01.02.02 - Non-Exempt Income

Effective Date: 07/02/20
Revised:  10/12/07; 01/01/13; 12/24/2013; 07/01/15, 07/06/15, 07/02/20, 10/30/20

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 base wages and salary;
   1. Calculated by multiplying the number of hours worked by the hourly wage plus tips, before any deductions
   2. If commission is on both check stubs or if on one check stub and amount is 15% or more than gross it will be considered.
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 (not including lump sum payments);
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.
15. Sick/Holidays/Vacation

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 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 GAP Solutions, Inc. Monday through Friday (excluding federal holidays) from 8:00 am to 6:00 pm EST at the toll-free telephone number 1-855-886-0687 to speak with a Child Care Coordinator. You may also contact GAP Solutions, Inc. via email at: americorpschildcare@gapsi.com  You may also contact Gap Solutions, Inc. 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
   1. A client who receives tips from their work must report them as income. Income from tips can be documented in the following ways:
      1. on the client's pay stubs, 
      2. IRS Form 4070, 
      3. a tips ledger or letter from the employer,
      4. a ledger completed by the client.
   2. If a client holds a job that would normally receive tips, especially when the hourly wage is below the State minimum wage, and none of the above documentation is available:
      1. instruct the client to begin documenting tips in one of the methods listed above,
      2. add 10% to the calculated monthly income amount
      3. reassess the income at the next scheduled Redetermination or if the client provides documentation of income from tips of less than 10%.
7. Income from family members that do not meet the definition of family in Section 01.01.02 is not counted towards the family's income for CCAP eligibility determination purposes.  This includes parents that are not living in the household for 30 days or more due to military service, incarceration, education or other reasons.