Income Calculations

Income Calculations Income - the total of all countable income, excluding non-countable income (see below) received by the parent(s) or responsible adults of the child. A. Calculating Income - the CCPS calculates income automatically based on documentation provided by the applicant and entered into the system by MDHS staff. The following business rules are applied for calculations: 1) All income above or less than forty (40) hours per week is considered irregular income. Irregular income and commissions shall be averaged. 2) For commissions and tips, the amount on the check stub or statement from an employer shall be averaged over a period of twelve (12) months and added to regular work income. 3) Eligibility is based on gross income. 4) Parents who experience seasonal fluctuations in income must submit income documentation at initial application or redetermination which shows the increase is seasonal or irregular. A temporary increase in income, even if it exceeds the 85 percent of SMI, will not affect the eligibility of the parent. Irregular hours of employment, seasonal increase in income, commissions, bonuses, and tips are added to regular work income and averaged over a period of twelve (12) months. B. Countable Income: 1) Wages or salary (gross income of all adults in the family unit as defined in Chapter 2) 2) Base pay for military personnel 3) Gross income from self-employment 4) Unemployment compensation (redetermination only) 5) Worker’s compensation 6) Alimony (regular and ongoing payments) 7) Veteran’s benefits 8) Military allotments 9) Capital gains 10) Rental income (regular and ongoing payments) 11) Dividends (regular and ongoing payments) 12) Retirement/pension 13) Commission, bonuses, tips (averaged over 12 months) 14) Lump sum payments 15) Supplemental Security Income (SSI) benefits for both the parent(s) and child(ren) 16) Social Security Administration (SSA) benefits for both the parent(s) and child(ren) C. Non-Countable Income: 1) Spouse income, if separated and residing in a separate residence 2) Pell Grants 3) Student/Educational income 4) Student Scholarships 5) Student loans 6) Non-monetary or in-kind benefits 7) Vendor payments 8) Flexible Employee benefits 9) Earned Income Tax credits (EITC) 10) Loans 11) Census bureau income 12) Combat pay 13) Reimbursements 14) Unavailable income from trust fund 15) Energy assistance payments 16) Earned income of students under 18 17) HUD’s family self-sufficiency program 18) Gift cards 19) Income specifically excluded by other laws 20) Child support payments 21) Board payments for foster children 22) Short-term disability payments