Income verification — obtain and document verification

Verify and document all income used for eligibility or grant calculations. Require the client to provide requested verification or a signed release; when possible use documentary evidence (pay stubs, W-2s, tax returns, employer statements, bookkeeping for self-employment) or automated sources (IEVS TPQ1, Bendex). Record verification actions in the case file.

• Obtain client-supplied verification or signed release to specific source when client cannot provide documents.
• Use TPQ1/IEVS for Social Security verification and Bendex for participants' Social Security benefits.
• Require verification when income begins, ends, or is questionable; self-employed persons must keep business records.

Table of contents — informational only

This fragment is a table of contents and contains no provider action requirements.

Table of contents — no provider actions

This excerpt is a table of contents only and does not impose provider actions or requirements.

TOC entries — income categories (informational)

This table of contents lists income topic headings (income categories) for the FIP chapter; it is informational and does not impose actions by providers.

Adoption presubsidy — verify dates to determine recoupment

Issue: adoption presubsidy timing affects recoupment. Example actions: verify presubsidy approval and FIP cancellation effective dates and follow recoupment guidance — if presubsidy is approved with an effective date before the FIP cancelation, no recoupment is required; if approval occurs late with overlap, April FIP benefits may be subject to recoupment as illustrated.

• Confirm computer approval date and effective date for presubsidy.
• Compare presubsidy effective date to FIP cancellation effective date to determine recoupment.

Verify IDA deposits and manually adjust system entry

For Individual Development Account (IDA) deposits and income tax refund deductions, obtain verification of the deposit by the end of the report month or extended filing date; the ABC system cannot make the deduction so manually subtract the deposit before entering remaining income on BCW2.

• Request client verification of amount and date of deposit; accept client's statement about whose income was deposited unless questionable.
• If verification is not provided by deadline, do not allow deduction.
• Manually adjust income (ABC cannot compute) before BCW2 entry.

Verify representative payee disbursements with signed statements

When a representative payee lives outside the home, obtain a signed statement from both the payee and the beneficiary that verifies the amount actually made available to the applicant/participant; if the payee is a parent or lives with the household, count the total income.

• Obtain signed statements from payee and beneficiary to document amount made available.
• If payee is a parent or lives with household, count total payee income for eligibility.

Applicants — manually apply $50 support exemption before system entry

For applicants who receive current cash support while their application is pending, manually deduct the $50 current-support exemption before entering countable support on the system.

• Apply the $50 exemption to the month in which the applicant received the support.
• Manually deduct the exempt amount prior to system entry of countable support.

Establish date of receipt — use ICAR DISTR DATE + mailing/working days

When determining the date of receipt for support distributed by the Collection Services Center (CSC), check DISTR DATE on ICAR VPAYHIST and VPAYREC, add two working days and two mailing days to that date, and accept the applicant's plausible statement if disputed.

• View both VPAYHIST and VPAYREC screens as some payments appear only on VPAYREC.
• If applicant disputes calculated date, accept applicant's plausible receipt date.

Direct support refund enforcement — notice then 25% sanction on repeat

If a participant fails to refund direct support, inform the participant in writing on the first failure and consult the child support officer; on a second or subsequent failure initiate a 25% FIP grant reduction, exempt $50, and count the remainder as unearned income prospectively.

• First failure: send written notice and confer with assigned child support recovery officer.
• Second/subsequent failure: impose 25% grant reduction and count remainder as unearned income effective next month.
• Recover any excess FIP issued for months following the first month direct support was retained.

Lump-sum reporting — issue Comm. 24 and document details

When a participant reports receipt or possible receipt of a nonrecurring lump sum, issue pamphlet Comm. 24, One-Time Payments, and document issuance and key lump-sum details in the case record (date pamphlet issued, date received, how reported, amount, source of verification, how determined to be lump sum, and notice to client about effects).

• Issue Comm. 24 when participant reports or may receive a nonrecurring lump sum.
• Document date pamphlet issued, receipt date, reporting method, amount, verification source, lump-sum determination, and client notification.

Determine self-employment — use listed criteria and verify/document

To determine self-employment status, apply criteria such as whether the person establishes their own hours/territory/methods, is not required to report regularly, or files quarterly IRS reports; if unclear, obtain a written statement from the contracting person/agency or contact IRS, and document the income calculation in the case file.

• Ask client for a written statement or consult the IRS when employment status is unclear.
• If self-employed, require records and document net profit calculation and resource evaluation.

Garnished wages — no deduction allowed

Do not allow deductions for wages that are garnished; treat withheld wages per Diversion for Child Support rules instead.

• Disallow a deduction for garnished wages when computing countable income.
• Refer to Diversion for Child Support when wages are withheld for child support.

Diversion calculations — follow example steps and deduction order

Follow the procedural examples and calculation steps provided when diverting income to meet the needs of an ineligible child: compute payment-standard differences, subtract the ineligible child's income, apply work-expense (20%) and work-incentive (58%) deductions in the specified order, and use the numeric examples as guidance.

• Identify relevant payment standards for group sizes and compute the difference.
• Subtract the ineligible child's income, then apply 20% work expense and 58% work incentive deductions as shown in examples.
• Use iterative arithmetic from examples to finalize diverted amount.