01.02.03 - Exempt Income

Effective Date: 07/01/20
Revised:  12/24/13, 07/01/15, 07/01/20, 10/30/20
Reference:  89 Ill. Adm. Code, Chapter IV, §50.235

Policy Statement:

Do not include exempt income received by a family in the income calculation.

Following is a list of exempt income:

  1. Per capita payments to or funds held in trust for any individual in satisfaction of the Indian Claims Commission or the Court of Claims;
  2. Payments made pursuant to the Alaska Native Claims Settlement Act to the extent such payments are exempt from taxation under Section 21(a) of the Act (43 USC 1620 (a);
  3. Money received from sale of property, such as stocks, bonds, a house, or a car (unless the person was engaged in the business of selling such property, in which case the net proceeds would be counted as income from self-employment);
  4. Pay for overtime, incentives, bonuses, travel reimbursements or other types of non-recurrent or inconsistent income that is not part of the family's base income will not be considered. 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.
  5. Money borrowed, including education loans to a student who is included in the family unit as authorized in Section 50.210(c);
  6. Withdrawals of bank deposits;
  7. Tax refunds, or any Earned Income Tax Credit (EITC) payments;
  8. Gifts;
  9. Lottery winnings or proceeds obtained by gambling;
  10. Lump sum inheritances or insurance payments;
  11. Capital gains;
  12. The value of the coupon allotment or Supplemental Nutrition Assistance Program (SNAP) benefits under the Food Stamp Act of 1977 (PL 95-113) or the Food and Nutrition Act of 2008 (PL 110-246), as amended;
  13. The value of United States Department of Agriculture (USDA) donated foods;
  14. The value of supplemental food assistance under the Child Nutrition Act of 1966 (42 USC 1771 et seq.) and the special food service for children under the National School Lunch Act (42 USC 1751 et seq.), as amended;
  15. Any payment received under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 USC 4651);
  16. Earnings of a child under 21 years of age (unless that child is the applicant);
  17. Grants such as scholarships, obtained and used by a student who is included in the family unit as authorized in Section 50.210(c);
  18. Any grant or loan to any undergraduate student for educational purposes made or insured under any program administered by the Commission of Education under the Higher Education Act of 1965 (20 USC 1001 et seq.);
  19. Home produce utilized for household consumption;
  20. Energy grants or allowances received through the Low-Income Energy Assistance Program authorized by the Low-Income Home Energy Assistance Act of 1981 (42 USC 8625);
  21. Any DCFS foster care board payments or clothing allowance;
  22. Child support paid out of the family's income;
  23. Retro pay
  24. Lump sum child support
  25. Earned income from the Census Bureau for temporary census employment.


In addition to the exempt income listed above, following is other exempt income that is not included in the income calculation:

  1. Travel Reimbursement
    Travel Reimbursement is money paid to an employee that is intended to reimburse an employee for actual costs incurred for employment-related travel expenses.
    Income received as a travel reimbursement is exempt and must not be included in the gross income calculation.
  2. AmeriCorps*VISTA *
    These are members who receive a living allowance directly from The Corporation for National & Community Service (CNCS).
    1. By statute the living allowance CANNOT be considered as part of their household income for benefits such as child care. (Members of VISTA can, if asked, produce a letter verifying this.)
    2. 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 or the prevailing rate for the area in which the care is provided, whichever is the lower.

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).