The County will evaluate the income reported to determine if the income is or is not exempt based on each income category.
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Category
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Guidelines
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EXEMPTION OF EARNED INCOME
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Temporary Census Employment
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Effective November 1, 2019, any temporary census-related income or stipend is exempt. This includes all income paid by:
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The U.S. Census Bureau;
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A government entity; or
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A nonprofit organization.
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Note: Permanent census income is not exempt and is treated as earned income.
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Student Exemption Criteria
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Each time a child is employed, the student exemption criteria must be applied.
This criteria is applicable to a child, under the age of 19 who receives earned income from any source.
The income is exempt if:
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They are a full-time student; or
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They:
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o
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Have a school schedule that is equal to at least part-time curriculum; and
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o
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Are not employed full-time.
Note: Part-time employment is less than 173 hours per month.
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For CalWORKs financial eligibility purposes, the student exemption applies to:
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Full or part-time earnings between school terms;
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During vacation periods as long as the child plans to continue to be a student next term or when the vacation period ends;
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The earnings of a full-time student applying for CalWORKs;
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The earnings of a full-time student who is a recipient of CalWORKs; or
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The earnings of a part-time student who is a recipient of CalWORKs benefits.
Note: The Student Exemption does not apply to earnings of a part-time student who is applying for CalWORKs benefits.
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The student exemption criteria must not be applied to income received from a WIOA funded agency.
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When a youth under 19 years of age is aided as a child on a parent/caretaker’s CalWORKs case, has earnings, and does not meet any of the Student Exemption criteria
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The income does not meet the exempt criteria and is used to determine the CalWORKs benefits.
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Paid Work Experience (PWE) payments received from a WIOA Program
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The paid work experience income received from a WIOA agency is treated as follows:
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If the payment is for a child, the income is disregarded from both eligibility and the grant determination.
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o
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There is no time limit for this disregard.
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If the payment is for an adult, the income is exempt as income to the extent the payment reimbursement does not exceed the actual expenses allotted by the WIOA Program.
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o
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The payment which exceeds the allotted contractual hour and dollar amount with the WIOA Program is considered earned income and is not exempt.
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Note: The hourly rate and the maximum PWE hours will vary by program.
When an applicant or participant receives income from a WIOA funded agency, the applicant or participant does not need to meet the Student Exemption criteria.
The income is exempted in accordance to the rules noted above.
Verification
The WIOA funded agency will provide enrollment verification to the child/adult enrolled in the PWE Program.
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Income Disregards
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A family will be applied the following disregards to the earnings received from all CalWORKs eligible family members:
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$225 is deducted from the combined gross earned income and a 50 percent of any remaining earned income is also disregarded; or
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Up to $225 is deducted from a combined disability-based unearned income, including veterans disability-compensation benefits. If the disability-based unearned income is:
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ü
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Greater than $225, then only $225 is deducted. The difference of disability unearned income remaining is added to any other non-exempt income;
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ü
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Less than $225, the remaining of the $225 disregard is applied to the earned income, if any.
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ü
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If the disability-based income is $0, the $225 disregard is applied to the earned income, if any.
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Note: If the participant receives earned and disability-based earned income, the $225 disregard is deducted from the disability-based unearned income first.
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Services Wage Based Community from On-the-Job Training Programs
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This income is treated like unearned income in that the entire amount is deducted from the CalWORKs cash grant and is not subject to the $225 and 50 percent income disregards.
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College Work-Study Program
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Any earned income from a College Work-Study Program is exempt.
This applies to applicants (Intake) and participants (Approved).
Note: The hours performing work-study should not be included in the 100-hour employment rule since the income received from the Work-Study Program is exempt.
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THPP and the THP-Plus Programs
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THPP:
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A program for probation and foster care youth ages 16 to 18, who are currently in the child welfare system; and
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Payments are exempt from consideration as income if they are part of a written Independent Living Plan (ILP) and the youth is still considered a dependent child.
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THP-Plus:
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A program for emancipated youth ages 18 to 24 who are emancipated from the foster care or probation systems;
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Payments are not exempt because the youth eligible for this program are between the ages of 18 and 24 and are not considered children for the purposes of CalWORKs; and
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Payments are treated as follows:
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o
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Cash THP-Plus payments are considered unearned income; and
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o
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THP-Plus payments made directly as rent are considered In-Kind income for that item of need.
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A child 16 years of age or older participating in the ILP
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The income and incentive payment earned is exempt as income for purposes of eligibility and grant determination when received as part of the ILP.
Note: There is no limit to the amount exempted under this subsection.
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Exemption of Payments from Public Sources
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Exemption of Payments from Public Sources
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The following income is exempt:
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Relocation assistance benefit is exempt when it is:
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o
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Paid by a public agency to a public assistance recipient who has been relocated as a result of a program of:
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ü
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Area redevelopment;
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ü
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Urban renewal;
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ü
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Freeway construction; or
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ü
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Any other public development, involving demolition or condemnation of existing housing.
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Payments made by CalWORKs for child care costs.
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California Victims of Crimes Program.
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Training allowance paid to participants participating in the Department of Rehabilitation Training Program.
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Payments received under the Energy Crisis Assistance Program or the Low Income Energy Assistance Program.
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The following funds received from the California Franchise Tax Board:
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o
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Renters Credits;
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o
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Senior Citizens Homeowners and Renters Property Tax Assistance Program (persons who are disabled, blind, or 62 years of age or older); or
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o
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Senior Citizens Property Tax Postponement Program (persons who are 62 years of age or older).
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Special Tax Rebates and Credits:
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o
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Tax rebates, credits or similar temporary tax relief measures which State or federal law for CalWORKs specifically exclude from consideration as income is exempt.
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ü
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W-2 form and 1040 form could be provided as verification.
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o
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Does not apply to annual income tax refunds.
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Income Tax Refund Income
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Considered personal property and is treated in accordance with the CalFresh regulations.
Reference CW 42-213.2 Personal Property for more information.
Reference CF 63-501.1 Resource Determination for more information.
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Income from a Tax Rebate
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Tax rebates, credits, and similar tax relief measures are:
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Exempt from consideration as income;
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Not considered a resource in the month received or the two following months for purposes of eligibility determination; and
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Considered property/resource for any unused portion of the tax rebates which remains after the third month and is applied to the case per existing Semi-Annual or Annual Reporting rules.
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Example - Semi-Annual Reporting rules:
The period is April/May/June/July/August/September. The participant receives a $3,000 tax rebate in August, which they reported on their August SAR 7. The participant reports during their March Redetermination interview that they have a total of $4,800 in the bank, which included the tax rebate and other funds. As of March, the participant exceeded the property/resource limit. The case is to be discontinued at the end of the Semi-Annual period (March) with a ten-day Notice of Action.
Note: The participant can reapply for CalWORKs benefits once the monies are lower than the property/resource limit.
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Earned Income Tax Credit (EITC)
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Federal EITC is excluded as a resource or income for the month of receipt and the following month.
The EITC payment is treated in accordance to CalFresh regulations.
An EITC payment received by any household member shall be excluded for 12 months, providing the household was receiving CalFresh at the time of the receipt of EITC and participating in CalWORKs continuously during the 12-month period.
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EXCLUSIONS OR EXEMPTIONS OF OTHER PAYMENTS AND INCOME
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Academic/Extracurricular Awards or Scholarships to Dependent Children
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Prior to November 1, 2019, only awards/scholarships provided by a public or private entity were excluded/exempted as long as it was based on the child’s:
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Academic or extracurricular achievement; or
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Participation in a scholastic, educational; or extracurricular competition.
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Note: All other types of awards and scholarships received were treated as income when determining CalWORKs eligilbity or the grant amount.
Effective November 1, 2019, any award or scholarship provided to, or on behalf of, a dependent child is exempt; no other conditions/criteria need to be considered for the income to be exempt.
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Loans and Grants
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The following types of loans and grants are excluded:
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Carl D. Perkins Vocational and Applied Technology Education Act.
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o
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Excluded if the proceeds are used to meet attendance costs for a student attending school on at least a half-time basis which includes: tuition, fees, rental/purchase of required equipment, materials/supplies, books, transportation, dependent care and miscellaneous personal educational expenses.
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The community college extended opportunity services.
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The California Student Aid Commission.
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A college accredited by the Western Association of Schools and Colleges.
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Title IV of the Higher Education Act or under the Bureau of Indian Affairs Student Assistance Program. This includes loans/grants that are partially funded by Title IV:
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o
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Supplemental Educational Opportunity Grant Program;
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Carl D. Perkins Loans (differs from the Carl D. Perkins Vocational Act);
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Robert C. Byrd Honors Scholarship Program;
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National Science Scholars Program;
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State Student Incentive Grants (Cal Grant Program);
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Paul Douglas Teacher Scholarship Program;
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College Work-Study;
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Income Contingent Loan Program;
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Bureau of Indian Affairs Higher Education Grant;
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Indian Health Service Scholarship Program;
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Pell Grant;
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Federal Family Education Loan Program:
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ü
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Guaranteed Student Loan Program;
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ü
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Stafford Loan Program;
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ü
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Consolidation Loan Program;
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ü
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Supplemental Loans for Students Program; and
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ü
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Parent Loans for Students Program.
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o
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Other grants received by undergraduate students for educational purposes made or insured under any program administered by the Federal Secretary of Education; and
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o
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Any other grants when it is verified that the proceeds are not available to meet current needs.
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Veterans Affairs (VA)
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Effective January 1, 2018, as a result of Senate Bill 570, Chapter 463, Statutes of 2017, the following are exempt from consideration as income for the purposes of determining CalWORKs eligibility or calculating grant amounts:
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Education, training, vocation, or rehabilitation allowances, as well as housing allowances received under the GI Bill; and
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Benefits and related allowances for purposes of education, training, vocation or rehabilitation received under other VA benefits.
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Some examples of educational assistance programs specific to the GI Bill, include, but are not limited to:
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Yellow Ribbon Program (established by the Post-9/11 Veterans Education Assistance Act of 2008);
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o
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Monthly Housing Allowance as part of the Yellow Ribbon Program;
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Survivors and Dependents Assistance (i.e., Fry Scholarship and The Survivors’ and Dependents’ Educational Assistance (DEA) Program);
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Tuition Assistance (including a books and supplies stipend); or
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Licensing and Certification Test Reimbursement.
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Some examples of other VA benefits received for training, vocational and/or rehabilitation include, but are not limited to:
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National Call to Service Incentive Program; or
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Compensated Work Therapy.
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Public Assistance CalFresh
These benefits are exempt from consideration as income when determining CalWORKs and Public Assistance CalFresh eligibility for veterans, their dependents and spouses.
Non-Assistance CalFresh
For Non-Assistance CalFresh income exemptions, please refer to CalFresh Policy.
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Loans
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A loan is exempt if there is a written agreement signed and dated by the lender and applicant/participant that specifies:
1. The obligation of the applicant/participant to repay the loan; and
2. A repayment plan that provides for installments of specified amounts that continues on a regular basis until the loan is fully repaid.
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Reverse Mortgage
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A homeowner can request a reverse mortgage loan to borrow against their home which does not require a repayment to the lender as long as the owner continues to reside there.
Qualifications for reverse mortgage:
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One must own their home;
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The owner must be at least 62 years of age; and
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It is agreed between both parties, lender and borrower, that the home will be sold and the proceeds will be used to repay the lender once the borrower/annuitant dies or vacates the home.
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The reverse mortgage loans are exempt or excluded from income and property consideration since:
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The reverse mortgage is considered a loan and there is a repayment to pay the lender once the owner dies or vacates the home; and
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The home, regardless of its value, is excluded as property as long as it is occupied by the AU.
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Private Non-profit Organization
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Any In-Kind income (i.e., free rent, utilities, etc.), whether a full or partial payment, that is provided on the basis of a need by a private non-profit organization is exempt as income.
Private non-profit organizations are religious, charitable, education or other organizations (i.e., Salvation Army, Red Cross, and churches).
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Child/Spousal Support Disregard
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The first $50 per month of current child/spousal support paid to the AU is disregarded when determining continuing eligibility and grant amount. This applies when:
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The child/spousal payment is received by the Child Support Services Department (CSSD)/Court Trustee from the absent parent; or
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·
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A child/spousal payment is received directly from the absent parent (the balance of the support payment is considered income to the AU).
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Note: The disregard is applied in the month in which the child/spousal support payment is received by the County.
The total amount of the current child/spousal support disregard cannot exceed $50 per AU regardless of whether the payment is received by CSSD/Court Trustee or directly from the absent parent.
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Child Support collected by CSSD for Safety Net cases which consist of Long-Term GAIN Sanctioned and Fleeing Felon parents
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Single-Unaided Adult – Safety Net, Long-Term GAIN Sanctioned, or Fleeing Felon:
Safety Net cases may include 48-month timed-off particpants.
Prior
The aid code applied to single-unaided adults was 3A.
Effective 12/01/2013
The aid code for this population changed to K1.
Two-Parent Unaided Adults – Safety Net, Long-Term GAIN Sanctioned, or Fleeing Felon:
Prior
The aid code applied to two-parent unaided adults was 3C.
Effective 12/01/2013
The aid code for this population changed to 3F.
Child Support Regulation:
Prior
Child Support collected by CSSD for aid codes 3A and 3C were:
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Retained and a child support disregard of $50 was issued to the participant; and
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·
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The 48-Month Time Clock will not tick for each month of aid that was fully reimbursed by assigned child support payments paid to CSSD.
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Effective 12/01/2013
Child Support collected by CSSD for aid codes K1 and 3F are not:
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Retained. The entire amount of child support collected by CSSD is sent to the participant; and
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·
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The 48-Month Time Clock will not untick.
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Note: Child Support payments received by the AU other than the $50 disregard payment are counted as unearned income in the CalWORKs grant determination.
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FEDERAL LAW EXEMPTION
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Federal Law
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The following income is exempt under federal law:
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Funds distributed or held in trust for members of any Native American tribe under Public Law (PL) 92-254 or 94-540.
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Compensation received by participants 60 years or older for volunteer services performed under PL 89-73:
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o
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Retired Senior Volunteer Program;
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o
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Foster Grandparents Program; or
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o
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Older Americans Community Service Program of the National Older Americans Act.
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Value of supplemental food received under PL 92-433 and 93-159, Child Nutrition Act/Women, Infants and Children and the National School Lunch Act.
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Earned Income Credit payments.
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·
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Payments received from any federal, State, or local Adoption Assistance Program.
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Payments received under PL 93-113, Domestic Volunteer Services Act of 1973 to welfare participants who are Americorps VISTA volunteers and payments for supportive services/reimbursement of out of-pocket expenses made to persons serving in the Service Corps of Retired Executives and the Active Corps of Executives pursuant to Section 418.
Note: In 1994, Congress transferred the VISTA Program to the Corporation for National and Community Service and the name was changed from VISTA to AmeriCorps VISTA.
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Payments received under PL 100-383, as restitution made to United States (U.S.) citizens and permanent resident non-citizens of Japanese ancestry and to Aleuts as a result of being relocated by the U.S. government during World War II.
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Payments received under PL 101-201 and PL 101-239 from all Agent Orange settlements.
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Payments received under PL 103-286 as restitution made to victims of Nazi persecution.
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Payments received under PL 111-5 Filipino Veterans Equity Compensation Fund created by the American Recovery and Reinvestment Act of 2009.
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