933.01 Treatment of Specific Income Types (FAM)

SR 20-23 Dated 08/20

Previous Policy

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Countable income is determined at the initial application and converted to a monthly amount.

Income that is annualized at initial application will determine the cost share for the 12-month eligibility period and will not be recalculated during the 12-month eligibility period except when a parent experiences a permanent job loss.

 

Earned Income

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When a parent indicates consistent and regular employment, use the income from the most recent consecutive 4-week period to obtain a monthly average.

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If the income is fluctuating, and it is not possible to obtain an accurate average based on the most recent consecutive 4-week period, use up to 8 weeks of income received in the most recent consecutive 8-week period and omit any earnings received in any atypical week to obtain a monthly average. Examples of atypical weeks include: wait staff covering extra shifts; retail employment with extra holiday hours; or a nurse covering additional shifts.

Paid internships or work study count as income

 

Calculated In-Kind Compensation

This represents compensation received for work performed while employed by another or self-employed in place of, or in addition to, wages, profit, or payment in cash. Assign a dollar value to in-kind income received on a regular basis. Determine the dollar value using one of the following methods:

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Employer statement indicating the frequency and dollar value of the in-kind income;

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Multiply the number of hours worked times the approximate hourly wage as provided by the employer; or

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Multiply the number of hours worked times the current minimum wage, if self-employed or the employer is unable to provide an approximate hourly wage.

 

Unearned Income

Unearned income is averaged when it varies from month to month such as child support, alimony, disability payments, or other sources of unearned income due to changes in the frequency or amount of receipt.

 

Self-employment Income

Self-employment income is the dollar value of in-kind benefits or the income received as compensation from a self-employment enterprise such as sales, services consulting, or farming.

Count the monthly net income from self-employment after deducting business expenses allowed by the Internal Revenue Service for federal income tax purposes. Earned income is annualized when the parent is self-employed.

Do not allow depreciation as a deduction when calculating self-employment income.

 

References: He-C 6910.06(g)(h)(i), He-C 6910.09(f), RSA 161:2,XII, RSA 167:80,IV(b) and (i), RSA 167:82,VI, RSA 167:83,II(c) and (o), 45 CFR 98.20