County of San Diego Health and Human Services Agency HHSA Cash Assistance Program for Immigrants CAPI Program Guide Earned Income Number Page 991033 1 of 3 Revision Date August 1 2019 A Background Earned income includes Wages Net earnings from selfemployment Payments for services performed in a sheltered workshop or work activities center Royalties Honoraria Purpose This section is revised for the sunset review No Program rules have changed B Policy 1 Counting Earned Income The table below shows when and how earned income is counted based on the type of income Type of Earned Income WhenHow Counted Wages Each month when received Net earnings from selfemployment On a taxable year basis The yearly total is divided by the number of months in the taxable year to arrive at the monthly earnings Other earned income When it is received or set aside for the employees use 2 Earned Income ExclusionsDeductions Earned income exclusionsdeductions are applied in the order shown below 1 Earned income excluded by Federal law 2 Up to 10 of infrequent or irregular earned income 3 Up to 400month but not more than 1620year for blind or disabled children regularly attending school 4 Any portion of the 20month general exclusion not applied against unearned income in the same month 5 Earned income exclusion of 65month 6 Earned income used to pay IRWE for disabled but not blind individuals under age 65 see 3 below 7 Onehalf of the remaining earned income in a month 8 Earned income used for BWE by blind individuals under age 65 see 4 below 9 Earned income used to fulfill an approved PASS for blind and disabled individuals under age 65 see 5 below 3 IRWE IRWE are expenses for items or services directly related to enabling a disabled but not blind person to work and which are necessarily incurred because of a physical or mental impairment Typical expenses include medications and medical devices County of San Diego Health and Human Services Agency HHSA Cash Assistance Program for Immigrants CAPI Program Guide Earned Income Number Page 991033 2 of 3 Deduct the amount if IRWE paid in a month from the gross earned income for that month To qualify as an IRWE the Individual must be under age 65 Individual must have received CAPI benefits as a disabled individual for the month prior to age 65 Expense must be reasonable Expense must actually be paid and not reimbursable from another source for example Medicare private insurance 4 BWE Earned income used to meet any expenses reasonably attributable to the earning of income for a blind individual may be deducted from gross earnings as a BWE The blind person must Be under age 65 or Have received CAPI benefits as a blind individual for the month prior to age 65 Some of the more common deductions include federal and state income taxes cost of atwork meals and transportation 5 PASS A blind or disabled individual may set aside income or resources and have them excluded to fulfill a PASS The individual must be under age 65 or have received CAPI benefits as a blind or disabled individual for the month prior to age 65 Social Security reviews and approves a PASS for SSI recipients Workers will only see this for those individuals who previously received SSI and had a PASS approved during that time Common examples of PASS money usage are vocational training buying a vehicle or buying computer equipment any of which could reasonably be expected to assist the individual to become employed A PASS must Be in writing Be approved by SSA Include provisions for keeping any money saved for a PASS separate from other resources Outline and ultimately verify how much money was spent C Procedure Count earned income as stated in the policies above Other Program Impacts None References MPP 490353 and 4 ACL 9882 Sunset Date This policy will be reviewed for continuance by 08312022 County of San Diego Health and Human Services Agency HHSA Cash Assistance Program for Immigrants CAPI Program Guide Earned Income Number Page 991033 3 of 3 Approval for Release Rick Wanne Director Eligibility Operations