PM 08-02-02: Earned Income

WAG 08-02-02.

New InformationSee policy memorandum dated 10/03/13 Verifications for Medical Programs.

New InformationSee Medical Morsel dated 04/01/14 Electronic Verifications for Medical Programs.

Earned income is wages or salary for work performed as an employee, or profits from a person's self-employment.

Clients who receive tips from their work must report them as income. If tips are recorded on the client's wage stubs, use that amount as the amount of their tips.

If the amount of tips is not recorded on their wage stubs, ask the client to provide proof of the amount of their tips. If the client cannot provide the needed proof and no other proof is available, accept the client's statement about the amount of their tips.

Payments received for jury duty or serving as an election judge are budgeted as earned income. This includes any payments for mileage, meals, etc.

Wages or salary received as income in kind is exempt when determining eligibility and benefit amount. Income in kind is a benefit paid in behalf of a person, but not paid directly to them, or a benefit received in a form other than money.

Wages earned by clients working in earned income producing projects such as shelter workshops, are eligible for earned income exemptions and expenses of employment. If expenses exceed gross income, do not deduct more expenses than there is income.