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Net Income from the UAM
[EAS 44-113.5]
The net income to the CalWORKs AU from the UAM is the total of:
- Cash given to the AU which is available to meet the needs of the AU and;
- The value of FULL items of need provided in-kind to the AU, unless the AU is receiving this full item of need in exchange for the AU providing the UAM with a different item of need.
Cash given to the AU is not considered income when:
- The cash has conditions placed on its use for non-need items for the AU, the unrelated adult, or any other person.
- The cash has been designated to meet the needs and expenses of the UAM, including work related expenses, i.e., business expenses, child care, and/or the needs and expenses of the unrelated adult's child(ren) or other unaided persons in the home the UAM is supporting.
- The cash equals the UAM’s share of the cost of living arrangement.
- The UAM has designated the income as not available to the AU.
Pooled Income
When the UAM’s income is pooled with that of the AU, the pooled income is treated as if cash were given to the AU.
Income in-Kind
The value of full items of need provided to the AU is determined according to the income in-kind rules. Refer to Income in Kind.
Miscellaneous
CalFresh and CalWORKs do not treat the UAM in the same manner. [Refer to CalFresh Handbook, URAM]
Budgeting Examples
The examples given below are not all inclusive, but are intended as a reference. The EW must document all pertinent information in the case record and resolve any discrepancies. The EW must continue to look for possible misuse of CalWORKs funds.
Example 1
It is determined that the UAM and CalWORKs mother have agreed that his contribution of $386 is for his share of the rent, utilities, and food. In this situation, there is no income to the AU.
Computation follows:
$386 UAM contribution
– 386 UAM’s designated share of H/H expense
$ 0 Income to AU
Example 2
It is determined that the UAM and CalWORKs mother have agreed that $386 of his total $400 contribution is for his share of the rent, utilities, and food. In this situation, there is income to the AU.
Computation follows:
$400 UAM contribution
– 386 UAM’s designated share of H/H expense
$ 14 Income to AU (Unearned)
Example 3
It is determined that the UAM has specifically designated his $486 contribution be used as follows: (1) $386 is for his needs (e.g., rent, food); (2) $100 is for his car payment for which the CalWORKs mother makes out a check or money order for him. In this situation, there is no income to the AU, provided it can be verified that the money given to the CalWORKs mother by the UAM was for the UAM's expenses and not available for use by the AU.
Computation follows:
$486 UAM contribution
– 386 Designated for his needs
– 100 Designated for his expenses
$ 0 Income to AU
Example 4
It is determined that the UAM has a separate child who is not in the AU. The UAM has designated that of his $375 contribution (1) $200 is for his needs; (2) $175 is for the needs of his child. In this situation, there is no income to the AU.
Computation follows:
$375 UAM contribution
– 200 Designated for his needs
– 175 Designated for his child's needs
$ 0 Income to AU
Example 5
It is determined that the UAM pays directly to the landlord $600 of the $785 total rent as his contribution. There is no income to the AU as the UAM is providing a partial item of need.
Note: Rent is used only as an example; it could be any need item (i.e., rent, utilities, food and clothing).
Example 6
It is determined that the UAM pays the entire $975 rent directly to the landlord. In this situation, the income to the AU is the lesser of the income in kind table amount for the number of people in the AU, the prorated share of the net market value or the actual cost of the item. For this example, assume the household consists of the UAM, the CalWORKs mother, and her two aided children.
Computation follows:
- Determine AU's prorated share of the rent
- $975 (rent) X 75% = $731 (AU's prorated share)
- Determine in kind value of housing for AU size per chart-
- AU (3) = $321 (effective 1/1/07)
- Income to the AU is the lesser of $731 and $321
- Income is $321 (Unearned).
Example 7
It is determined that the UAM and CalWORKs mother have no specified arrangement for the use of his $500 contribution and he has not designated any portion for his needs. In this situation, the income to the AU is the total amount contributed.
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