursement form acknowledging repayment of the amount of assistance received. The reimbursement amount counts as a deduction when the funds are actually received. See Chapter 157.
5. Medical Assistance Co-payment Refunds
The CAO will not count a refund received by the person from DHS because they are paid more than the amount required as a copayment for Medical Assistance services.
6. Retroactive Assistance Payments
The CAO will not count money authorized to correct underpayments to current recipients as income. This money does not count in the month paid or in the next month.
NOTE: Any money left from the payment is considered a resource in subsequent months.
7. Corrective Assistance Payments
The CAO will not count a corrective assistance payment in the month paid or the next month when the corrective payment is authorized retroactively because of:
A prehearing conference,
A fair hearing decision.
A court order.
Reimbursement(s) from subsidized childcare provider.
NOTE: Any money left from the payment is considered a resource in subsequent months.
8. Support Payment Refunds for Suspension or Application Months
The CAO will not count support refunded to a person because of a one month suspension of the monthly assistance payment when there is an assigned court order or a voluntary support payment the Commonwealth is collecting. See Section 150.311 and Appendix B, Excess Over Unreimbursed Assistance (EOURA) Refunds.
9. Income-in-kind payments
The CAO will not count income in-kind, such as shelter or other benefits provided at a reduced rate or at no charge in exchange for services rendered.
NOTE: The person must be employed by and sheltered by the same person for the CAO to treat wages in exchange for shelter as excluded income in-kind.
Examples:
Example 1: Fred and Ethel and their two children live in a house her father owns. Their rent is $400 a month. Fred works for Ethel’s father earning $400 per month. The father-in-law does not pay Fred the $400 but keeps it as payment for the rent. The $400 per month is excluded as income. It is not considered earned income. It is income in-kind because it is kept by the landlord (father-in-law) in exchange for housing.
Example 2:Fred and Ethel and their two children live in a house owned but not occupied by Ethel’s grandmother. Their rent is $400 a month. Fred works for Ethel’s father and earns $400 per month. Ethel’s father does not give the money to Fred but gives it to Ethel’s grandmother, who is the landlord. Fred is not providing a service to his landlord in exchange for rent. The $400 is considered earned income.
10. Workforce Investment Act (WIA)
The CAO will not count money a person receives from WIA for specific needs or supportive services such as child care, transportation, or meals.
11. Cash Assistance from Public or Private Agencies
The CAO will not count money a person receives from a public or private agency or organization if any of the following applies:
The donation is meant for a purpose different from what the assistance allowance provides for.
The donation is not provided for by the assistance allowance.
The value of the donation when added to the assistance allowance and other budget group income is not equal to or greater than the applicable standard of need. See Chapter 168, Determining Eligibility and Payment Amount, Appendix B.
NOTE: The CAO will consider money received by a veteran participating in the Compensated Work Therapy program as a donation. It is excluded income for cash assistance.
12. In-kind Donations and Vendor Payments
The CAO will not count a payment made by a third party to a vendor on behalf of a budget group. The CAO will not count goods and services provided in-kind for a budget group by a person or a public or private agency.
Examples:
Example 1: Ms. Brown, a TANF parent with two children, is given clothing for the children by the school nurse. No value is placed on the donation of clothing. It does not affect the monthly assistance payment amount.
Example 2: Mr. Smith and his family wish to rent an apartment. His mother pays the required security deposit for the apartment directly to the landlord. This donation does not affect the amount of the monthly assistance payment.
13. Relocation Assistance and Real Property Acquisition
The CAO will not count money received under Subchapter II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. Sections 4621–4638, specifically Section 4636).
14. Gifts, Loans, or Borrowed Money
The CAO will not count money borrowed from a person other than an LRR. The loan must have a repayment statement. Loans include, but are not limited to a car or personal service loans.
The loan must be bona fide, and the person must provide documentation of a repayment agreement.
The CAO will not count small amounts of money given occasionally as a gift from any source. The exempt amount may not be more than $30 per budget group member per calendar quarter. Calendar quarters begin in January, April, July, and October. If the money is for more than one person, the CAO will divide the amount of money given amongst the number of persons it is meant for. If the amount of the money is more than $30, the CAO will count only the amount over $30 per budget group member. See Section 150.32 Contributions.
15. Congregate Meal
The CAO will not count benefits received under Part C, Congregate Nutrition Service of the Older Americans Act (42 U.S.C. Section 3030e).
16. Payments Made to Volunteers
The CAO will not count payments for volunteer work in VISTA (Volunteers in Service to America), Service Learning Programs, and Special Volunteer Programs. These payments to volunteers are made under Subchapter I of the Domestic Volunteer Services Act, as amended (42 U.S.C.A. Sections 4951 - 4993).
NOTE: The CAO will count the payments given to volunteers in programs under the National and Community Service Act of 1993, including AmeriCorps, Senior Corps, Youth Corps, and Learn and Serve Programs. “AmeriCorps” usually refers to AmeriCorps*State and National and to AmeriCorps*NCCC (National Civilian Community Corps).
Exception: The CAO will exclude payments from AmeriCorps*VISTA. The CAO should ask for verification to determine if the person is a volunteer in the AmeriCorps program or the AmeriCorps*VISTA program. AmeriCorps and AmeriCorps*VISTA are two separate programs although both are part of the Corporation for National and Community Service.
The CAO will not count payments for supportive services or reimbursement of out-of-pocket expenses made to volunteers serving as foster grandparents, senior health aides, senior companions, and any other programs established under Subchapter II of the Domestic Volunteer Services Act, as amended (42 U.S.C.A. Sections 5001 - 5023).
NOTE: To be exempt, payments must result in an amount that is less than Pennsylvania's minimum hourly wage when the payment is divided by the number of hours served.
55 Pa. Code § 183.81(15) & 45 CFR 233.20
17. Senior Citizen Rebate and Assistance Act
The CAO will not count money received under provisions of the Senior Citizen Rebate and Assistance Act (72 P.S. Sections 4751-1 - 4751-12).
Example: Property Tax/Rent Rebates.
18. Adoption Subsidies
The CAO will not count federal subsidies received for a special needs child under Title IV-E of the Adoption Assistance and Child Welfare Act of 1980 (P.L. 96-272) and state subsidies received under the Act of June 13, 1967 (P.L. 31, No. 21) (62 P.S. Sections 771 - 774), known as the Adoption Opportunity Act as long as the child for whom payment is made is not a member of the budget group.
19. Foster Care Payments
The CAO will not count money paid by an approved child placement agency to a person for providing foster care for a child if the money is received through Title IV-E of the Adoption Assistance and Child Welfare Act of 1980 (P.L. 96-272).
The CAO will not count money received through Article VII of the Public Welfare code (62 P.S. Sections 701 - 774).
20. Food Assistance and Free School Lunches
The CAO will not count the value of supplemental food assistance received under the Child Nutrition Act of 1966 (42 U.S.C.A. Sections 1771 - 1789) and the special food services program for children under the National School Lunch Act (42 U.S.C. Sections 1751 - 1769c).
These programs include free lunch and breakfast programs, and Women, Infants, and Children (WIC) benefits.
21. SNAP Benefits
The CAO will not count the value of Supplemental Nutrition Assistance Program (SNAP) assistance received by a household enrolled in SNAP. Do not count money received in lieu of food stamps under the Nutrition Assistance Program.
22. USDA Surplus Food Donation
The CAO will not count the value of surplus commodities donated by the United States Department of Agriculture.
23. Home Produce
The CAO will not count the value of home produce if it is used by the budget group for its consumption.
24. Experimental Housing Allowance Program
The CAO will not count payments from the Experimental Housing Allowance Program (EHAP) that are made under annual contributions contracts entered into before January 1, 1975.
The CAO will not count payments covered by the United States Housing Act of 1937 (42 U.S.C.A. Sections 1437 - 1437q).
25. Housing Subsidies
The CAO will not count subsidies paid for housing or utilities under Section 8 of the United States Housing Act of 1937 (42 U.S.C.A. Section 1437f).
The CAO will not count housing rehabilitation grants under the Housing and Community Development Act of 1974 (Pub. L. No. 93-383, 88 Stat. 633).
26. LIHEAP
The CAO will not count services or payments for home energy assistance received under the Low-Income Home Energy Assistance Program (LIHEAP).
27. Payments to Indian Tribes
The CAO will not count the following payments made to Indian tribes:
The tax-free portion of payments made under the Alaska Native Claims Settlement Act (43 U.S.C.A. Sections 1601-1628).
Funds distributed per capita to or held in trust for members of an Indian tribe under 25 U.S.C.A. Sections 1261-1265 and 25 U.S.C.A. Sections 1401-1407.
Receipts distributed to members of certain Indian tribes referred to in 25 U.S.C.A. Section 459d (Effective October 17, 1975).
Interest and investment income accrued on Indian Judgment funds held in trust under 25 U.S.C.A. Sections 1402 - 1405, 1407, and 1408, (Effective January 12, 1983).
28. Home Energy Assistance Benefits
The CAO will not count home energy assistance (HEA) benefits furnished in-kind by a private, nonprofit organization or furnished as cash or in-kind assistance by:
A certified supplier of home heating oil or gas.
A certified entity providing home energy whose revenues are primarily on a rate-of-return basis and regulated by the Public Utility Commission.
A certified municipal utility providing home energy.
HEA benefits may include payments for heating or cooling, storm doors, weatherization services, blankets and the like.
HEA benefits do not include food or clothing.
29. Support or Maintenance Assistance Benefits
The CAO will not count in-kind support or maintenance assistance (SMA)benefits provided by a private, nonprofit organization. SMA benefits include in-kind provisions of food, clothing, temporary emergency shelter, furniture, appliances, and the like.
30. Support Pass-Through
The CAO will not count a portion of current court-ordered or voluntary support received by the budget group in a month, depending on the number of children in the family. If there is one child in the family, the CAO must not count the first $100 of current support received by the budget group in the month. If there are two or more children in the family, the CAO must not count the first $200 of current support received by the budget group in the month.
31. Non-Service-Connected Veterans Benefits
The CAO will not deem or count the amount of increased non-service connected veterans benefits available under the Veterans Pension Act of 1959 (38 U.S.C. Sections 521-525). The person does not have to apply for the increase if they:
Qualified for veterans benefits on June 30, 1960; and
Chose not to receive the increase in benefits provided under the Veterans Pension Act of 1959.
32. Income of an SSI Recipient
The CAO will not include a person actively receiving SSI and/or SSP in the budget group. The CAO will not count or deem earned or unearned income of the SSI and/or SSP recipient when determining the applicant or recipient’s needs. Payments made by the SSI and/or SSP person to the budget group for goods, services, room or board count as earned income. See Chapter 152, Self-Employment Income.
*Note: Earned or unearned income of a Special SSI recipient is counted toward the Cash budget.
33. Disaster Relief Income
The CAO will exclude Disaster Relief payments as income when determining cash eligibility and benefit levels. This includes:
Federal major disaster and emergency assistance.
Comparable assistance from states, local governments and disaster assistance organizations.
Any interest earned on disaster relief income.
Disaster Unemployment Assistance (DUA).
Individuals who are unable to work as a direct result of a disaster may be eligible for DUA only if they do not qualify for regular unemployment benefits.
NOTE: Exclude as a resource any Federal Emergency Management Agency (FEMA) funds for rental assistance. Instruct persons to keep FEMA funds in a separate account. FEMA requires unused funds to be repaid.
34. Children of Vietnam Veterans with Spina Bifida
The CAO will exclude payments made by the Department of Veterans Affairs to:
Children of Vietnam veterans who are born with spina bifida; and
Children of female veterans of Vietnam with certain other birth defects.
38 U.S.C. § 1802 & 38 U.S.C. § 1812
35. Subsidized Permanent Legal Custodianship Program (SPLC)
The CAO will not count payments provided for permanent placement of a child under the Subsidized Permanent Legal Custodianship Program (SPLC) as long as the child is not included in the budget group.
The permanent legal custodian may receive a subsidy to meet the needs of the child under this program established as a result of the Federal Adoption and Safe Families Act of 1997 (P.L. 105-89).
The presence of the child in the household may establish TANF eligibility for the custodian as a specified relative if all other eligibility conditions are met. Do not count the subsidy as income to the custodian.
36. Interest
The CAO will not count interest earned on savings bonds, checking accounts, savings accounts, NOW and Super NOW accounts, money market accounts, certificates of deposit (CDs), Christmas and vacation club accounts as unearned income or as a resource in the month when it is received. Interest that is still in an account after the month when it is received is considered a resource. See Section 140.3.
Exception: Interest income from a Family Savings Account, a Savings for Education, Entrepreneurship and Downpayment (SEED) Account or an educational savings account is always excluded, both as income and as a resource. See Sections 140.8 and 140.9.
37. Signing Bonus
The CAO excludes a signing bonus if the bonus is considered a loan from the employer that must be repaid if the recipient does not meet the agreement conditions. The CAO will verify this bonus is a loan. See Cash Assistance Handbook, Section 140.8, Other Excluded Income, for the treatment of a signing bonus as a resource.
Example: Meg Gray, a TANF recipient, starts working and receives a signing bonus of $3,000. When she reports her job to the CAO, she provides the signed agreement verifying that the bonus is a loan that she will only have to pay back if she does not keep her job for 12 months. The CAO does not count the signing bonus as unearned income when adjusting Meg’s income to determine if she is still eligible for TANF.
38. Economic Stimulus Payments
The CAO will not count a one-time Recovery Rebate or Economic Stimulus Payment made under the Economic Stimulus Act of 2008 (P.L. 110-185) or the CARES Act of 2020 (P.L. 116.136) known as Recovery Rebates or as Economic Stimulus Payments as a resource or as income when determining eligibility for Cash Assistance. These payments are not tax refunds.
39. Uniform Transfer to Minors Act (Uniform Gifts to Minors Act)
See Section 150.33, Income of a Child.
40. Simmons v. Snider Settlement reimbursement check
The issuance of these checks are based on a November 15, 2007 Commonwealth Court ruling ordering the distribution of remaining funds relative to the Henry Simmons class action lawsuit (Simmons v. Snider Settlement Program). These checks are a final distribution to former GA recipients who received interim assistance while their SSI application was being appealed. The amounts represent reimbursements for legal fees.
These payments have no effect on cash eligibility.
41. ABLE Accounts
The CAO must exclude one Achieving a Better Life Experience (ABLE) accounts, and any contributions to, interest earned on, or distribution from, such accounts. ABLE accounts are tax-favored savings accounts which provide secure funding for individuals who meet the disability or blindness criteria.
The full balance of ABLE accounts is excluded for TANF, MA, SNAP, LTC and HCBS programs. SSI recipients with ABLE accounts have a $100,000 limit. If an SSI recipient exceeds the $100,000 limit, the excess funds count towards the standard SSI resource limits. Increase in the value due to interest or dividends received do not count as income.
Verification of an ABLE account can be obtained from the following:
o Account number with a format as 91XXXXXXX-01
o The name of the designated beneficiary i.e., account owner
o Name of individual with signature authority
o Date opened
o Account balance
Withdrawals that are spent on qualified disability expenses (QDE) are to be excluded as a resource. No additional documentation is required if it is stated that the expense is a QDE. If an expense is questionable, verification can be requested. Acceptable expenses include; education, transportation, employment training support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses and housing.
42. Federal Pandemic Unemployment Compensation (FPUC)
Due to the Coronavirus Pandemic, the CARES Act of 2020 introduced FPUC. Individuals who qualify for traditional UC are entitled to an additional benefit. The maximum benefit amount is $600 per week. This is unearned income and is excluded from Cash Assistance eligibility.
Revised September 14, 2020, replacing November 2, 2018.