Wisconsin Department of Children and Families - Division of Early Care and Education
Bureau of Child Care Subsidy Administration

Wisconsin Shares Handbook

Section 6.3 Disregarded Income

The income types listed below are excluded from the Wisconsin Shares financial eligibility test: 

• Overpayment collections that are withheld from Social Security, Unemployment Compensation or other programs that do not base eligibility on income and assets

• Child Support Payments: Court-ordered child support or family support payments if the total amount paid to the Assistance Group (AG) members for all children is $1,250 or less per month. Note: If the total amount exceeds $1,250 per month, the entire amount is counted as income in the Wisconsin Shares financial eligibility test.

• Earned Income and Supplemental Security Income (SSI) payments of Minor Dependents

• State and federal tax refunds  

• Any educational aid received under any state or federal program regardless of how the funds are used, including aid received under the GI bill

• Any educational scholarships or grants provided by public or private organizations that are used for tuition and books

• Work study income

• Foster Care, Kinship Care, Subsidized Guardianship, and Adoption Assistance payments

• Loans (including educational aid loans and private student loans)

• Reverse Mortgage Loan Proceeds (1993 Wisconsin Act 88)

• Job Access Loans

• W-2 payments (Community Service Job [CSJ], W-2 Transition [W-2 T], Custodial Parent of an Infant [CMC], At Risk Pregnancy [ARP], Stipends for Noncustodial Parents [TSP], or Case Management Follow-Up Plus [CMF+]), Emergency Assistance payments, and Wisconsin Shares subsidy payments

• Refugee Cash Assistance (RCA), Matching Grant program payments, and Reception & Placement assistance payments

• The wage subsidy portion of income from Trial Employment Match Program (TEMP), Transform Milwaukee Jobs (TMJ), or Transitional Jobs (TJ) according to the Employer Agreement Form

• Reimbursements: Money paid to the individual to reimburse actual expenses incurred or paid, or both. May include a per diem allowance for travel, uniforms, transportation, out-of-pocket expenses, medical reimbursements, or reimbursement for a volunteer’s out-of-pocket expenses incurred in the course of his/her work

• Gifts: Cash gifts, such as for birthdays, graduation, and holidays

• Earmarked Funds (previously titled “Windfalls”): Any amount received that is earmarked and used for the purpose it was paid, such as back medical bills from an accident or injury, funeral and cemetery costs, and replacement or repairs. For medical services which can be provided only at a future date: Disregard any amount earmarked for those services, provided there is a signed agreement specifying: the source and amount of the settlement; the purpose for which it is earmarked; that the amount is held in its own account; and that it is agreed to and understood that if all or part of the settlement is used for a purpose other than for what it is earmarked, that amount used will be considered available income and counted when determining eligibility and copayments

• Federally-funded Benefits: Any income from sources required to be disregarded by federal or state law. Such sources include, but are not limited to: Higher Education Act of 1965; Nutrition Program benefits from National School Lunch Act; Food Stamp Act of 1977; Child Nutrition Act of 1996; Indian Tribal Federal Settlements; Housing Act of 1949; Older Americans Act; Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970; Robert T. Stafford Disaster Relief and Emergency Act; Housing and Community Development Amendments of 1978, however, wages from the act may be counted as income; Low Income Energy Assistance Act of 1981; Old Age Assistance Claims Settlement Act; Workforce Innovation and Opportunity Act (WIOA): Adults, Rapid Response, and Dislocated Workers, National Emergency Grants, and Trade Adjustment Act, unless specifically earmarked for child care expenses

• AmeriCorps and/or VISTA: Exclude income if the stipend amount divided by the number of hours of activity equals less than minimum wage

• Operation Fresh Start: Disregard Operation Fresh Start income unless the agency director verifies that participants are receiving the equivalent of minimum wage. If the Operation Fresh Start participant is receiving minimum wage or more, count the income in determining gross income

• Indian Tribal Judgment Funds Use or Distribution Act: Disregard per capita shares and income of $2,000 per year or less. If the total amount exceeds $2,000 per year, the entire amount is counted as income in the Wisconsin Shares financial eligibility test

• Rehabilitation Act of 1973: Disregard wages, allowances or reimbursements for transportation or personal assistance services costs paid to reasonably accommodate an employee, such as a vehicle modification made to accommodate a disability or a payment by the Division of Vocational Rehabilitation to support a rehabilitation plan
  

This section last updated 12/1/2022