Earned Income
What is earned income?
Income earned from working.
Chad pays his ex-wife court ordered alimony of $500/month. Is this a countable deduction?
Yes, as long as it was ordered by courts prior to January 1, 2019.
Eddie receives $400/month SSA and $250/month SSI. $75 is automatically deducted to go toward Medicare premiums. How much is countable toward his household's income?
$400. SSI is not countable. Payment withheld for premiums or taxes is not deductible; we always count the gross amount.
True or False: We can look up a client's self-employment income in ESD?
False. We do not have access to any systems that will verify someone's self-employment income.
A client calls asking for help with a 3085 error code. What should we look for?
A social security number in HPF that doesn't match SSN in ACES.
True or False: Tips are included when calculating wages?
True. Tips are considered countable income.
Gomer Pyle recently had $900 in moving expenses. What would make this a countable deduction?
Moving expenses are an IRS-allowable deduction only when the move was ordered by the military.
What is unearned income?
Income received from a source other than employment or self-employment.
Name three examples of documents we can use to verify wages.
Employer statement, payroll printout, wage stub.
What programs might a DACA recipient be eligible for?
N23, N31, N33, AEM.
Roger claims his 28-year old daughter as a tax dependent. She has a part-time job and earns less than $1000/month. Does her income count toward Roger's eligibility?
No. The income of tax dependents only counts when the dependent earns enough to be required to file taxes, currently $12,000/year.
True or False: Payments made to reduce the principle amount of a student loan are countable deductions.
False. Only the amount applied to student loan interest is deductible up to $2500/year. Payment toward the principle is not.
Maximillian takes a mandatory yearly withdrawal from an inheritance IRA. Is this countable income?
It is not. Any amount of income gained through an inheritance is not countable. If the inheritance generates other income (interest, etc), that would be countable.
Trudy started paying back student loans this year. The interest she paid is not shown on last year's tax returns. What else could she provide?
A statement from the lender showing the amount of interest paid.
Rosco lives with his grandparents who claim him as a tax dependent. What is Rosco's household size?
One.
Roger is an independent contractor working on a project for 12 months. When the project is complete, his client pays him a lump sum of $24,000. Is this countable?
Yes. While it may be tempting to consider this a one-time lump sum, Roger actually received a one-time payment for work done over a period of time.
Helen's wage stub shows a pre-tax salary reduction of $200/month toward a childcare flexible spending account. Is this a countable reduction?
Yes.
Roger is a member of a tribe that gives its members monthly distributions from tribal casinos. Is this countable income?
Yes.
Preston owns a corporation. He submits pay stubs showing the $1000/month the corporation pays him. What else do we need?
Verification of ordinary business income: P&L, tax returns, etc.
Where in ACES can we find a client's ProviderOne number?
Client level -> details -> medical information