.Purpose

Policy

Background

Release Date:

November 17, 2020

Definitions

Requirements

Verification Docs

Term

Description

Blind Work Expense (BWE)

Any work-related item paid by a blind individual under age 65 may be deducted from gross earnings as a BWE.  Some of the more common BWE deductions include:

1.    Federal and local income tax;

2.    Cost of at-work meals; and

3.    Transportation.

Countable Income

Countable income is the individual’s gross income, plus that of a spouse or ineligible parent, minus any exclusion.  An individual’s/ couple’s countable income is used to determine eligibility and the amount of the CAPI payment.  The actual CAPI benefit amount is determined by subtracting the countable income from the CAPI payment rate.

Deemed Income

The amount of another person’s income that is considered to belong to the applicant/participant regardless of whether the other person actually makes the money available to the applicant/participant.

Earmarking

A form of sharing of household expenses that applies when an applicant’s/participant’s contribution is totally or partially designated to pay for shelter and/or food, and the applicant’s/participant’s pro rata share for shelter and/or food is satisfied from the earmarked item.

Earned Income

Earned income includes wages, net earnings from self-employment, wages for work performed in a sheltered workshop in-kind earned income, and royalties.  Wages are counted for each month when they are received.  The monthly average of the annual net self-employment income is counted for each month of the taxable year.  Information may be obtained by viewing the CAPI applicant’s/participant’s most recent income tax forms.  

Note: Wages may also include the value of food, clothing, shelter, or other items provided instead of cash.  This is referred to as in-kind earned income.

Household

A personal place of residence in which the individual(s) share common living quarters and function as a single economic unit.

Members of a household do not need to be related by blood or marriage but must live together in a single dwelling and function as an economic unit.  A person who is temporarily absent from a household is still a member of the household.

Household of Another (HOA)

An applicant/participant who lives with someone else (other than spouse, parent, or a non-Qualified Alien minor child) and the applicant/participant receives both food and shelter from that person and does not contribute towards the household expenses or pays less than the pro rata share for food and shelter.  Also, they do not have ownership interest or rental liability.

Note: The in-kind support is not counted as income but is applied in this situation by using the reduced needs CAPI payment standards for living in the HOA.

In-Kind Income

Income in the form of cash or negotiable instruments. Examples of in-kind income include real property, food, and occasionally wages (e.g., room and board or clothing as compensation for employment).  In-kind income that is unearned and directly satisfies the need for food or shelter is called “In-kind Support and Maintenance” (ISM).

Note: Resources converted to cash are counted as resources.

In-Kind Support Maintenance (ISM)

Unearned income received in the form of food, clothing or shelter that is given to a CAPI applicant/participant for free or the applicant/participant receives for free because someone else pays for it.  ISM can be received from someone living in the same household or from outside the household.

Note: Shelter expenses includes room, rent, mortgage payments, property taxes, heating fuel, gas, electricity, water, sewer and garbage services.  Mobile home space rental is not a shelter expense.

Income

Income is anything received in cash or in-kind which can be used to meet the participant’s needs for food, clothing, and/or shelter.

Inside ISM

When a CAPI applicant/participant resides in a non-public assistance household with at least one person other than his/her spouse or minor child, and either:

1.    The CAPI applicant/participant receives contributions from others within the household and has rental liability or ownership interest; or

2.    The CAPI applicant/participant purchases his/her food separately or earmarks food and/or shelter payments.

Impairment-Related Work Expenses (IRWE)

IRWE are expenses for items or services directly related to enabling a disabled person under age 65 to work, and which are necessarily incurred because of a physical or mental impairment.

To qualify:

1.    An individual must receive a disability payment before age 65;

2.    The expense must be reasonable; and

3.    The expense must actually be paid and not reimbursable.

The amount of the IRWE is generally deducted from the gross income for that same month.  Typical expenses include medications and medical devices.

Outside ISM

When a third party who does not live in the household makes a payment to a vendor (not to the applicant/participant) for any item of the household’s shelter and/or food.

Presumed Maximum Value (PMV)

The maximum amount that can be attributed to ISM received by a CAPI applicant/participant for purposes of determining countable income.  The value of the PMV is equal to one-third of the federal Supplemental Security Income (SSI) benefit plus $20.

Pro Rata Share

The portion of a household’s total expenses that is attributable to the applicant/participant.  It is calculated on the SOC 453, CAPI Statement of Household Expenses and Contributions form, by dividing the average monthly household expenses by the total number of people in the household including adults and children, regardless of age.

Note: Pro rata share does not apply to those who are fully supported (i.e., those who pay nothing toward their support) and does not apply to applicant/participant who reside alone or with a spouse and/or minor children only.

Reduced Needs Payment Standard

A lower rate payment than the “independent living” standard for CAPI applicants/participants who reside in another person’s household for an entire calendar month and receive both food and shelter from that individual.  When an applicant’s/ participant’s monthly benefit rate is calculated using the reduced needs payment standard, ISM does not apply.

Rental Liability

Applies to those who live in their own households and are required to pay rent to the landlord in exchange for the right to reside on the premises.

Some examples of rental liability include:

1.    The individual (or his/her spouse, if they are living together) or a person whose income may be deemed to the individual (e.g., the individual’s sponsor, during the active CAPI sponsor deeming period) is listed as a renter or lessee on the lease;

2.    A room rental within a private dwelling is a form of rental liability.  When an individual resides in a private dwelling, he/she must function as a separate economic unit from other household members in order to have rental liability; and

3.    A flat fee for room and board is a form of rental liability.  An individual who resides in a separate economic household from the landlord and pays a flat fee for room and board is considered to have rental liability.

Unearned Income

Income that is not earned, including but not limited to:

1.    Disability benefits;

2.    Unemployment Insurance Benefits (UIB);

3.    Annuities and pensions;

4.    Dividends, interest and royalties;

5.    Rental income;

6.    Prizes and awards;

7.    Gifts and inheritances;

8.    In-kind Support and Maintenance;

9.    Alimony and support payments;

10.    Death benefits; and

11.    Federally funded public assistance (for example, California Work Opportunity and Responsibility to Kids (CalWORKs)).

Requirement

Limit/Condition

Earned Income

Net earnings from self-employment are counted on a taxable year basis.  The yearly total is divided by the number of months in the taxable year to arrive at the monthly earnings.  Other earned income is counted when it is received or set aside for the employee’s use.

Earned income exclusions are applied in the following order:

1.    Earned income excluded by other Federal law;

2.    Earned income tax credit;

3.    Up to $10 of infrequent or irregular earned income;

4.    Up to $400 per month, but no more than $1,620 per year, for blind or disabled children regularly attending school;

5.    Any portion of the $20 monthly exclusion that has not been applied against unearned income in the same month;

6.    Earned income of $65 per month;

7.    One-half of the remaining earned income in a month;

8.    Earned income used to pay IRWE for disabled (but not blind) individuals under age 65;

9.    BWE for blind individuals under age 65;

10.  Earned income used to meet any expenses reasonably attributable to the earning of income for blind individuals who are under age 65; and

11.  Earned income used to fulfill an approved Plan for Achieving Self-Support (PASS) for blind and disabled persons under age 65.

Unearned Income

Unearned income is counted in the month it is received. Generally, the gross amount of the unearned income in a month is counted before any deductions for:

1.    Recovery of an overpayment from another benefit program;

Note: Amounts withheld to recover overpayments are excluded if the individual previously received CAPI and another benefit simultaneously and the overpayment amount was included in computing the CAPI payment.

2.    Any garnishment or withholding to pay a debt or legal obligation, such as child support; and

3.    Any withholding to make payments or to pay insurance premiums, such as Medicare.

Note: SSI/State Supplementary Payment (SSP) benefits received by a spouse living in the same household as the CAPI applicant/participant is counted as unearned income based on need.

Less Than Gross Amount Counted

Less than the gross amount of unearned income is counted for:

1.    Insurance settlements, from which costs incurred in getting payment, such as legal and medical expenses, are subtracted;

2.    Retroactive checks from another benefit program, which may have legal fees subtracted if the fees are associated with obtaining the retroactive payment;

3.    Death benefits, from which any portion used to pay for last illness or burial expenses of the deceased may be subtracted; and

4.    Veteran’s Benefits, from which any additional benefits paid to the participant due to having a dependent spouse and/or child claimed on his/her benefits case is subtracted from the gross benefit.

Unearned Income Exclusions

Exceptions to unearned income include:

1.    Unearned income excluded by other federal laws, such as CalFresh, federal housing and utility assistance, education assistance, and certain payments to Native Americans;

2.    Any public agency’s refund of taxes paid on real property or food;

3.    Assistance based on need that is wholly funded by a state or political subdivision, such as General Relief (GR), which is considered a loan;

4.    Any portion of a grant, scholarship, or fellowship used for paying tuition, fees, or other necessary educational expenses other than food, clothing, and/or shelter;

5.    Food raised and consumed by the applicant or other household members;

6.    Assistance received under the Disaster Relief and Emergency Assistance Act provided under federal statute;

7.    Up to $20 of irregular and infrequent income received no more than once per quarter, such as interest;

8.    Payments based on state residence (Alaska);

9.    Payments for providing foster care to an ineligible child who was placed in the applicant’s/participant’s home by a public or private nonprofit agency;

10.  Interest earned on excluded burial funds;

11.  In-kind home energy assistance provided by a nonprofit agency or utility company;

12.  One-third of support payments for eligible children;

13.  The first $20 of any unearned income in a month (The $20 exclusion does not apply to a needs-based benefit that is totally or partially funded by the federal government.  The most common examples are Temporary Assistance for Needy Families (TANF) and Veterans Administration (VA) pensions);

14.  Any unearned income used to fulfill an approved PASS;

Note: Through this plan, a blind or disabled individual under age 65 may set aside income or resources and have them excluded in order to fulfill a PASS.  The plan must be in writing and approved by the County.  Any money saved for a PASS must be kept separate from other resources.

Types of PASS money usage (any of which could reasonably be expected to assist the individual to become employed) include, but are not limited to:

a.      Vocational training;

b.      Buying a vehicle; or

c.      Buying computer equipment.

Administrative staff shall call General Relief & CAPI Program staff to determine whether a PASS can be approved.

15.  The value of any Federal Housing subsidies;

16.  Interest earned on excluded burial space;

17.  The value of any commercial transportation ticket for United States travel (including Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands) that is received as a gift;

18.  Payments from a state-based fund to aid victims of violent crime;

19.  Relocation assistance provided by a state or local    government;

20.  Hostile fire pay received from one of the uniformed services pursuant to United States Code 310;

21.  Amounts withheld to recover overpayments are excluded if the individual received CAPI and another benefit at the same time and the overpayment amount was included in computing the CAPI payment;

22.  Costs incurred in getting payments such as legal and medical expenses;

23.  Legal fees associated with receiving a retroactive check from another benefit program;

24.  Any portion of a death benefit used to pay for last illness or burial expenses of the deceased; and  

25.  Any portion of Veteran’s Benefits paid to the recipient because of a dependent is subtracted from gross benefit.

Note: The American Recovery and Reinvestment Act (ARRA) of 2009 gives the participants of UIB an additional $25 supplemental weekly payment.  For CAPI purposes, the $25 supplemental weekly payment is still considered unearned income and is to be included when determining resources and income.

In-Kind Support Maintenance (ISM)

ISM is valued in two different ways:

1.    When an applicant/participant is living in another person’s (relative or non-relative) household for an entire calendar month and receives both food and shelter from that person, the applicant/participant is subject to the reduced needs CAPI payment.

a.    The reduced needs payment standard is used regardless of the actual value of the ISM received in this situation.

b.    A person subject to the reduced needs payment standard cannot be charged with any other ISM income.

c.    A person who pays a pro rata share of the household’s food and/or shelter costs cannot be subject to the reduced needs payment standard.

2.    ISM is charged as unearned income subject to the PMV when it is received in all situations other than the one described above.

a.    The value of the ISM income charged equals the lesser of its actual value or the PMV.

b.    ISM from within the household must be calculated when the individual is living in non-public-assistance household with someone other than a spouse or minor child and either has rental liability or ownership interest and is receiving contributions from others or is either purchasing food separately or assigning food or shelter payments.

c.    ISM from outside the household must be calculated when a third party who does not live in the household makes a payment to a vendor for an item of the household’s shelter or food.  Two examples are:

                                          i.    Rent-free shelter; and

                                         ii.    Rental subsidy.   

Note: Rental subsidy must be calculated when the applicant/participant has rental liability (including room rentals within someone else’s home) and someone in the household is related as parent or child to the landlord or landlord’s spouse.               

Deemed Income

There are three categories of individuals whose income may be deemed to an applicant/participant.

Deemed Income Exclusions

Income excluded from deeming from an ineligible parent or spouse includes all of the following:

1.    All the income exclusions listed under “Earned Income” and “Unearned Income”;

2.    Any public income-maintenance payments, except SSI/SSP that the ineligible spouse receives, and any income which has been counted or excluded in figuring the amount of that benefit;

3.    Income used to comply with the terms of court-ordered support;

4.    ISM; and

5.    Receipt of In-Home Supportive Services (IHSS) paid to the ineligible spouse or parent(s) for providing care, attendant, or homemaker services to the applicant/ participant.

Parent-to-Child Deeming

Parent-to-child deeming applies whenever a minor child under age 18 lives with his/her parent(s), including stepparents.  The parent-to-child deeming rules are applied through the month in which the child reaches age 18.  

Type

Acceptable Documents

Applicant Verifications

Documentation verifying statements made on SOC 814, Statement of Facts Case Assistance Program for Immigrants (CAPI) form, such as pay stubs, bank statements, tax records, rent receipts, proof of property ownership, landlord statement, lease agreements, etc.

Sponsor Verifications

Documentation verifying statements made on SOC 814 and   SOC 860, Sponsor Statement of Facts Income and Resource form, such as sponsor’s contact information, pay stubs, bank statements, tax records, rent receipts, proof of property ownership, etc.     

Immigration Documents

Evidence of current immigration status, such as Legal Permanent Resident card.

Identity Documents

Government issued photo identification such as driver’s license, passport, matricular card, or U. S. Citizenship Immigration Services documentation.  

Proof of Age

Evidence of date of birth such as birth certificate.  

Proof of Supplemental Security Income (SSI) Ineligibility

A denial letter from Social Security Administration (SSA) issued within the past six months before the CAPI application date that indicates the applicant is ineligible for SSI/SSP solely due to his/her immigration status. 

Note: An alternate acceptable document is a receipt from SSA indicating that the CAPI applicant has applied for SSI/SSP and that the application is currently being reviewed.