Policy                                                                       Issuance Number: FSC 00-01

Food Stamp Certification Manual                     Issuance Date: 01/01/00

From: Ruth Whitney, Director                                Expiration Date: Until Superseded

Subj: Categorical Eligibility

• This section of policy has been generally updated.
• Some sections have been rewritten for clarity.
• Information about the AFDC Program has been replaced with information about the TEA Program.
• The word "benefits" has replaced the word "allotment."

Specific changes are explained below:

FSC 5300 – An example has been added to illustrate the circumstances under which money deposited in a checking account will be counted as income.

FSC 5405 – The Indian income exclusions have been updated. A new item 28 has been added. This item explains the exclusion of funds in individual development accounts funded under the TANF block grant program.

FSC 5410 – This section, Recoupments, has been rewritten for clarity.

FSC 5412 – A statement has been added to this section to clarify how to handle the income received by the third-party beneficiary.

FSC 5502 – Information has been added about bonuses received more frequently than once a year.

FSC 5505 – Instructions have been added for handling income received under a contract that covers a period less than 12 months.

FSC 5507 – Information has been added about allowances received by military personnel.

FSC 5600 – 5643 – These sections have been rewritten and renumbered. The new policy sections are:

• FSC 5630 Self-employment Income
• FSC 5631 Partnerships
• FSC 5632 Contractors
• FSC 5633 Corporations
• FSC 5640 Capital Gains
• FSC 5650 Special Payments to Farmers
• FSC 5660 Determining Self-employment Income
• FSC 5661 Annualizing Self-employment Income
• FSC 5662 Self-employment Income that is not Annualized
• FSC 5662.1 Self-employment Enterprises in Business for Less than One Year
• FSC 5662.2 Self-employment Income that Increases or Decreases Substantially
• FSC 5662.3 Anticipating Capital Gains
• FSC 5663 Costs of Producing Self-employment Income
• FSC 5663.1 Rent or Mortgage, Taxes and Insurance Payments as Costs of Producing Income
• FSC 5663.2 Utilities as a Cost of Producing Income
• FSC 5664 Calculating Net Self-employment Income
• FSC 5664.1 Separate Enterprises
• FSC 5664.2 Budgeting Income Received from a Partnership
• FSC 5670 Farm Loss Deductions
• FSC 5680 Reported Changes in Self-employment Income
• FSC 5690 Verification/Documentation
• FSC 5691 Certification Periods

FSC 5701.1 – This is a new section. It contains information about TEA diversion assistance.

FSC 5701.2 – This is a new section. It contains information about TEA employment bonuses.

FSC 5701.3 – This is a new section. It contains information about TEA extended support payments.

FSC 5704.4 – This section now provides information about anticipating child support income.

FSC 5704.5 – This is a new section. It provides information about verifying child support income collected by OCSE.

FSC 5704.6 – This is a new section. It provides information about verifying child support income not collected by OCSE.

FSC 5704.7 – This is a new section. It provides information about documentation of child support income.

FSC 5708 – Information about guardianship payments to relatives has been added to this section.

FSC 5723 – Information about VA aid and attendance has been added to this section.

Inquiries to: Betty Helmbeck, Food Stamp Section, (501) 682-8284