Income is classified as earned income or unearned income. The household is required to report all income at the time of application and any income anticipated to be received during the certification period. All earned and unearned income received on each household member is counted as income unless the income is excluded as specified in [FSC 5400].

After a household files for bankruptcy, the gross amount of any income (earned and unearned) received by the household will continue to be counted in the budget. Sometimes, the household's income goes to a trustee and the trustee pays the household's bills and gives the household a living allowance. The living allowance has already been counted as part of the household's gross income and so would not be counted as income again.

When a self-employed household (including any farmer) declares bankruptcy and continues to do the same type of business, the self-employment income continues to be counted in the food stamp budget. Often when a business or farm declares bankruptcy but continues to operate, some of the assets of the business are sold to pay the debts of the business. If the business owner (or farmer) sells property or equipment used in their business and uses the proceeds to pay off a loan, the money is counted as income in the self-employment enterprise. (See Capital Gains, [FSC 5640].) Even if the proceeds of the sale are diverted to a bank to repay a loan, the money is still counted as income in the self-employment enterprise.

If the household is no longer allowed to continue the self-employment enterprise, the self-employment income is dropped from the food stamp budget. When the business no longer continues to operate and business collateral is turned over to a bank, either voluntarily or through repossession, it becomes the legal property of the bank. Even if the bank sells the collateral (land, equipment, etc.) and uses the proceeds to pay off a business loan, the proceeds of the sale are not counted as income in the self-employment enterprise.

When bankruptcy is declared, a creditor (or lender) may write off all or part of a loan or "forgive" the outstanding balance or the household's current payment may be recalculated. If the amount due on a deductible expense (i.e., house payment) changes as a result of a bankruptcy, the worker will verify the amount currently incurred for the expense. The current amount will be used in the food stamp budget. Past due amounts will not be allowed even if included with current payments or even if paid through the court directly to the creditor. See [FSC 6710].

A bankruptcy settlement normally states the household's resources, which resources will be disposed to cover the household's debts and under which conditions the household may retain other resources. If there are questions about whether resources retained by the household are accessible, a legal opinion should be requested through normal channels.

An aged/disabled household must meet only the net income eligibility standards. Net monthly income is computed by adding all non-excluded income for all household members and subtracting all allowable deductions.

A regular household must meet both the net income eligibility standards and the gross income eligibility standards. Gross monthly income is all non-excluded gross earned and unearned income for all households’ members. Net income is the household's income after subtracting all allowable deductions.

A categorically eligible household does not have to meet either the gross or net income eligibility standards.

Household income is any gain or benefit (usually in the form of money) from any source provided it is not excluded. See [FSC 5400] for an explanation of excluded income.

Example: A woman applies for food stamp benefits for herself and her children. She is separated from her husband; however, each month he deposits $1,500 in the couple’s joint checking account. The money deposited in the checking account is unearned income for food stamp purposes.

Only the following types of income are excluded when determining food stamp eligibility:

• Child support payments obligated to OCSE to maintain eligibility
• Costs of producing self-employment income
• Earnings of a child who attends school
• Educational income 
• By Federal statute
• In kind benefits
• Irregular income
• Loans
• Non-recurring loan payments
• Payments for third party beneficiaries
• Recoupments
• Reimbursements
• Vendor payments
• Earned income tax credits

See [FSC 5401 - 5414] for a full explanation of excluded income.

Child Support payments received by TEA recipients which are obligated to the Office of Child Support Enforcement (OCSE) to maintain TEA eligibility will not be counted as income. This exclusion applies even when such payments are not actually turned in to OCSE. It also applies to payments received by former AFDC and/or TEA recipients when held by OCSE and applied to previous AFDC and/or TEA arrearages.

Any child support payment received through an interception of a State or Federal income tax refund is excluded as non-recurring lump sum payments. Any child support payment received through interception of a lump sum Worker's Compensation payment is also excluded as a non-recurring lump sum payment. See [FSC 4950] for instructions on handling lump sum payments.

Also see [FSC 5704] for an explanation of child support to be counted as income.

The earned income of a high school student must be counted beginning the month after the student turns 18. This applies regardless of marital status so long as the student continues to live with a parent.

This exclusion does not apply to students who have established a residence separate from their natural, adoptive or step parent or from the adult household member who exercises parental control over the student.

This exclusion applies during school breaks and summer vacation if the student plans to attend school when regular sessions resume. If the child's portion of the earned income cannot be determined, the income must be evenly prorated among all the individuals who earned the income. The child's pro rata share will be excluded as income.

1. Meals;
2. Clothing;
3. Public housing;
4. Produce from a garden;
5. Shelter provided to an employee;

Example: A farmer hires a household member as a laborer. The household is provided with a house on the farmer's farm and utilities are free of charge. The house and utilities are considered in-kind benefits and excluded as income.

All loans are excluded as income. This includes loans from private individuals as well as commercial loans. A formal repayment agreement is not required. However, the intent to repay the loan must exist.

Example: A household member receives a loan from his brother in the amount of $1,600.00 for the purpose of buying a stereo system. The total amount of the loan is to be repaid. There were no documents signed since both parties verbally agreed to the terms. The amount of the loan ($1,600) is totally excluded as income to the household.

See [FSC 5415] for instructions on verifying loans.

See [FSC 4950], Lump Sum Payments, for instructions on handling the receipt of loans.

One-time lump sum payments are excluded as income. Examples of lump sum payments include, but are not limited to, the following payments:

1. Federal and State income tax refunds, rebates, or credits.
2. Child Support when received as the result of the interception of a State or Federal income tax refund. Other child support payments will be handled as explained in [FSC 5704].
3. Refunds of security deposits on rent or utilities.
4. Lump sum insurance payments such as, but not limited to, settlements for damages to a household member's property, life insurance payoffs, crop insurance payments and lump sum Worker's Compensation settlements.
5. Loans.
6. One-time payments for damages received through a court or through an out of court settlement.
7. Cash gifts, awards, or prizes when received on a one-time basis. See [FSC 5709] for instructions on handling recurring payments.
8. The proceeds (net) from the sale of personal property when payment is received on a one-time basis. See [FSC 5710] when payments are received in installments.
9. Work incentive payments received upon the completion of the program.
10. Retroactive Social Security or Railroad Retirement payments or any other retroactive benefit payment.

    TEA and SSI lump sum payments will be excluded as a resource so long as the recipient continues to be eligible for the benefit. See [FSC 4451] for instructions. If the recipient is no longer eligible for TEA or SSI, the lump sum payment will be considered a resource.

11. Retroactive wages (net) paid on a one-time basis to correct a previous underpayment or to otherwise adjust wages.
12. Vacation pay (net) when received as a one-time payment after termination or layoff.
13. Severance pay (net) when received as a one-time payment. (See [FSC 5716] for instructions on handling severance pay received in installments.)
14. Salary bonuses (net) that cannot be considered to be annual bonuses. See [FSC 5502] for additional information.
15. Transitional Employment Assistance (TEA) Diversion Assistance Payments.

Non-recurring lump-sum payments excluded as income must be counted as a resource in the month received, unless specifically excluded as a resource by Federal statute or regulation. See [FSC 4450] for a list of resources excluded by law.

See [FSC 4951] for instructions on handling lump-sum payments.

A recoupment is the voluntary or involuntary return of money from and assistance payment, earned income or other income source to repay a previous overpayment received from that income source. Monies being withheld from social security, SSI benefit or other federal payments to repay a food stamp over payment under the Treasury Offset Program(TOP) will NOT be excluded as income. The gross benefit amount must be counted in the food stamp budget. See FSC15930 for information about the TOP Program.

 Monies currently being recouped are excluded as income if both of the following conditions are met.

Condition 1 - The income in which the overpayment occurred must not have been excluded in the food stamp budget at the time of overpayment.

Example – The Office of Child Support Enforcement (OCSE) determined that a child support recipient was overpaid because she kept child support payments for a child who was receiving TEA cash assistance. These child support payments were excluded as income in the food stamp budget at the time this overpayment occurred. The household no longer receives TEA cash assistance but does continue to receive child support through OCSE. Part of this child support is being recouped to repay the overpayment. Since the child support payments were excluded as income in the food stamp budget at the time of the overpayment, the gross child support income (including the amount being recouped) will be counted in the current food stamp budget.

Condition 2 - For an overpayment in TEA (or AFDC) benefits, SSI benefits or HUD assistance, the overpayment must not be classified as an Intentional Program Violation (IPV). The agency administering the program makes the decision whether or not to classify an overpayment as an IPV. (DHS does conduct administrative hearings to determine fraud in TEA cases. See TEA 8100.)  When the agency administering the program cannot or will not tell the county office worker if an overpayment is classified as an IPV, the county office worker will assume this condition has been met. (See the next paragraph for additional information about SSI recoupments.)

Payments which cover past or future expenses are excluded as income if the payment does not exceed the actual expense and does not represent a gain or benefit. This does not apply to reimbursements for normal living expenses such as rent, utilities, personal clothing, etc.

NOTE: No portion of a TEA cash assistance payment will be excluded as a reimbursement for past or future expenses.

To be excluded, the payment must be for a specifically identified expense and used for the purpose intended. Any portion of the payment that exceeds the actual incurred expense or covers normal living expenses is considered income. A payment is not considered excessive unless the provider or the household indicates the amount is excessive. When a payment covers several expenses, each expense does not have to be separately identified provided the payment covers only normal living expenses.

Some, but not all, excludable reimbursements are listed below.

1. Reimbursements or flat allowances for job related expenses such as travel, per diem, uniforms, or transportation to and from a job or a training site.
2. Reimbursements for out-of-pocket expenses incurred by volunteers during the course of volunteer work.
3. Medical or dependent care reimbursements.
4. Reimbursements received by households to pay for services provided by Title XX of the Social Security Act.
5. Utility reimbursements made by the Department of Housing and Urban Development (HUD) and the Farmers Home Administration (FMHA).

See [FSC 1622.3] for information about handling reimbursements received by students. See [FSC 5713] for information about handling reimbursements for normal living expenses.

A beneficiary is an individual for whom a gain or benefit is intended.

An individual who receives an entitlement check such as VA or SSA is usually the intended beneficiary. However, in some cases, the intended beneficiary does not actually receive the income. Another individual is designated to receive the income as a payee and to use the income for the care and maintenance of the intended beneficiary. In these cases the intended beneficiary is called a third-party beneficiary.

Money received for the care and maintenance of a third party beneficiary who is not a household member is excluded to the extent that the money is actually used for the care and maintenance of the beneficiary.

Example 1 - Mr. Smith is the payee for his brother's SSI check. Mr. Smith and his brother do not live together. Mr. Smith states that he uses all of the SSI check to meet his brother's needs. None of the SSI check would be counted as income in Mr. Smith's food stamp case.

If the intended beneficiaries of a single payment are both household and non-household members, any identifiable portion of the payment intended and used for the care and maintenance of the non-household member is excluded.

Example 2 - Ms. Conway receives Social Security for herself and one child. Ms. Conway is enrolled in college. She lives on campus and the child lives with its grandmother. The grandmother receives food stamps. Ms. Conway states that she keeps $100 of the social security payment and gives $100 to the grandmother to take care of her child. $100 will be counted in the grandmother's food stamp case.

If the non-household member's share cannot be readily identified, the payment will be evenly prorated among the intended beneficiaries. The amount excluded will be the lesser of the household member's pro rata share or the amount actually used for non-household member's care and maintenance.

Example 3 - Mrs. Scott receives child support in the amount of $500 for three children ages 6, 9 and 17. The seventeen year old child lives with an aunt. Mrs. Scott states that she gives the aunt some money for the 17 year old each month. The amount varies depending on the child needs. She estimates that it averages out to around $175 per month. The $500 child support payment is prorated among the three children. The pro rata amount of $166.66 is excluded from Mrs. Scott's income when calculating a food stamp budget.

If the intended beneficiary is included in a household that receives food stamp benefits, the amount received by the beneficiary or used by the payee for the beneficiary's care and maintenance will be counted as income in that household’s food stamp budget. This means that if both households receive food stamp benefits, the full amount of the benefit should be counted. The benefit amount may be counted in full in either budget or split between the two budgets. See FSC 5706.

Vendor payments are monetary payments made by a non-household member for household expenses.

To be excluded as income, these payments must be made by a person outside of the household directly to the household's creditors or to a person or organization that is providing a service to the household.

The household must not have the option of receiving these funds directly.

Examples of excluded vendor payments appear below:

1. A friend, employer, agency, church, relative, or former spouse makes payments for household expenses such as rent or utilities directly to the landlord or utility company. If the payment is made from funds not owed to the household, is a vendor payment and excluded as income.
2. If an employer pays a household rent or house payment directly to the landlord or financial institution in addition to paying regular wages, this is a vendor payment and excluded as income. If the employer provides a house to an employer, the value of the housing will not be considered as income.
3. Separate and identifiable alimony or support payments made by a person outside of the household under a court order or other legally binding agreement which requires direct payment to a third party are vendor payments and excluded as income by the household receiving the benefit. See [FSC 6550] for instruction on child support as a deductible expense. (When the court awards part of a pension to an ex-spouse and that payment is diverted by the payer directly to the ex-spouse, only the portion actually received by the household will be considered income. See [FSC 5712].)
4. Payments by a government agency to a child care facility for the purpose of providing day care for a household member are considered vendor payments and excluded as income.
5. Payments or allowances made by Department of Housing and Urban Development (HUD) or by the Farmers Home Administration (FMHA) directly to mortgage holders, landlords or utility providers are vendor payments and excluded as income. (See [FSC 5411] for instructions on handling utility reimbursements or utility assistance payments from HUD or FMHA.) Mortgage payments made by state or local housing authorities directly to the mortgage holder are also considered vendor payments and excluded as income.
6. Emergency assistance for a migrant or seasonal farm worker household during the period the household is in the job stream is considered a vendor payment and excluded as income. Such assistance may include, but is not limited to, emergency vendor payments for housing or transportation. See [FSC 5405, item 11].

Public assistance (PA) vendor payments are treated as follows:

1. PA vendor payments made for medical assistance are excluded as income.
2. Assistance payments provided to a third party on behalf of a household under a State or Local General Assistance (GA) program or a comparable program are excluded as a vendor payment so long as no cash assistance is provided directly to the household. (NOTE: No such programs are known to exist in this State; however, payments received under these conditions in other states will be excluded as income.)
3. Emergency and special public assistance (PA) funds provided to a third party on behalf of a household are excluded as a vendor payment if the assistance is provided over and above the normal PA grant or payment.

Vendor payments included as income are called Diverted Payments or Diverted Wages. See [FSC 5706], Diverted Payments, or [FSC 5506], Diverted Wages.

Demonstration project cash-out funds are excluded as income. Cash-out funds are in-kind or vendor payments that have been converted to direct cash payments under the approval of a federally authorized demonstration project. If the in-kind or vendor payment would have been excluded as income, the cash-out funds will also be excluded as income. Under these provisions, money received from the Cash and Counseling Demonstration Project for Medicaid recipients is excluded as income. This program, which is operational in Arkansas, provides cash to certain Medicaid recipients so they can purchase personal care services.  The Independent Choices Program is a cash and Counseling Demonstration Project. NOTE: See FSC 5707 for instructions if the attendant care provider is a household member and the funds come from a source other than a Demonstration project under the Cash and Counseling Demonstration Project.

5413.2 Individual Development Accounts Matching Payments           

See FSC 5405, item 16 for information about SSI PASS plans.

When a Family Self-sufficiency program participant has an increase in earnings, the public housing authority increases his or her rent, but deposits the increase in an interest bearing account.  When the participant successfully completes the program and can verify that no household member is receiving welfare assistance, he or she receives the funds in the account.  Funds may be withdrawn from the escrow account before completing the program, with permission from the housing authority, but only for purposes related to the goal of the FSS contract, e.g. - completion of higher education, job training or start up costs of a small business. 

Matching funds deposited into any of the following Individual Development Accounts (IDAs) will not be counted as income. 

Under the Family Savings Initiative Act of 1999 (Act 1217) households with low income and few assets may accumulate assets by opening an individual development account (IDA).  An IDA Program participant must be a resident of the State of Arkansas and a TEA recipient families or a member of a family with income below 185% of the federal poverty level.  The family must have a net worth of $10,000 or less disregarding their primary dwelling and one motor vehicle.  Account contributions are matched at a rate of $3.00 for each $1.00 contributed by the account holder.  Matching dollars may not exceed $2,000 per account holder or $4,000 per household. 

A Family Savings IDA may be used for any of the following reasons:

Home purchase (limited to qualified first-time home buyers)*

Business capitalization*

Post secondary educational expenses*

Individual retirement account

Vehicle purchase or repair (if not the sole purpose of the IDA)

(* If Federal TANF funds are used as a match, only purposes 1, 2 and 3 are allowable.)

Any matching dollars deposited into the account are excluded as income.  (The value of the IDA is not a countable resource per FSC 4460.) 

The Good Faith Fund is operating a demonstration program called the Savings for Education, Entrepreneurship, and Down Payment (SEED) Program.  The Program helps 3 and 4 year old children and their families save and plan for college.  A savings account is opened and initially deposited with $500 which will be matched by $500 deposited by the Good Faith Fund.  Any deposits made by the household will be matched dollar for dollar by the Good Faith Fund.  Withdrawal from a SEED account requires two signatures – the account holder and a designated employee of the Good Faith Fund.  The Good Faith Fund will not permit withdrawal unless there is a documented emergency – e.g., so the child will not be without shelter or medical care.  Any deposits made by the Good Faith Fund into the child’s savings account will be excluded as income.  (The SEED account will be excluded as a resource per FSC 4460.).

An earned income tax credit will be excluded as income regardless of how the tax credit is received.

An earned income tax credit may be paid in a lump sum payment or as part of the employee's regular wages. When an earned income tax credit is paid as part of the employee's regular wages, the credit will be excluded before the earned income deduction is allowed.

Example - If gross earnings were $500 every two weeks and the household receives a $40 earned income tax credit, the earned income deduction will be based on $460 gross earned income.

With the exception of loans, excluded income will be verified at initial application only when questionable. Loans received by a household are always to be verified at initial application.

Excluded income will be verified at recertification or reported change if: 

1) the income is newly reported and is considered questionable;

or 

2) the income has been reported previously but information about the income is considered incomplete, inaccurate, inconsistent, or outdated.

See the [Glossary], definition of "Verification" for additional information.

Acceptable verification of loans is a statement signed by both parties that indicates the payment was a loan and must be repaid. For student loans, see [FSC 1622.3]. In questionable cases (e.g. - recurring loans from the same source are declared), an affidavit will be requested from the lender. The affidavit must establish that the loan is currently being repaid or that future payments will be made in accordance with an established schedule.

Acceptable verification of other questionable income includes statements from the provider of the income which establish the source of income; or collateral contacts that establish the source of the income.

For questionable irregular income, the verification must also establish the amount of income and the frequency of receipt.

Document:

1. The name of the member who receives the income;
2. The source of the income;
3. The amount of the income;
4. The frequency of receipt; and
5. The reason the income is being excluded.

When excluded income is questionable, document:

1. The reason the income is questionable; and
2. The verification obtained.

For loans document:

1. The amount of the loan;
2. The source of the loan;
3. The verification obtained; and
4. The repayment schedule.

If an affidavit is requested, document the reason the loan was considered questionable.

Wages and salaries received for services performed as an employee are earned income. Self-employment income is also considered earned income. (See [FSC 5600] for an explanation of the treatment of self-employment income.) Sources of earned income are listed below in alphabetical order.

·        Annual Bonuses

·        Attendant Care payments (except for payments under the Cash and Counseling Demonstration Project) when provided by an outside source and paid to another household member who is providing the attendant care

·     Contractual Income

·        Dependent Care payments when provided by an outside source and paid to another household member who is providing the dependent care

·        Diverted Wages

·        Military Pay

·        Sick Pay/Maternity Benefits

·        Rental Income (Under certain conditions as described in FSC 5715)

·        Training Allowances (Includes earnings under the Workforce Investment Act (WIA) Program.  These payments were formerly known as JTPA payments.)

·        VISTA payments

·        Wages and Salaries (Includes income from odd jobs)

An explanation of each type of earned income is contained in the following sections of policy.

Bonuses are monetary payments given to an employee by an employer in addition to the pay due to the employee. For example, if a farmer gives an employee a $500 cash gift at Christmas in addition to the employee's regular pay, the $500 is considered a bonus.

Only bonuses provided by an employer at approximately the same time and in about the same amount each year are annual bonus. For example, if a factory has a good year and gives all of its employees a one-time $100 bonus, the $100 payment will not be considered an annual bonus because no additional payments are expected. Conversely, if a factory routinely gives all of its employees a ham and a $100 bonus at Christmas, the $100 payment would be considered an annual bonus. Bonuses paid less frequently than yearly will be excluded as non-recurring lump sum payments.

See [FSC 7523.1] for instructions on handling these payments.

Annual bonuses that can be reasonably anticipated will be counted as earned income in the food stamp budget. This may require the calculation of a variable budget as explained in FSC 7523.3.

The household's certification period may be scheduled to end in the month before the household anticipates receipt of the annual bonus. This will allow the bonus to be counted in the month of receipt and deleted for any months remaining in the certification period.

Employees who derive their annual income under contractual arrangements must have their income prorated over a 12 month period. A contractual arrangement exists if the employee and employer have a written agreement that stipulates, at a minimum, the annual or monthly salary. Individuals paid on an hourly or piece work basis will not have their income prorated over a 12 month period. The school income of school teachers and school administrators must be annualized.

If the period specified on the contractual agreement is for less than a year, the income will be prorated over the contract period. (This statement will not apply to school teachers or administrators whose annual income is paid in less than 12 months.)

Land rent received on an annual basis is also considered contractual income. See [FSC 5715] since this is usually considered unearned income.

Diverted Wages are wages which are legally obligated and payable to the household, but diverted by the employer. Situations where diverted wages should be counted as income include, but are not limited to:

1. The employer owes wages to a household, but diverts them instead to pay for a household expense such as a house payment, doctor bills, utility expenses, etc; 

   or

2. The employer holds money out of the paycheck as a result of a garnishment.

Example: Mr. Smith is behind in his rent. The landlord agrees to let Mr. Smith work out his rent at $3.35 per hour by washing cars at the landlord's used car lot. The rent is $150 per month. Mr. Smith actually works 50 hours. The landlord gives him a check for $17.50 which is the difference between the rent and the amount Mr. Smith has earned.

Since this is money applied to the household expense which would otherwise be payable to the household, the caseworker will count $167.50 as earned income in the food stamp budget. $150 will be allowed as rent.

Child support being withheld by the employer is deductible as instructed in [FSC 6550]. The deduction may be allowed even if the child support is being diverted to pay an expense for the child's household. For example, if part of the employee's pay is withheld by the employer and used to pay his ex-wife's rent in lieu of child support, the amount withheld would be deductible.

Earned sick pay is defined as regular wages paid during the time an employee is absent from work due to either illness or maternity leave if:

1. The payee is still considered to be an employee and plans to return to work; and
2. The sick pay is received directly from the employer's funds.

Earned sick pay will be counted as earned income.

See [FSC 5405] for a list of payments, including certain training allowances, excluded by law.

NOTE: The earnings of individuals participating in on-the-job training programs under a Workforce Investment Act (WIA), which was formerly known as JTPA, are counted as income unless the participating member is under 19 years of age and under the parental control of another adult member. See [FSC 5405].

Under the Family Investment Centers program, the Department of Housing and Urban Development provides families public housing and Indian housing with services such as child care, employment training and counseling, literacy training, computer skills training, and assistance in getting a GED. The value of these services will not be counted as income. However, wages and/or stipends paid under this program will be counted as earned income.

The Trade Adjustment Act (TAA) and Trade Readjustment Act (TRA) are designed to help workers who lost jobs due to the effects of imports. Benefits provided under these Acts include retroactive unemployment insurance payments, vocational training, classroom training and per diem for out-of-town interviews. Funds paid under either of these acts must be counted as unearned income.

When an employer provides money and this money is to be repaid directly, the money will be considered to be a loan. Loans are excluded as income. See [FSC 5408].

Money provided in advance by an employer for expenses which will be incurred during the course of the job will be considered a reimbursement. See [FSC 5411].

In most instances, income from odd jobs will be treated as self- employment income. The worker will obtain a gross monthly income figure, will exclude any expenses (e.g. gas for a lawn mower) and will allow the earned income deduction. See [FSC 6200] for an explanation of the earned income deduction.

To obtain the gross monthly income from odd jobs, the county office worker will:

• Obtain an average figure using the actual income from odd jobs for at least the last two month period; or
• Anticipate the household's income from odd jobs based upon the household's income for any previous months along with the household's statements regarding any anticipated changes; or
• Base the anticipated income upon the statements of collateral contacts; or
• Use some other reasonable method of determining the monthly income.

The worker must document exactly how the household's gross monthly income from odd jobs was determined. If any expenses are excluded, these must be fully documented. This includes the type of expense, the amount excluded, and any verification obtained.

If any of the household members is capable of maintaining a record of the income from odd jobs, the worker will request that such records be maintained to be used as income verification. (This is not a requirement. Even if a member of the household appears capable of maintaining a record of odd job income, the household's application will not be denied for failure to produce such a record.) If a member routinely does odd jobs for the same person or persons, odd job income may be verified through collateral contact with these people. If no verification of odd job income can be obtained, the household will be interviewed regarding the odd job income, and the household’s statements regarding this income will be accepted.

1. The most recent consecutive check stubs that accurately portray the individual's income.
2. An Earnings Statement (DCO-97) properly completed by the employer or designee and containing weekly earnings if a history of earnings is available.
3. A signed statement from the employer that indicates the date of the most recent consecutive pay periods and the gross amount received at each pay period.
4. A copy of the employer's wage records for the most recent consecutive pay periods.
5. Telephone contact with the employer.
6. An Check Verification Form (DCO-70) indicating the gross amount of each of the most recent checks.
7. Pay envelopes if properly dated and indicating the gross pay.

If none of these items are available and the household has not changed employers, one of the following items may be used as verification of earned income.

• Employee's W-2 Form - (for monthly income divide yearly wages by twelve).
• State or Federal Income Tax Returns - (for monthly income divide yearly wages by twelve).
• The most recent information appearing on the WESD "Wage Screen - (for monthly income divide quarterly wages by three).
• State Income Tax Bureau - (most recent wages reported).

No household will be denied food stamp benefits solely because someone outside the household failed to cooperate with a request for verification. The term "outside the household" will not apply to ineligible students, ineligible aliens, or to individuals disqualified or ineligible for one of the following reasons: a) intentional program violation; b) failure to provide a social security number; c) noncompliance with the work registration requirements; d) noncompliance with the workfare requirements e) noncompliance with the Requirement to Work; f) fleeing felons; or g) conviction of a drug related felony.