Regulation
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State regulation
requires in-kind income to be evaluated when an item of need for the
assistance unit (AU) is earned or is voluntarily contributed by a person or
an organization. |
Definitions |
·
In-Kind Income - any benefit received other than in
cash for an item of need. ·
Item of Need - shelter, utilities, food, and/or
clothing. · Private, Non-profit Organization - religious, charitable, educational, or other organizations as defined in Section 501(c) of the Internal Revenue Code. (Actual tax exempt certification from the IRS is not necessary.) |
Evaluation |
In-kind income is to be
evaluated when an item of need for the AU is earned or is voluntarily
contributed by a person or an organization. Non-need items provided to or earned by the AU are not considered
in-kind income and in-kind income cannot be assumed solely because the
applicant/recipient does not pay toward a need item. ·
Private,
Non-profit Organization - Any
in-kind income, whether a full or partial item of need, provided by a
private, non-profit organization is considered exempt as income. Note: A determination regarding the status of private
organizations can be made by contacting the organization. All such contacts
must be documented in the case record. ·
Full Items of need – When an AU receives full item of need for a full
calendar month from a source other than a non-profit organization, in-kind
income must be considered. ·
Partial Item of
Need – In-kind income for partial
items of need is exempt. A partial item of need is a need item provided for
less than a calendar month or a need item that is only provided in part. NOTE: A
full need item provided to only part of the AU is not considered a partial
item of need. |
Examples of In-kind Evaluation
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In-kind income values are neither assigned to nor deemed from persons
outside of the AU (i.e., excluded parent, stepparent, or senior parent). When
a member of the AU earns a full item of need, the appropriate income
disregards are allowed. EXAMPLES: 1) Recipient lives with friends who
live in military housing. Recipient
pays $100 to the friend each month until a separate residence can be
located. In-kind
income? No. 2) Same situation, but the friend
freely provides housing and utilities. In-kind
income? Yes. 3) A pregnant mother (not a minor
parent) lives with her parents. The parents will freely provide for her
needs. In-kind
income? Yes. 4) Parent maintains apartment house
in exchange for housing. In-kind
income? Yes. Earned in-kind, allow appropriate deductions. 5) CalWORKs parent resides with her
three children, the unaided spouse of the mother, and the spouse’s unaided
child. There are no common
children. The entire family lives in
housing provided by a relative. In-kind income? In-kind income would be counted for the
four members of the AU who have their full housing needs provided. In-kind is not deemed from family members
not in the AU. 6) An AU has a monthly rent expense
of $300. They have not been able to
make this payment in the last two calendar months. In-kind
income? No. In-kind income cannot be assumed because the AU does not pay
toward a need payment. |
Value of Need Item
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The “CalWORKs In-Kind Income Value Table” found in the “Aid Payment”
chapter is to be used to determine the value of need items received in-kind. Applicants/Recipients who have in-kind income deducted from the grant
must be advised of the right to submit evidence of the value of the need
items received, if they do not agree with the use of the in-kind values. For in-kind housing and clothing, the value used is the lesser of the table value or the net market value of the item received. For in-kind utilities and food, the value used is the lesser of the table value or the actual cost to the person who paid for the item. Acceptable evidence to document the net market value of in-kind items include, but not limited to:
When a need item is shared with the persons who are not members of the
AU or whose needs are not considered in the AU, the in-kind value attribute
to the AU is the lesser o the: ·
AU’s pro rata share
of the net market value; or ·
cost of the item; or · in-kind income table value for members of the AU. |
Special Situations |
Free Board and Lodging During Temporary Absence from Home In-kind income is to be
considered only to the extent that a temporary absence creates an additional
need for the family. When the need at
home remains the same there is no in-kind income. When the absence from home is
more than one month in-kind income is to be evaluated when a member of the AU
is absent and the absence creates an additional need for the family. The value of free board and
lodging received by a member of the AU during a temporary absence of not more
than one month is considered exempt. Military Housing When a member of the AU is in
the military and the family lives in housing provided by the military and the
Basic Allowance for Quarters (BEQ or BOQ) is not listed as income on the
Leave and Earnings Statement (LES), in-kind housing would be counted for the
members of the AU. Disaster Relief Payments Disaster Relief payments provided by the Federal Emergency Management Agency (FEMA) and by the Individual and Family Grant Program (IFGP) are not counted as income. When the payment is in the form of a full item of need provided in-kind, in-kind income would not be counted to the family. |
Nonneedy Relatives
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Income in kind will only be considered if the nonneedy relative
chooses to make a voluntary contribution to the AU. The HSS shall determine
if the nonneedy relative wishes to contribute income in kind to the support
of the child(ren) in his/her care. If he/she does so, the amount of a
contribution reasonably anticipated to be received shall be determined in
accordance to the in kind income value chart. |
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