Effective Date: 09/01/03
Revised:  10/12/07
Reference:  89 Ill. Adm. Code, Chapter IV, §50.235

Policy Statement:

Include all non-exempt income received by a family in the income calculation.

Following is a list of non-exempt income:

  1. Gross wages and salary;
  2. Net income from farm self-employment;
  3. Net income from non-farm self-employment;
  4. Dividends, interest, net rental income, and royalties;
  5. Pensions and annuities;
  6. Alimony;
  7. Child support received by the family;
  8. Ongoing monthly adoption assistance payments from DCFS;
  9. Veteran's pensions;
  10. Unemployment compensation;
  11. Worker's compensation;
  12. Public assistance and welfare payments;
  13. Social security payments for all family members, including SSI and pensions;
  14. Survivor's benefits, permanent disability payments, and railroad retirement benefits from the federal government.

Procedure:

In addition to the non-exempt income listed above, other additions to income that must be included in the income calculation are as follows:

  1. Money received as an allowance for clothing, housing, etc. as is received in military and government wages.
  2. Travel Allowance
    Travel Allowance is money paid to an employee to cover anticipated travel expenses and is reported as earnings in Box 1 on IRS Form W-2. This is money paid to the employee irrespective of the costs incurred.
    Income received as a travel allowance must be included in the gross income calculation.
  3. Subsidized Guardianship Payments
    Subsidized guardianship payments are ongoing monthly financial assistance payments from the Illinois Department of Children & Family Services provided to the permanent legal guardian for the care of the child.
    Subsidized guardianship payments must be included in the gross income calculation.
  4. Subsidized Adoption Payments
    Subsidized Adoption Payments are ongoing monthly financial assistance payments from the Illinois Department of Children & Family Services provided to the adoptive parents for the care of the child.
    Subsidized adoption payments must be included in the gross income calculation.
  5. Americorp Payments (State and National and NCCIC only)
    Payments to certain Americorp volunteers are non-exempt income and must be included in the income calculation.
    1. AmeriCorps*State & National members
      1. These are members who volunteer for organizations that receive a grant from CNCS.
      2. They receive a living allowance from the grantee.
      3. CNCS and NACCRRA follow the state rules when calculating household income; state rules will be used to include, or not include, this living allowance when calculating the household income.
      4. They cannot receive a child care benefit for the same child from any other public source.
      5. The maximum benefit allowed is no more than the prevailing rate for the area in which the care is provided.
    2. AmeriCorps*NCCC (National Civilian Community Corps)
      1. These are members who reside on a campus administered by CNCS.
      2. A member rarely applies for a child care benefit. They will not request aid from the state. They cannot receive a child care benefit for the same child from any other public source.
      3. The maximum benefit allowed is $400 per child per month.
        To verify that an AmeriCorps member has applied for a child care benefit through AmeriCorps you may contact NACCRRA by calling Debra Scott at 703-341-4152 or Betty Underwood at 703-341-4115.
        Please use these same NACCRRA contacts to report any AmeriCorps member who you believe may be receiving duplicate child care benefits through both Americorps and another public source (such as CCDF).
  6. Tips
    A client who receives tips from their work must report them as income. If tips are recorded on the client's pay stubs, use that amount as the amount of their tips. The IRS requires an employee to use IRS Form 4070 to report their tips to their employer. This form can be used to verify tips that are not included on the employee's wage stubs.