.Purpose

Policy

Background

Release Date:

06/13/18

Definitions

Requirements

Verification Docs

CALFRESH

Reasonably Anticipated Income

Purpose

(    ) To release a new policy

(    ) To release a new form

( X ) To convert existing policy to new writing style only – No concept changes

(    ) Revision of existing policy and/or form(s).

 

This release is a tool for correctly determining Reasonably Anticipated Income, resulting in exact income evaluations for CalFresh benefit level calculation.

Policy

Reasonably Anticipated Income (RAI) is “reasonably anticipated” when the County determines with reasonable certainty the amount and date of the income that the household (HH) will receive during the upcoming Semi-Annual Reporting (SAR) period.  CalFresh benefits are calculated based on Prospective Budgeting (PB), which requires and uses all countable income that the HH reasonably anticipates will receive in the upcoming SAR Payment Period.

 

Income will be considered reasonably anticipated, if it is determined that:

 

Ø  The income has been, or will be approved or authorized within the upcoming payment period;

Ø  The HH verifies income is reasonably certain that it will be received within the payment period; and

Ø  The amount and date of the income are known.

 

RAI applies to all countable income:

 

Ø  Earned Income;

Ø  Unearned Income; and

Ø  Self-employment income.

 

Any part of the HH’s income that is uncertain or cannot be reasonably anticipated, will not be counted when determining income eligibility and benefit levels. This can be seen when either of the following occurs:

 

Ø  The amount of income is unknown;

Ø  The date when the income will be received is unknown (i.e., cannot be reasonably anticipated); or

Ø  When the HH’s income changes or fluctuates and no amount of this income or receipt date can be anticipated.

 

RAI will be used when:

 

Ø  The HH first applies for benefits;

Ø  The HH reports new income or source of income on the SAR 7 report, the annual recertification, or mid-period;

Ø  The HH reports on the SAR 7 report or the annual recertification that income is expected to change;

Ø  The HH reports mid-period that income is expected to change; or when

Ø  The HH reports that it has income that fluctuates.

Background

N/A

Definitions

Term

Description

Reasonably Anticipated Income

Income that has been or will be approved or authorized as of a date within the upcoming payment period, and the amount and date of the income is known.  The household is reasonably certain that the income will be received within the upcoming payment period.

Prospective Budgeting

Budgeting methodology that uses reasonably anticipated income for the upcoming payment period to determine current and future benefits for a CalFresh HH.

Data Month

The month prior to the SAR 7 or RE Submit Month.  The information reported for this month determines eligibility and benefit amounts for the upcoming payment period.

Mandatory Mid-Period Report

CalFresh Program has two mandatory mid-period reports that must be made by the HH within 10 calendar days.  These two changes are as follows:

 

1)    Income that exceeds the HH’s Income Reporting Threshold (new or ongoing income that is over 130 % of the FPL for the HH size); and

2)    Able Bodied Adults Without Dependent Children (ABAWD) who are meeting the work requirement through employment are required to report when hours drop below 20 hours per week or 80 hours per month.

 

Note:  Effective October 1, 2015 through August 31, 2018, the ABAWD work requirement is waived in Los Angeles County.  During this time period, Non-Assistance CalFresh participants are not subject to the ABAWD requirement.

Submit Month

The month the CalFresh HH must submit the SAR 7 or Recertification (Due Month).

Requirements

 

Requirement

Limit/Condition

Income at Application

Income that is starting or ending during the application month will not be averaged over every month of the upcoming payment period.  If the HH received the first check (not an entire month’s checks) or the last check in the application month, this income will be used to determine eligibility and benefit amount for that month.

 

Income Change Mid-Period

Income that is starting or ending mid-period will not be averaged over every month of the payment period.  This income will only be counted in the months it is received.  The income for the remaining payment period must be reasonably anticipated.      The income for the remaining payment period must be reasonably anticipated.  The treatment of this income changes based on the certainty of the HH when the income will begin or end.

Income Decrease During SAR 7/RE Submit Month

When the HH reports a decrease in income for the Submit Month, this income will be treated as a mid-period change and the information of decreased income will be used to anticipate income for the remaining SAR Payment Period, if the change continues, and it is verified.

Information Required to Determine RAI

The information required to determine what income can be reasonably anticipated may differ based on the specific HH circumstances.  To reasonably anticipate income, the following information is required:

 

 

Ø  The type of income (earned, self-employment, unearned, etc.);

Ø  The source of income (cash, check, paystubs, etc.) and in some cases, hourly rate and/or hours of work, pay frequency; and

Ø  The HH’s estimation of income.

 

If, with the help of the HH, a decision of how income will change cannot be made, only that part of income that the HH can reasonably anticipates will be used in the benefit calculation.

Verification Documents

Income Category

Acceptable Documents

(not an exhaustive list)

Earned

·         Pay stubs – All paystubs are not required to budget income if monthly income can be determined with fewer pay stubs.

·         W-2 forms;

·         Income Tax Returns;

·         Written statement from employer or completed PA-1672, Request for Employment Verification;

·         PA-167 Monthly Earnings Report;

·         Affidavit signed under penalty of perjury is accepted as a last source when the source of the verification (i.e., employer) refuses to cooperate.

Unearned

·         Award letter(s)

·         Print-outs from income source;

·         Check stubs;

·         Copy of check(s);

·         Income Eligibility Verification System (IEVS);

·         Payment Verification System (PVS);

·         Medi-Cal Eligibility Data System (MEDS) records;

·         General Relief (GR) and CalWORKs income records;

·         Affidavit signed under penalty of perjury is accepted as a last resource when the source of the verification (i.e., employer) refuses to cooperate.

Self-Employment

·         PA-167 Monthly Earnings Report;

·         Income Tax Returns;

·         Copy of check(s);

·         Written statement from contractor(s);

·         Business Checking Account Statement(s);

·         Affidavit signed under penalty of perjury is accepted as a last resource when the source of the verification (i.e., Uber, Lyft, or other self-employment providers) refuses to cooperate.