218 R.I. Code R. 218-RICR-20-00-2.15

Current through November 7, 2024

Section 218-RICR-20-00-2.15 - Income

2.15.1Definition of Income

A. In determining need, it is necessary to know the amount and value of both actual and potential income. The income of a family includes all of the money, goods, or services received or actually available to any member of the family. Income is considered available both when actually available or when the applicant/recipient has a legal interest in a liquidated sum and has the legal ability to make such sum available for support and maintenance. It must be under the control of the individual during the period for which need is being determined or can be available, if action is taken by the individual to obtain it.

B. All income is taken into consideration in determining eligibility and need.

C. However, there are some types of income which are excluded and others that have modifications of the amount which is applied to the assistance plan.

D. Child's Income

1. A child's income includes the income of an ineligible parent(s) and stepparent with whom s/he is living. The applicant's/recipient's income includes that of her/his ineligible spouse in the home. A sponsored non-citizen's income includes the income deemed from the sponsor (and sponsor's spouse).

2. However, in a joint cash assistance/SSI household, the income of the SSI child or parent is not counted since it is already counted for SSI.

E. Documentation

1. The information the client supplies on the Application for Assistance and/or the Interim Report about income must be verified. Sources of verification include business records, wage stubs, income tax returns, award letters, other documents, as well as reports from Social Security, the Veterans' Administration, and other agencies. In some instances, when the individual is unable to obtain the information, the DHS representative may help to obtain the verification requested. The DHS representative may assist the individual in applying for other potential sources of income. The individual is advised that s/he must inform the agency of the results.

2. The agency uses computer matching by social security number on a regular basis with other public agency files (such as State employee payrolls, ESB and TDI records, State income tax files), and information obtained from the Social Security Administration and the Internal Revenue Service through the Income and Eligibility Verification System (IEVS) to document recipient information.

2.15.2Determining Eligibility

A. In determining both initial and continuing eligibility, the following procedures are followed:

1. Exclude any income identified in §2.15.3 of this Part.

2. Determine the gross earned income of all persons in the assistance unit (except the earnings of a dependent child).

3. Apply the earned income disregard to the earned income, if any.

4. Determine the unearned income of all persons in the assistance unit.

5. Total the earned income after disregards and unearned income; compare with the appropriate assistance standard for the unit.

2.15.3Excluded Income

A. COVID-19 Crisis and the National Emergency Emergency financial relief was provided under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. Law 116-136), the Consolidated Appropriations Act, and the American Rescue Plan Act in 2020 and 2021 (Pub. Law 117-2), in response to the Coronavirus Disease 2019 (COVID-19) and the National Emergency and was issued to most individuals as Economic Impact Payments in the form of automatic tax credits or rebates, disbursed by the Treasury Department. When received, these payments were not treated as countable income and were not subject to Federal income tax. These payments are also excluded as a resource for a twelve (12) month period, from the time of receipt, when determining program eligibility.

B. In determining need and the amount of benefits for cash assistance the following types of income are excluded:

1. Income received by any family member who is receiving Supplemental Security Income (SSI) assistance under Title XVI of the Social Security Act (42 U.S.C. 1382 §1612t;

2. Value of assistance provided by State or Federal government or private agencies to meet nutritional needs including: value of USDA donated foods; value of supplemental food assistance received under the Child Nutrition Act of 1966 (Pub. Law 111-296), as amended; the special food service program for children under Title VII; Nutrition program for the Elderly of the Older Americans Act of 1965 (42 U.S.C. § 3058), as amended; and the value of food assistance benefits;

3. The value of certain assistance provided to undergraduate students including: any grant or loan for an undergraduate student for educational purposes made or insured under any loan program administered by the U.S. Commissioner of Education (or the Rhode Island board of governors for higher education or the Rhode Island higher educational assistance authority);

4. Foster care adoption and guardianship assistance payments are excluded when the adopted child is not included in the RI Works household;

5. Home energy assistance funded by State or Federal government or by a nonprofit organization;

6. Payments for supportive services or reimbursement of out-of-pocket expenses made to foster grandparents, senior health aides or senior companions, and to persons serving in SCORE and ACE and any other program under Title II and Title III of the Domestic Volunteer Service Act of 1973 (42 U.S.C. § 4951et seq.);

7. Payments to volunteers under VISTA (payments to volunteers under AmeriCorps are NOT excluded);

8. Certain payments to native Americans; payments distributed per capita to, or held in trust for, members of any Indian tribe under 20 C.F.R. § 416.1234; receipts distributed to members of certain Indian tribes which are referred to in 25 U.S.C. § 459e that became effective October 17, 1975;

9. Any portion of the refund of Federal income taxes, made to the family by reason of Internal Revenue Code 26 U.S.C. § 32 relating to the earned income tax credit (EITC) or earned income tax rebate, and any advance payment of such earned income credit made to such family by an employer;

10. Value of any State, local, or Federal government rent or housing subsidy, provided that this exclusion shall not limit the reduction in benefits provided for in § 2.18 of this Part.

C. Assistance from other agencies and organizations is disregarded in determining need and the amount of the payment.

D. Also, in determining what is income to meet need, the following are also excluded as income:

1. The value of home produce of an applicant/recipient utilized by him/her and his/her household for their own consumption.

2. Bona fide loans, educational assistance loans and grants, such as scholarships, obtained and used under conditions that preclude their use for current living costs.

3. Income equal to expenses attributable to the earnings of the income of a self-employed individual.

E. Exclusion of First Fifty Dollars ($50.00) of Child Support

1. The first (1st) fifty dollars ($50.00) of the child support payment paid in any month by a non-custodial parent of a child, or the actual amount of the child support payment if the payment is less than fifty dollars ($50.00), shall be paid to the family in which the child resides, and is excluded from the family's income. If more than one (1) non-custodial parent makes a child support payment to children living in the same family, there shall be only one (1) payment not to exceed fifty dollars ($50.00) paid to the family from the total child support collected.

2. The exclusion shall be applied in the initial month of eligibility. Support payments received in subsequent months are covered by the assignment as described in §2.15.7(B) of this Part.

3. The exclusion may also be applied to payments for child support owed and collected that are in excess of the RI Works grant and are issued to the family. See §2.15.7(C) of this Part for more information.

F. Earned Income Set Aside - effective July 1, 2021, (see R.I. Gen. Laws §40-5.2 - 10, as amended by Article 13), the earned income of any adult family member who gains employment while an active RI Works household member. The RI Works household makes the decision about whether and when to apply this earned income set aside. As requested by an adult household member, such income is excluded for the first (1st) six (6) months of employment in which the income is earned, or until the household's total gross income exceeds one hundred eighty-five percent (185%) of the Federal Poverty Level, unless the household reaches its sixty (60) month time limit first.

G. Veteran's Disability Pension - effective July 1, 2021 (see R.I. Gen. Laws § 40-5.2-10, as amended by Article 13), any veteran's disability pension benefits received as a result of any disability sustained by the veteran while in the military service is excluded as income.

2.15.4Earned Income

A. Earned income is income, in cash or in-kind, earned by an individual through the receipt of wages, salary, commissions, or profit from activities in which s/he is engaged as a self-employed individual or as an employee. It is counted as income only when it is received (or would have been received except for the decision of the recipient to postpone receipt) rather than when earned. It includes earnings over a period of time for which settlement is made at one given time. With respect to the degree of activity, income which the individual produces as a result of the performance of service, including managerial responsibilities, is classified as earned income. (Examples are income from a lodger or boarder and rental income.)

B. Earned Income from Wages

1. When earned income is from wages, the agency representative must determine the gross amount of wages.

2. Any legal attachment on wages is considered unavailable and is not counted in the determination of eligibility for and amount of RI Works. Under current law, the first (1st) fifty dollars ($50.00) of any pay is exempt from attachment, and no attachment can be placed on the wages of a current or former cash assistance recipient for one (1) year following the termination of assistance. If an attachment exists, the recipient is referred to Rhode Island Legal Services.

3. That portion of wages which represents the advance payment of the Earned Income Tax Credit (EITC) or earned income tax rebate is also disregarded as earned income.

C. Earned Income from Self-Employment. The income considered from self-employment is the difference between the amount of gross receipts and the amount of allowable operating expenses incurred in producing the income.

1. When a business is carried on at home, no part of the overhead is considered a business expense, except as specified in §2.15.4(C)(5) of this Part. Those self-employed work expenses directly related to producing the goods or services and without which the goods or services could not be produced shall be excluded.

2. However, items such as depreciation, personal business and entertainment expenses, personal transportation, purchase of capital equipment, and payments on the principal of loans for capital assets or durable goods are not allowable expenses.

3. The RIW Administrator, assistant administrator or RIW supervisor is available to assist staff in determining income from self-employment. In a memorandum directed to the RIW Administrator, assistant administrator or RIW supervisor, the agency representative must identify the type of assistance needed along with the necessary information on the business (for example, last year's income tax return, current bookkeeping records, and check books).

4. If, at the end of sixty (60) days, the business is not providing the recipient with enough income to attain economic self-sufficiency, the case must be submitted to the RIW Administrator, assistant administrator or RIW supervisor for review of continued eligibility.

5. Child Care Service Providers

a. Income received by a cash assistance applicant or recipient who provides child care services is considered earned income from self-employment. The income must be verified from information provided by the applicant/recipient.

b. For purposes of this section, child care services are defined as any care of a child or incapacitated adult for which the provider is remunerated whether by a public or private agency or a private party. The provider need not be a licensed Child Care provider.

c. Casual baby-sitting, for which the babysitter is paid, qualifies as "child care services."

d. Expenses of Providing Child Care

(1) The documented expenses incurred in earning such income are deductible. Such expenses include household items, wear and tear on household furnishings, and the increased cost of utilities if the service is provided in the provider's home.

(2) Special equipment needed for the individual in care and furnished by the provider is also deductible regardless of where the service is provided. The average total expense of providing child care is thirty-two dollars ($32.00) per week per child. (If the household can document cost in excess of the applicable average amount, the actual cost can be considered.)

(3) When the expense incurred in providing child care exceeds the amount paid by DHS or other payor to the child care provider, there is no income to be considered in determining eligibility and the amount of cash assistance payment. Conversely, the appropriate earned income disregard is applied toward any net income after expenses.

6. Income from Roomer or Boarder

a. When an applicant/recipient receives income from a roomer or boarder, the amount considered as income is computed by subtracting the following cost of maintaining such lodger or boarder.

b. Monthly Cost of Maintenance

(1) Roomer: $25.00

(2) Boarder: $124.00

c. However, if the household can document cost in excess of the amount indicated, the actual cost can be considered.

d. Board payments for a foster child paid by the Department for Children, Youth and Families to a cash assistance parent are excluded as income.

7. Rental Income

a. Countable rental income or net income from real property is subject to the appropriate earned income disregards.

b. When the applicant/recipient lives in the rental property, the tenant's share of the following property expenses is deducted from gross rental income to determine the amount of money to be applied as net income of the client:

(1) The interest portion of mortgage, taxes, insurance, water, sewer charges, and special monthly assessments for sewer installation; and

(2) The cost of the tenant's heat, gas, and electric if provided in the rent by the homeowner.

c. To determine the net income of a property owner-client living in a two-family dwelling, one half (1/2) of the expenses in §2.15.4(C)(7)(a) of this Part plus the expenses in §2.15.4(C)(7)(b) of this Part are deducted from the gross rental; in a three (3) family dwelling, two thirds (2/3) of the expenses in §2.15.4(C)(7)(a) of this Part plus the expenses in §2.15.4(C)(7)(b) of this Part are deducted; in a four (4) family dwelling, three fourths (3/4) of the expenses in §2.15.4(C)(7)(a) of this Part plus the expenses in §2.15.4(C)(7)(b) of this Part are deducted.

d. When the client does not live in the rental property which is within the five thousand dollar ($5,000.00) Resource Limit, the income is determined by subtracting from the gross rental income, the expenses of maintaining the property as outlined above.

2.15.5Income Disregards

A. For applicants and recipients, net adjusted income equals the total of any unearned income plus any amount remaining from earned income after deducting the earned income disregards and any allowable dependent care disregards.

B. This amount must be less than the appropriate cash assistance standard in order for financial eligibility to exist. The disregards are allowed in the order specified below.

1. Exclusion of Earnings of a Dependent Child

a. Disregard all the monthly earned income of each dependent child from the assistance unit's income.

b. Disregard three hundred dollars ($300.00) plus one half (1/2) of the earned income not already disregarded (applied to net income after the disregards described above). This disregard is allowed for each individual who has otherwise been found eligible to receive cash assistance.

2. Dependent Care Disregard

a. Disregard the actual amount of the expense paid in a calendar month, within the limitations specified below, for each dependent child or incapacitated adult living in the home and receiving cash assistance.

b. This disregard may not exceed one hundred seventy-five dollars ($175.00) per month per child age two (2) and older or an incapacitated adult. For a child under the age of two (2), this disregard may not exceed two hundred dollars ($200.00) per month.

c. Payments actually made for dependent care must be verified.

d. Consideration of the dependent care expense is only given when the care is provided by a person not living in the child's or incapacitated adult's household. If the care provider lives in the same building as the dependent child or adult requiring care, verification that separate households are maintained is required.

2.15.6Other Sources of Income

A. Income may come from many sources beyond employment. Unearned income includes other types of income, such as returns from capital investment with respect to which the individual is not himself/herself actively engaged, such as dividends and interest; it also includes benefits such as individual pensions, Retirement, Survivors, and Disability Insurance (RSDI), Unemployment Insurance (UI), Temporary Disability Insurance (TDI), or Veterans' Benefits.

B. The agency representative needs to be aware of and identify other potential sources of income or resources for which the applicant/recipient may qualify.

C. Federal and State Insurance-UI amp; TDI. An applicant or recipient of cash assistance who has worked in the past fifty-two (52) weeks is required to file a claim for either Unemployment Insurance if unemployed but able to work or Temporary Disability Insurance (TDI) if unemployed but unable to work.

D. Retirement, Survivors, and Disability Insurance (RSDI) Income

1. The total amount of benefits received from Retirement, Survivors, and Disability Insurance (RSDI) by a member of the assistance unit is considered as income.

2. When a child receives RSDI, the caretaker relative does not have the option of excluding that child from the cash assistance unit even when such benefits are sufficient to meet the child's needs according to the consolidated standard. Once the child is included in the assistance unit, the RSDI benefits of the child are considered income to the family.

3. Identifying Potential Beneficiaries

a. Retirement Benefits can be paid to:

(1) The insured wage earner or self-employed person who is eligible or can elect to receive actually reduced benefits at age sixty-two (62). Although the Social Security Act (20 C.F.R. § 404.410)makes this provision elective (receipt of benefits age sixty-two (62)), eligibility for cash assistance is dependent upon acceptance of this source of income at age sixty-two (62).

(2) The spouse of a retired or disabled worker who:

(AA) Is age sixty-two (62) or over; or

(BB) Has in her/his care a child under age sixteen (16) or over age sixteen (16) and disabled who is entitled to benefits on the worker's Social Security record.

(3) A spouse is eligible, if the marriage has been in effect for one (1) year and in some instances, less than a year.

(AA) Spouses of defective ceremonial marriages entered into in good faith are also eligible.

(BB) The divorced spouse of a retired or disabled worker if age sixty-two (62) or over and married to the worker for at least ten (10) years.

(CC) The divorced spouse of a fully insured worker who has not yet filed a claim for benefits if both are age sixty-two (62) or over and have been finally divorced for at least two (2) continuous years.

(DD) The dependent, unmarried child of a retired or disabled worker entitled to benefits, if the child is:

(i) Under age eighteen (18); or

(ii) Age eighteen (18) or over but under a disability which began before age twenty-two (22).

(iii) This includes children born of natural parents, adopted children, step-children or children born out of wedlock.

b. Relatives of a deceased insured wage earner or self-employed person who may be eligible to receive monthly benefits include:

(1) The surviving spouse, (including a surviving divorced spouse) if the widow(er) is age sixty (60) or over.

(2) The surviving spouse with a disability, (including a surviving divorced spouse in some cases) if the widow(er) is age fifty (50) to fifty-nine (59) and becomes disabled not later than seven (7) years after the worker's death, or in case of a widow(er), within seven (7) years after s/he stops getting checks as a widow(er) caring for a worker's children.

(3) The surviving spouse, or surviving divorced spouse if caring for an entitled child (under age sixteen (16) or disabled) of the deceased.

(4) The dependent, unmarried child of a deceased insured worker if the child is:

(AA) Under age eighteen (18); or

(BB) Age eighteen (18) or over but under a disability which began before age twenty-two (22).

(CC) The dependent parents of a deceased worker at age sixty-two (62) or over.

E. Disability Benefits

1. A worker who becomes severely disabled before age sixty-five (65) may qualify for disability checks. The disability must be a severe physical or mental condition which prevents employment and is expected to last (or has lasted) for at least twelve (12) months, or is expected to result in death. Benefits may begin as early as the sixth (6th) full month of disability and continue as long as the disability exists. If a person is severely disabled, benefits can be paid even though the person can do some work.

2. Dependent's benefits may be paid to certain members of a disabled worker's family as in the case of a retired worker.

F. Veterans Administration Benefits

1. All applicants and recipients who have been other than dishonorably discharged from any branch of the armed services should apply for VA benefits and/or services. An individual may be eligible as a veteran who served during wartime or specific periods of qualifying peacetime, who is disabled or non-disabled, or has a disability that is service-connected or not.

2. Dependents and survivors of the veteran may also be eligible.

3. Stepchildren, if living with the stepparent, may receive an allowance based on the stepparent's benefits.

4. Potentially eligible individuals may be referred directly to the Veterans Administration Regional Office.

5. An agency form is used to verify benefits for the veteran and/or for the dependent.

G. Worker's Compensation. Under the Workers' Compensation Act, benefits are payable if an employee sustains a personal injury arising out of or in the course of employment or develops an occupational disease. The possibility of this resource should be discussed with the injured client and follow-up made if this is a potential source of income. Based on probable third-party liability, Workers' Compensation benefits are subject to the assignment and reimbursement provisions described in §§ 2.3 and 2.7 of this Part.

H. Insurance Settlement. Money received from an insurance settlement is considered as lump sum income except when the insurance settlement results from a fire, flood, lightning or severe wind, and if it is used to repair or replace the property lost because of the fire, flood, lightning or severe wind. For treatment of lump sum income, see §2.15.6(Q) of this Part.

I. Money or Goods from Other Agencies. When another agency provides money or goods to an applicant or recipient on an irregular basis, it is not considered as income to be applied to the assistance plan.

J. Non-Legally Liable Relative Contribution. Regular and/or substantial contributions by non-legally liable relatives or friends living with or apart from the assistance unit are considered as income in determining need. Gifts and contributions of small value and occurring infrequently for special occasions or as expressions of affection are not related to support and are not considered income provided they do not exceed thirty dollars ($30.00) per recipient in any quarter.

K. Income-In-Kind

1. Regular income in kind for shelter expenses made directly to, for example, the landlord or bank by non-legally liable or legally liable relatives or friends on behalf of a client is considered as income. The table below, by plan size, is used to determine the amount of income to be considered, unless the in-kind shelter payment is less than the amount indicated. In that instance, the actual amount of the payment is considered.

2. This policy does not apply in a situation where a client is living in the home of another, whether or not s/he is paying toward the rent, or where the client is sharing rent with another.

Plan Size	Shelter	Plan Size	Shelter
1	$27.95	6	$115.02
2	$90.89	7	$115.48
3	$105.20	8	$113.55
4	$109.18	9	$109.44
5	$113.07	10 (and over)	$119.11

L. Interest and/or Dividends. When a recipient who is allowed to retain resources, in accordance with §2.14.3 of this Part, receives interest or dividends, the amount received is considered as income.

M. Income from Legally Liable Relatives

1. When an absent parent pays support directly to the applicant, recipient or child, this income must be forwarded to the Office of Child Support Services in accordance with the policy and procedures in §§ 2.10 and 2.15.7 of this Part.

2. Also see § 2.16 of this Part for the treatment of the income of a legally liable relative.

3. For the treatment of the income of a parent of a minor unwed parent, see § 2.16 of this Part.

N. Income of Joint RI Works/SSI Household

1. The income of an SSI recipient (including the SSI benefit) is not considered in determining need and the amount of the cash assistance payment.

2. When an application for cash assistance is made by a family in which a child, a spouse, or a parent (including a stepparent or a relative acting in loco parentis) is receiving an SSI payment, the SSI person is excluded from the count of eligible members constituting the unit.

3. The SSI recipient's own income and resources are not considered, but any other income or resource that belongs to the cash assistance applicant member, including any that was "deemed" to the SSI recipient, is considered.

4. When a cash assistance recipient receives SSI, the agency representative must remove the SSI person from the plan size and remove the SSI recipient's own income (and resources). When a cash assistance member applies for SSI, no change is made in the cash assistance payment until the SSI benefits are granted.

5. Individuals eligible for both cash assistance and SSI have the right to elect which program they wish to receive. There is no authority to mandate placement in one program or the other.

O. When considered for RI Works cash assistance, AmeriCorps and AmeriCorps/VISTA involvement are two (2) separate programs, and the income is treated in different ways.

1. If the income letter or paystub only reports "AmeriCorps," without referencing VISTA in any way, the income is counted for cash assistance.

2. If the income letter or paystub cites "AmeriCorps/VISTA," the income is excluded from consideration for the cash assistance program.

P. Treatment of Lump Sum Income

1. Lump sum income is considered income in the month of receipt, but becomes considered as a resource upon the first (1st) moment of the following month. Lump sum may make a case ineligible due to excess income (using the income-counting rules) in the month of receipt. If this is found to be the case, the DHS worker should consider the case for reinstatement of cash assistance the following month, with the amount received as income then considered as a resource.

2. Countable resources are determined as of the First (1st) Moment of the Month (FOM). The determination is based on the resources the individuals own, their value, and whether or not they are excluded as of the first (1st) moment of the month. The FOM rule establishes a point in time at which to value resources; what a person owns in countable resources can change during a month but the change is always effective with the following month's resource determination. The kinds of changes that can occur are:

a. Changes in Value of Existing Resources. The value of an existing resource may increase or decrease. For example, the value of a share of stock may decrease by thirty dollars ($30.00) or increase by twenty dollars ($20.00).

b. Disposition or Acquisition of Resources. An individual may dispose of an existing resource (e.g., close a savings account and purchase an item) or may acquire a new resource (e.g., an inheritance which is subject to the income-counting rules in the month of receipt).

c. Change in Exclusion Status of Existing Resources. An individual may replace an excluded resource with one that is not excluded (e.g., sell an excluded automobile for non-excluded cash) or vice versa (use non-excluded cash to purchase an excluded automobile). Similarly, a time-limited exclusion may expire.

3. If countable resources exceed the limit as of the first (1st) moment of a month, the recipient is not eligible for that month, unless the resources are reduced by expenditure on certain allowable expenses.

Q. Reduction of Lump Sum Income/Resource

1. An applicant whose countable resources exceed the basic resource limitation may establish eligibility on the basis of resources if:

a. S/he incurs (or has incurred) outstanding allowable household maintenance bills or other allowable expenses that equal or exceed his/her excess resources; and,

b. S/he reduces the excess resources to the appropriate resource limit by actually paying the allowable expenses or fees, and submitting verification thereof within thirty days of the date of the rejection or closing notice. Both the expenditure of the resource and submission of verification of the expenditure and the reduced resource must occur within the thirty-day time period.

2. The bills used to establish eligibility cannot be incurred earlier than the first (1st) day of the third (3rd) month prior to the date of an application that is eventually approved.

3. The agency representative must see the bills that have been actually paid in order to verify that resources have been properly reduced.

4. An individual who reduces resources and is otherwise eligible will be eligible as of the date the incurred allowable expenses equaled or exceeded the amount of his or her excess assets, subject to verification that the excess resource was actually expended on the allowable expense. In no event shall the first (1st) day of eligibility be earlier than the first (1st) day of the month of application.

5. The applicant will be required to verify that:

a. S/he incurred the necessary amount of expenses; and,

b. His or her excess resources were reduced to the allowable resource limit by expenditure of the excess resource on the allowed expense.

2.15.7Child Support Income

A. For purposes of this section, child support is defined as financial support, voluntary or court ordered, paid by an absent parent on behalf of his/her natural or adopted child(ren).

B. Direct Support

1. The applicant or recipient is advised that the assistance payment does not reflect any support money as income except in the initial month of eligibility or when an uncooperative sanctioned recipient retains direct support in violation of the assignment.

2. The amount of support is ultimately established by court order.

3. When an applicant or recipient informs the DHS worker at the time of initial determination of eligibility or at any time during the receipt of assistance that child support is being received by the family on behalf of an applicant child, the agency representative must take the actions described below.

4. Treat Direct Payments as Income

a. Except for the first (1st) fifty dollars ($50.00) in child support received in the application month from each noncustodial parent of a child, the agency representative must consider the support payments as income for determining eligibility. If the family is eligible for assistance, any child support (over and above the amount of the excluded support as outlined in §2.15.3 of this Part) received in the month of application, or until the end of the month in which the payment is authorized, must be budgeted as income.

b. The purpose of treating direct payments as income in this initial determination period is to provide sufficient time for the referral of the case to the Department of Human Services, Office of Child Support Services, before child support payments are directed there. In subsequent months, direct support payments that are covered by the assignment and paid to the Department of Human Services, Office of Child Support Services, as required, are not considered as income in computing the amount of the assistance payment for which the recipient is eligible (see §2.15.7 of this Part concerning the child support pass through).

5. Inform the Applicant/Recipient. In any case in which there is absence of a parent, the RI Works cash assistance applicant/recipient must be informed that support payments received from an absent parent after cash assistance is authorized must be forwarded directly to:

Rhode Island Family Court

One Dorrance Plaza

C/O Bookkeeping Unit

Providence, RI 02903

6. Recipients of direct support must also be advised:

a. Not to send cash through the mail;

b. To enter their case I.D. in the lower left-hand corner of the face of the check or money order and, if the absent parent's name is not on it, to add that as well;

c. To endorse all checks and money orders by writing the words "Payable to the Department of Human Services, Office of Child Support Services," and then signing their name;

d. Not to give support payments to DHS employees to be forwarded to Rhode Island Family Court; and

e. To notify the Department of Human Services, Office of Child Support Services, in writing when there is a lapse in direct support payments.

7. It is especially important to convey the above information when an applicant is receiving direct support payments around the time of application.

8. Applicants/recipients must also be informed that failure to forward direct support payments to Rhode Island Family Court may result in the sanction of the uncooperative recipient in accordance with §2.7.8 of this Part.

C. Support Paid through Family Court

1. When support is paid through the Department of Human Services, Office of Child Support Services (DHS-OCSS), or its agents, a check is issued up to the fifty dollar ($50.00) pass through amount to which the recipient is entitled. Any amount collected during the month which represents payment on the required support obligation for that month, and is in excess of the pass through, shall be retained by the State to reimburse, in whole or in part, the assistance payment for the month in which the support was collected, for unreimbursed assistance for prior months, if child support arrears exist, or for future support. If the monthly amount owed and collected is greater than the assistance payment for the month, DHS authorizes payment to the family an amount equal to the difference between the assistance payment for the month and the court ordered amount for that month. Any such checks issued to recipients in excess of the pass through payments and cash assistance reimbursements must be counted as child support income for RI Works cash assistance purposes.

2. The recipient need not report the receipt of OCSS-issued child support to the DHS local office. However, DHS-OCSS notices advise recipients that the amounts received are being recorded in the eligibility system.

3. When the agency representative learns of the payment of excess of grant monies, s/he reviews the eligibility system which displays both the pass through and child support income paid.

4. The agency representative must reconcile any discrepancies by contacting the recipient, checking the electronic case through the OCSS Interface and, if necessary, contacting DHS-OCSS for clarification.

D. Payment of Child Support Pass Through

1. For any month in which a noncustodial parent makes a child support payment in the month when due and the support is collected by DHS-OCSS for a child or children receiving RI Works cash assistance, the first (1st) fifty dollars ($50.00) of the child support payment, or the actual amount of the child support payment if the payment is less than fifty dollars ($50.00), shall be paid to the family in which the child resides. If more than one (1) noncustodial parent makes a child support payment to children living in the same family, there shall be only one (1) payment of fifty dollars ($50.00) paid to the family from the child support collected. This payment, known as the "pass through" payment, shall be sent to the family within two (2) business days of the determination of the amount that is due and owing and no later than within two (2) business days of the end of the month in which the support was collected.

2. The pass through payment is excluded from income in calculating the family's RI Works cash assistance amount in accordance with §2.15.3 of this Part. However, the fifty dollars ($50.00) pass through is counted as income in the Supplemental Nutrition Assistance Program.

E. Distribution of Child Support of SSI Child

1. When one (1) of the children in a family in receipt of benefits from the RI Works Program receives Supplemental Security Income (SSI), DHS-OCSS shall distribute to the custodial parent all child support collected on behalf of the minor SSI child.

2. Distribution of support must occur within thirty (30) days of receipt by DHS-OCSS according to the requirements outlined below.

a. If the SSI child is the only person covered by the child support order, one hundred percent (100%) of the support collected shall be paid to the custodial parent.

b. If the SSI child is not the only person covered by the child support order, a pro rata portion of the amount collected shall be paid to the custodial parent, unless otherwise specified in the Family Court order. Child support distributed to a custodial parent on behalf of an SSI child is not considered income for purposes of determining cash assistance eligibility or payment level for members of the cash assistance family. However, child support distributed to a custodial parent on behalf of an SSI child is considered unearned income for the Supplemental Nutrition Assistance Program.

3. The Department of Human Services, Office of Child Support Services, must provide to the custodial parent of an SSI child a semi-annual statement which discloses the amount of child support collected and distributed during the preceding two (2) calendar quarters on behalf of the child. The statement includes notification of the custodial parent's right to a hearing with regard to disputes involving the collection and distribution of child support.

2.15.8Student's Income

A. RSDI benefits received by eighteen (18) to nineteen (19) year old recipients due to their in-school status are countable as income in the determination of need and the amount of cash assistance.

B. In addition, the Veterans Administration sponsors several different educational assistance programs. One does not have to be a veteran to qualify for assistance under some of the programs. Anyone receiving VA educational assistance receives an award letter indicating the amount to be received and the period of time for which it will be received.

C. In determining need and amount of assistance, that part of the payment which is intended for the individual dependents who are in the assistance unit is counted as available income. The verified amount from the student's portion that is used for tuition, books, fees, equipment, special clothing needs, and transportation for education-related purposes is not considered as income in the determination of need and amount of the assistance payment.

D. The total amount of the allowable educational expenses is deducted up to the amount of the individual's benefit. Only the balance, if any, is entered as income.

E. Federally or Non-Federally Supported Sources

1. Individuals may receive scholarships, grants and awards from federally supported sources such as the Bureau of Indian Affairs (BIA); State sources; civic, fraternal, and alumni/alumnae organizations; from relatives; or because of verified needs, achievements or a combination of such reasons.

2. That portion of the scholarship, grant or award which is used for tuition, books, fees, equipment or transportation for school purposes is disregarded as income in the determination of need and amount of the assistance payment. (See also §2.12.3(A)(3) of this Part, Excluded Income.)

2.15.9Deemed Income

A. In certain instances, income must be deemed to the members of the assistance unit and counted in the determination of eligibility for and the amount of cash assistance. Deemed income means income that is counted as available and received, even if it is not in fact received by the assistance unit.

B. There are three (3) groups of individuals whose income must be deemed available to the assistance unit. These are:

1. Parent(s) of a minor parent or pregnant minor when s/he is living in the same household:

a. The income of the parent(s) of a minor parent or pregnant minor (under age eighteen (18)) who applies for or receives cash assistance is deemed available to the minor parent's assistance unit when:

(1) The minor parent lives with his/her own parent(s); and

(2) The parent(s) is (are) not receiving assistance themselves.

b. The income of such parents, less appropriate disregards, is counted in the determination of eligibility for and the amount of cash assistance for the minor parent and his/her dependent child(ren). The policy and the method for calculating the amount of deemed parental income are found in § 2.16 of this Part.

2. Sponsors of non-citizens:

a. The income of the sponsor and sponsor's spouse of a non-citizen applying for or receiving cash assistance is deemed available to the assistance unit unless the non-citizen is exempt from the sponsorship deeming provisions.

b. A sponsor is anyone who executed an affidavit of support or similar agreement on behalf of a non-citizen as a condition of the non-citizen's entry into the United States. This provision does not apply to non-citizens who were sponsored by private or public organizations. The policy and the method for calculating deemed non-citizen sponsorship income (and resources) is found in § 2.17 of this Part.

3. Parent(s) of a child(ren) who is (are) ineligible to receive cash assistance themselves.

a. Ineligible Parent of Children

(1) In most cases, the parent of a child is required to be included in the assistance unit, refer to § 2.4 of this Part for a complete discussion of the Assistance Unit rules. In certain instances, a parent cannot be included in the cash payment. This occurs when the parent is either statutorily barred from cash assistance eligibility or disqualified from the cash assistance program. However, all parents, even if not included in the receipt of benefits, are required to cooperate with RI Works work plan and opportunities unless exempted specifically from the work requirements.

(AA) Income of Statutorily Barred Parent

(i) A ninety dollar ($90.00) disregard and any applicable dependent care disregard is applied to the earned income of a statutorily barred parent. In addition, an amount is allocated to meet the parent's own needs. This is done by subtracting the cash assistance standard for a plan size excluding the parent from the cash assistance standard for a plan size including the parent.

(ii) If the ineligible parent has dependents also ineligible solely because they do not meet program requirements but are not sanctioned individuals, an amount is allocated to meet their needs by using the method specified above. The net income of the ineligible parent is then counted as unearned income to determine eligibility for and the amount of cash assistance.

(iii) Examples of a parent statutorily barred from receipt of cash assistance include a parent who is an ineligible non-citizen because of sponsor-to-non-citizen deeming, or because of the receipt of lump sum income.

(BB) Income of Disqualified Parent

(i) When the parent is disqualified from cash assistance and has income of her/his own, this income must be considered available to the assistance unit. In determining the amount of income available to the assistance unit, no amount is allocated to meet the needs of the sanctioned parent. Moreover, no earned income disregards are applied to the earned income of the sanctioned parent.

(ii) Examples of a parent disqualified from receipt of cash assistance include a parent sanctioned because of refusal or failure to cooperate with the Office of Child Support Services.

b. Income of the Spouse of a Loco parentis (L.P.) Caretaker

(1) The income and resources of the spouse of a Loco parentis caretaker applying for or receiving cash assistance is deemed available to the assistance unit. The income of a spouse of an L.P. caretaker includes both his/her earned and unearned income. (However, the income of an SSI spouse is not deemed.)

(2) Prior to the spouse's income being applied to the needs of the L.P. caretaker's assistance unit, certain disregards are allowed. These disregards are verified and applied, as appropriate, in the following order:

(AA) Earned Income. From the spouse's monthly gross earned income, disregard the first (1st) ninety dollars ($90.00).

(BB) Net Earned and Unearned Income. An amount is disregarded for the support of the spouse and any other individuals who are living in the home, but whose needs are not taken into account in the determination for cash assistance or SSI and who are claimed or could be claimed by the spouse as dependents for purposes of determining his/her Federal personal income tax liability.

(CC) The amount disregarded must equal the cash assistance spouse's standard for a plan size of the same composition as the spouse's family group but excluding any person included in the L.P. caretaker's family.

(DD) Amounts actually paid by the spouse to individuals not living in the home but who are claimed or could be claimed by him/her as dependents for purposes of determining Federal personal income tax liability are disregarded.

(EE) Amounts actually paid by the spouse as alimony and/or child support to individuals not living in the household are disregarded.

(FF) The spouse's net income, after the appropriate disregards are allowed, is assumed available to meet the needs of the L.P. caretaker's assistance unit.

(GG) If this income renders the assistance unit ineligible for cash assistance, the L.P. caretaker has the option to apply for cash assistance for the child(ren) in his/her care only, without requesting for him/herself. In this situation, no income or resource from either adult (the L.P. caretaker or the spouse) would count towards the child's or children's eligibility.

218 R.I. Code R. 218-RICR-20-00-2.15

Adopted effective 1/6/2019
Amended effective 2/16/2020
Amended effective 2/27/2022
Amended effective 11/11/2022
Amended effective 8/26/2023
Amended effective 11/4/2023