3.2.2 Counting Income

To determine countable income for the 115% income test, the EA worker must choose the most appropriate of the following income test periods, depending on the situation of the applicant:

  1. Prospective income, making the best estimate to determine what income will be received by the applicant in the 30 days following the EA application date; or

  2. Actual earned and unearned income received in the 30 days prior to and including the EA application date.

Use W-2 policy for the following:

 

EXAMPLE 1:  Anita applied for EA on January 14. She has one child. Anita is employed but was off work from December 21 to January 4 due to an employer shutdown over the holidays. Her rent is past due, and she has received an eviction notice. Anita has returned to work but has not received another paycheck yet. Anita submitted the following check stubs to verify her employment in the 30 days prior to the EA application date:

Check stub dated 12/20        $255.00

Check stub dated 12/27        $274.13

The W-2 agency calculates that Anita's income in the 30 days prior to the EA application date was $529.13. Based on the EA group of two people, Anita meets financial eligibility as she has income less than 115% of the FPL.

 

EXAMPLE 2:  Porter applied for EA on August 7. He has one child. Porter is residing with friends temporarily but looking for a new place to live. Porter was employed but was laid off and is now receiving unemployment. Porter submitted the following check stubs to verify his employment income in the 30 days prior to the EA application date, and the W-2 agency uses CARES to verify the unemployment income.

Check stub dated 7/11                 $616.26

Unemployment income 7/25        $200.00

Unemployment income 8/1          $200.00

The W-2 agency calculates that Porter's income in the 30 days prior to the EA application date was $1,016.26. Based on the EA group of two people, Porter meets financial eligibility as the EA group's income is less than 115% of the FPL.

 

EXAMPLE 3: Winston was in an accident and due to his injuries is unable to work for several months while he recovers. He is currently living in temporary housing and needs to find a permanent place to live. The EA worker uses a prospective income test period to calculate the estimated income in the next month, which is more indicative of his current situation than the last 30 days due to the loss of income.

Since Winston is not currently working, doesn’t anticipate working for several months, and has no other income, the worker does not enter any income on the EA application. The worker continues to review the remaining eligibility requirements to determine eligibility in five working days.

 

 

History: Release 22-04; Release 21-01; Release 19-01.