Ariz. Admin. Code § 6-5-4914

Current through Register Vol. 30, No. 50, December 13, 2024

Section R6-5-4914 - Income Eligibility Criteria

A. Child Care Assistance Without Regard to Income. The Department shall not determine income eligibility for Child Care Assistance for the following:

1. Jobs participants who need Child Care Assistance to participate in the Jobs Program, and who are referred to CCA as prescribed in R6-5-4904(B).

2. Cash Assistance participants who need Child Care Assistance to maintain employment.

3. CPS referred families, and CPS or DDD foster families who need Child Care Assistance as documented in a CPS or foster care case plan, and who are referred to CCA as prescribed in R6-5-4904(B).

B. Child Care Assistance With Regard to Income. The Department shall determine income eligibility for Child Care Assistance for the following:

1. Former Cash Assistance participants who need Child Care Assistance to maintain employment as prescribed in R6-5-4916(A).

2. Clients who are not Cash Assistance participants but who need Child Care Assistance to maintain employment.

3. Teen parents who need Child Care Assistance for educational activities as prescribed in R6-5-4912 (A)(4).

4. Clients who need Child Care Assistance because they are unable or unavailable to care for their own children due to physical, mental or emotional disability, participation in a drug treatment or court-ordered community service program, or residency in a homeless or domestic violence shelter as prescribed in R6-5-4912(A)(6).

C. Income Maximum for Child Care Assistance. The Department shall determine income eligibility by calculating the gross monthly income of all family members included in family size unless otherwise excluded as prescribed in subsections (D), (E), (F), and (H).

1. If the gross monthly income for the family is equal to or less than 165% FPL, the family meets the income eligibility requirements for Child Care Assistance.

2. If the gross monthly income for the family exceeds 165% FPL, the family does not meet the income eligibility requirements for Child Care Assistance.

D. Family Size Determination. The Department shall include the countable income of every person included in family size for the purpose of determining income eligibility as prescribed in this subsection.

1. Family size shall consist of:

a. The applicant for Child Care Assistance;

b. The applicant's natural, adoptive, and step children;

c. Any other parent or responsible person living in the household who is legally and financially responsible for either the applicant, or for the children needing care;

d. The children of the other parent or responsible person residing in the same household; and

e. The tax claimant under subsection R6-5-4914(D)(3).

2. When a parent applies for Child Care Assistance for a natural, adoptive, or step child, the Department shall:

a. If the applicant and other adult in the household are married, or have children in common who need child care, make one family size determination for the family.

b. Count the income of both parents.

3. When a tax claimant resides in the household with a parent who is applying for or receiving Child Care Assistance, the Department shall include the tax claimant in family size if:

a. The tax claimant states an intention to claim any of the following members of the eligible family residing in the same household as a dependent on the tax claimant's federal or state income tax return for the current calendar year:

i. The parent who is the applicant;

ii. The parent's natural, adoptive, or step children less than 18 years of age;

iii. The parent's spouse;

iv. The other parent of the children for whom assistance is requested, or who are receiving Child Care Assistance; or

v. The dependent children of the other parent residing in the household, and who are included in family size.

b. The tax claimant signs a declaration stating the intention to claim specific members of the eligible family as tax dependents for the current calendar year.

4. The Department shall include the tax claimant's dependent children under age 18 and spouse residing in the same household in family size.

5. When the applicant and his or her spouse are legally married and do not reside in the same household, but have the intention of remaining a family, the Department shall include the spouse in family size if the absent spouse is engaged in an eligible activity under R6-5-4912.

6. When a caretaker relative applies for Child Care Assistance for another related child only:

a. Family size shall consist of the other related child or children only; and

b. The Department shall exclude both the caretaker relative and his or her spouse from the family size determination.

7. When the applicant applies for Child Care Assistance for natural, adoptive, or step children, and also for another related child, the Department shall make one family size determination for the family:

a. Family size shall consist of the applicant, the applicant's child, any other related eligible children who need care, and any other parent or responsible person in the household.

b. Any income received by or for an "other related" child less than 13 years of age shall be counted.

c. If there is another relative in the household who states an intention to claim an other related child as a dependent for income tax purposes, this tax claimant must be the applicant for the child. The Department shall determine family size separately for this child under R6-5-4914(D)(6).

8. When an unwed minor parent applies for Child Care Assistance for his or her own child, and resides with his or her parents:

a. The Department shall include the following in family size, unless the minor parent or the minor parent's children are tax dependents as described under subsection (d) below:

i. The minor parent; and

ii. The minor parent's child.

b. The Department shall not include the parents and siblings of the unwed minor parent in family size.

c. The Department shall deem a portion of the monthly gross countable income received by the parent of the minor parent to be available to meet the needs of the unwed minor parent and his or her children as described in this subsection, unless the parent of the minor parent is a tax claimant, under subsection (d) below.

i. The Department shall calculate the monthly gross countable income of the parents of the unwed minor parent;

ii. The Department shall subtract the amount of monthly gross countable income that equates to 165% FPL as specified in Appendix A, for the number of parents and siblings of the unwed minor parent residing in the same household only; and

iii. The Department shall count the remaining monthly gross countable income received by the parents of the unwed minor parent as available to meet the needs of the unwed minor parent and his or her children in the income eligibility determination.

d. If a parent of the minor parent is a tax claimant who intends to claim the minor parent or the minor parent's child as a tax dependent, the Department shall determine family size as follows:

i. The Department shall include the tax claimant, the tax claimant's spouse, and the tax claimant's dependent children residing in the same household in family size with the minor parent, and his or her child; and

ii. The Department shall count all countable income received by the tax claimant and the tax claimant's spouse in the income eligibility determination.

9. When a married, separated, widowed, or divorced minor parent applies for Child Care Assistance for his or her own children:

a. The Department shall include the minor parent and his or her own dependent children in family size;

b. The Department shall include monthly gross countable income received by the minor parent and the other parent or responsible person residing in the home in the income eligibility determination;

c. The Department shall not consider income received by the parent of the minor parent in the income eligibility determination, unless the parent of the minor parent is a tax claimant, under subsection (8)(d); and

d. The Department shall not include parents and siblings of the minor parent in family size, unless the parent of the minor parent is a tax claimant, under subsection (8)(d).

10. If a tax claimant included in family size is also a parent who needs Child Care Assistance for his or her own child, the tax claimant shall submit a separate application.

a. The Department shall make a separate eligibility and family size determination for the tax claimant's dependent children less than age 18.

b. The Department shall include the parent, spouse or other parent or responsible person, and their dependent children in family size.

11. When a guardian applies for Child Care Assistance for a child in guardianship only, the Department shall:

a. Make one family-size determination for the child in guardianship.

b. Include all children in guardianship in family size.

c. Exclude the guardian and the guardian's spouse from family size.

d. Count the income received by or for the children in guardianship.

e. If the parent of the child needing care is also in the household, the Department shall not include the parent in family size; and shall not count his or her income.

12. When the applicant applies for Child Care Assistance for natural, step, or adoptive children in addition to the children in guardianship, the Department shall:

a. Make one family-size determination.

b. Include in family size the applicant, the applicant's children, the children in guardianship less than 13 years of age who need care, and any other parent or responsible person in the household.

c. Count the applicant's and other parent's or responsible person's income.

d. Count the income received by or for the children in guardianship less than 13 years of age.

13. When a foster parent applies for Child Care Assistance for his or her own children:

a. The Department shall include the applicant, other parent or responsible person, and their children in family size; and

b. The Department shall not include the foster child in family size unless the foster child is a relative.

E. Verification of Tax Claimant Status

1. The Department shall verify tax claimant status as described in R6-5-4914(D) by requiring:

a. The client to submit a signed and dated declaration stating that no relative 18 years of age or older residing in the same household intends to claim any member of the eligible family as a tax dependent for the current calendar year; or,

b. The client and the relative 18 years of age or older residing in the same household who intends to claim a member of the eligible family as a tax dependent for the current calendar year to:

i. Submit a signed and dated declaration stating that fact; and,

ii. State the name of the family member whom the relative intends to claim as a tax dependent.

2. The Department shall include the tax claimant, his or her spouse, and dependent children in family size upon receipt of the signed declaration.

3. If the tax claimant no longer intends to claim a member of the eligible family as a tax dependent, the client must sign and date a new declaration.

a. The new declaration shall specify that the tax claimant no longer intends to claim a member of the eligible family as a tax dependent.

b. The Department shall remove the tax claimant, tax claimant's spouse, and his or her dependent children from family size after receipt of the signed declaration.

F. Countable Income. The Department shall count the gross monthly income of a family as prescribed in subsection (D); countable income shall include:

1. Gross earnings received for work including wages, salary, armed forces pay (with the exception of specifically designated allotments for food and shelter costs), commissions, tips, overtime, piece-rate payments, and cash bonuses earned, before any deductions.

2. Net income from non-farm self employment including gross receipts minus business expenses. Gross receipts include the value of all goods sold and services rendered. Business expenses include costs of goods and services purchased or produced, rent, heat, light, power, depreciation charges, wages, and salaries paid, business taxes, and other expenses incurred in operating the business. The value of salable merchandise consumed by the proprietors of retail stores is not included as part of net income. Payments on loans or mortgages obtained to increase capital investments in property or equipment are not allowed as deductible expenses.

3. Net income from farm self employment which includes gross receipts minus operating expenses. Gross receipts include the value of all products sold, government crop loans, money received from the rental of farm equipment to others, and incidental receipts from the sale of wood, sand, gravel, and similar items. Operating expenses include costs of feed, fertilizer, seed, and other farming supplies, wages paid to farmhands, depreciation charges, cash rent, interest on farm mortgages, farm building repairs, farm taxes, and other expenses incurred in operation of the farm. The value of fuel, food, or other farm products used for family living is not included as part of net income. Payments on loans or mortgages obtained to increase capital investments in property or equipment are not allowed as deductible expenses.

4. Social Security payments prior to deductions for medical insurance including Social Security benefits and "survivors" benefits, and permanent disability insurance payments made by the Social Security Administration.

5. Railroad retirement insurance income.

6. Dividends including interest on savings, stocks and bonds, income and receipts from estates or trusts, net rental income or royalties, receipts from boarders or lodgers (net income received from furnishing room and board shall be 1/3 of the total amount charged). Interest on Series H. United States Government Savings bonds.

7. Mortgage payments received shall be prorated on a monthly basis.

8. Public assistance payments including payments from the following programs: Cash Assistance, Supplemental Security Income (SSI), State Supplementary Payments (SSP), General Assistance (GA), Bureau of Indian Affairs General Assistance (BIAGA), and Tuberculosis Control (TC).

9. Pensions and annuities including pensions or retirement benefits paid to a retired person or their survivors by a former employer or by a union, or distributions or withdrawals from an individual retirement account.

10. Unemployment Insurance payments including compensation received from government unemployment insurance agencies or private companies during periods of unemployment, and any strike benefits received from union funds.

11. Workers' compensation payments.

12. Money received from the Domestic Volunteer Act when the adjusted hourly payment is equal to or greater than minimum wage; Action Volunteer Programs include VISTA, Foster Grandparent Program (FGP), Retired Senior Volunteer Program (RSVP), and Senior Companion Program (SCP).

13. Alimony or spousal maintenance which shall be counted the month received.

14. Child support which shall be counted the month received.

15. Veterans' pensions including benefits and disability payments paid periodically by the Veterans Administration to members of the Armed Forces or to a survivor of deceased veterans.

16. Cash gifts received on a monthly basis from relatives, other individuals, and private organizations, as a direct payment in the form of money.

17. Money received through the lottery, sweepstakes, contests, or through gambling ventures whether received on an annuity or lump sum basis.

18. Any other source of income not specifically excluded in subsection (F).

G. Excluded Income. The Department shall exclude the items listed in this subsection when determining a family's gross monthly income.

1. Per capita payments to or funds held in trust for any individual in satisfaction of a judgment 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;

3. Money or capital gains received as a lump sum, from the sale of personal or real property, such as stocks, bonds, 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. Withdrawals of bank deposits;

5. Loans; money borrowed;

6. Tax refunds;

7. Any monies received through the federal Earned Income Credit (EIC);

8. One time lump sum awards or benefits, including:

a. Inherited funds;

b. Insurance awards;

c. Damages recovered in a civil suit;

d. Monies contributed by a client to a retirement fund that are later withdrawn prior to actual retirement; and

e. Retroactive public assistance payments;

9. The value of U.S. Department of Agriculture (USDA) Food Stamps;

10. The value of USDA-donated food;

11. The value of any supplemental food assistance received under the Child Nutrition Act of 1966 and special food service program for children under the National School Lunch Act, the Women, Infant, and Children Program (WIC), Child and Adult Care Food Program (C.A.C.F.P.), and the School Lunch Program;

12. Any payment received under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (for example, Navajo/Hopi Relocation Act);

13. Earnings of a child who is under the age of 18 and attending high school or other training program, and who is not a minor parent who needs Child Care Assistance for his or her own child;

14. Home produce used for household consumption;

15. Government-sponsored training program expenses (TRE payments) such as: training-related expenses paid to JOBS participants and Job Training Partnership Act (JTPA) training expenses paid directly to the client;

16. The value of goods or services received in exchange for work;

17. Interest on Series E, United States Government Savings bonds;

18. Foster care maintenance payments received for care of foster children;

19. Adoption subsidy payments received for the care of adopted children;

20. Educational loans, grants, awards, and scholarships regardless of their source, including Pell Grants, Supplemental Educational Opportunity Grants (SEOG), Bureau of Indian Affairs (BIA) Student Assistance Grants, college work-study income, Carl D. Perkins Vocational and Applied Technology Education Act income, and any other state or local, public, or private educational loans, grants, awards, and scholarships;

21. Money received from the Domestic Volunteer Act when the adjusted hourly payment is less than minimum wage; Action Volunteer Programs include VISTA, Foster Grandparent Program (FGP), Retired Senior Volunteer Program (RSVP), and Senior Companion Program (SCP);

22. Housing and Urban Development (HUD) benefits, cash allowances and credits against rent;

23. Vendor payments including payments made directly to a third party by friends, relatives, charities, or agencies to pay bills for the client;

24. Vocational Rehabilitation training-related expenses (TRE) which are reimbursements for expenses paid. Subsistence and maintenance allowances, and incentive payments not designated as wages;

25. Disaster relief funds and emergency assistance provided under the Federal Disaster Relief Act, and comparable assistance provided by a state or local government, or disaster assistance organization;

26. Energy assistance including all state or federal benefits designated as "energy assistance" or assistance from a municipal utility or non-profit agency;

27. Agent Orange payments;

28. Any other income specifically excluded by applicable state or federal law.

H. Income Deduction. Child support that is paid for dependents who do not reside in the same household with the eligible family shall be deducted from the monthly gross countable income prior to income calculation and fee level and copayment assignment as prescribed in subsection (I) and R6-5-4915.

I. Income Calculation. The Department shall calculate monthly income as prescribed in this subsection.

1. The Department shall include all income of all family members included in the family-size determination, other than income excluded as prescribed in R6-5-4914(F) in the determination of income eligibility.

2. The Department shall calculate a monthly figure for each source of income separately with the appropriate method used for calculation.

3. After calculating monthly income for each source of income, the Department shall add the monthly amounts from each source to obtain the total monthly income.

4. The Department shall convert income received less often than monthly to a monthly figure as provided in this subsection.

a. The Department shall prorate the total income over the number of months that the income is intended to cover.

b. If the income is received on or after the date of application, a monthly share of income shall be considered beginning with its earliest possible effective date and for a number of months equal to the number of months which the income covers.

c. If the family receives the income prior to the date of application, the number of months that the income is intended to cover shall be equal to the number of months of coverage remaining.

5. The Department shall anticipate income for a current or future month based on the averaged income received in the most recent 30-day period, unless the Department receives new information that indicates that the income has changed, as verified under subsection (J).

a. If the income received by the household has increased due to receipt of a new source of income, an increased work schedule, or a raise in salary or wages, the Department shall calculate the gross monthly countable income for the household based on the amount of income anticipated to be received on a monthly basis. The Department shall begin counting the new or increased income as described under subsection (6).

b. If the income received by the household has decreased due to loss of a source of income, a decreased work schedule, or a reduction in salary or wages, the Department shall cease counting the income effective the date that the client provides verification of the loss or reduction in income.

6. When a family receives a new or increased income source that will be received monthly, weekly, bi-weekly, or semi-monthly:

a. The income shall not be considered available to the family until the date that the first full payment is received.

b. The Department shall not assess a new fee level or ineligibility to the client until the monies are available.

c. Once the client has already received the payment that includes the new or increased income source, and a higher fee level or ineligibility results:

i. The Department shall increase the fee level or terminate assistance no earlier than 10 days after the first full paycheck has been received; and

ii. The Department shall send a 10-day negative action notice prior to increasing the fee level or terminating assistance.

7. The Department shall convert income received more often than monthly, for a period covering less than a month, to a monthly amount by one of the methods listed below.

a. If the income amount does not vary and is received monthly, weekly, bi-weekly, or semi-monthly, the conversion to a monthly amount will be obtained by multiplying the pay period amount by:

i. 1, if monthly;

ii. 4.3, if weekly;

iii. 2.15, if bi-weekly; or

iv. 2, if semi-monthly.

b. This amount shall be applied as income on an ongoing monthly basis until there is a change in the income.

c. If the monthly income received varies in amount and frequency, and exact monthly figures are unavailable, the Department shall use an average monthly figure.

8. When the Department calculates the gross monthly income for the family, the whole dollar amount only shall be used to determine income eligibility, and fee level and copayment assignment; any amount that is a fraction of a whole dollar shall be rounded down to the next whole dollar.

J. Verification of Income. The client shall verify income by providing written documentation of income as requested by the Department such as:

1. Pay stubs for the most recent calendar month, or for any month of potential overpayment;

2. Employer's statement verifying work schedule, hourly rate of pay, and frequency of pay;

3. Benefit award statements for the most recent benefit period;

4. Statements of account to verify interest income;

5. Quarterly or annual tax returns for the most recent quarter or year for self-employment income;

6. Self-employment log accompanied by gross sales receipts and business expense receipts for the most recent calendar month or quarter; and

7. Other written documentation from the source of the income indicating the amount of income received, source of income, frequency received, and naming the payee.

Ariz. Admin. Code § R6-5-4914

Adopted effective July 31, 1997, under an exemption from the provisions of A.R.S. Title 41, Chapter 6 (Supp. 97-3). Amended by exempt rulemaking at 13 A.A.R. 92, effective December 31, 2006 (Supp. 06-4).

The following Section was adopted under an exemption from the provisions of A.R.S. Title 41, Chapter 6, pursuant to Laws 1997, Ch. 300, § 74(A). Exemption from A.R.S. Title 41, Chapter 6 means the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Department did not submit these rules to the Governor's Regulatory Review Council for review and approval; and the Department was not required to hold public hearings on this Section.