Determining Reasonably Anticipated Monthly Income

Income is “reasonably anticipated” when the recipient and the EW determines it is reasonably certain that the recipient will receive a specific amount of monthly income in the SAR Payment Period. If the amount of income that will be received or when it will be received is uncertain, the portion of the AU’s household income that is uncertain must not be counted.

Under SAR, recipients will no longer be required to report an exact amount of anticipated monthly income for each month of the SAR period. Instead, recipients will be required to provide information for the Data Month and any anticipated changes in the six months following the Submit Month. The income received in the Data Month is considered reasonably anticipated and will be used in the budget calculations, unless the recipient reports that they anticipate a change in the upcoming SAR Period.

If an AU anticipates new income from a new source in the upcoming SAR Payment Period, such as a new job or UI benefits, this income must be considered reasonably anticipated if it is determined that:

The AU verifies that the income has been or will be approved or authorized within the upcoming SAR period, or the household is otherwise reasonably certain that the income will be received within the SAR period,
The anticipated amount of the income is known and verified, or the AU is otherwise reasonably certain of the amount of the income; and
The start date of the income is known and verified, or the AU is otherwise reasonably certain of the start date of the income.

ExampleExampleA father finds employment as a day laborer and doesn’t know in advance which days he will be working or how much he will be earning. This income can’t be reasonably anticipated for the upcoming SAR Period and should not be prospectively budgeted.

If an AU anticipates new income, but does not have reasonable certainty of the dates and amounts expected to be received, this income cannot be considered reasonably anticipated and therefore cannot be used in determining the benefits for the upcoming SAR Payment Period. If the new income exceeds the IRT mid-period, then the recipient would have to report it and benefits will be recalculated as necessary.

Use the following chart to assist with determining when income is considered reasonably anticipated:

If the client states that the...	Then the EW must...
Monthly income fluctuates or Income received in the Data Month will change in the upcoming SAR period,	Attempt to find out the amount of income the AU reasonably anticipates to receives.
Monthly income fluctuates but agrees to a minimum/average amount,	Use the reported amount of reasonably anticipated income.
Amount can not be anticipated or Payment will not occur until the next SAR period,	Not use the income as it is not considered to be reasonably anticipated.
Income will change or stop,	Not consider the income to be reasonably anticipated.

Reminder: Unless the AU is reasonably certain of the amount and the start date, new income cannot be considered as reasonably anticipated.

Only the portion of income that the AU reasonably anticipates to receive can be used in the benefit calculation.

Example Example If a recipient states that the Data Month income is NOT typical and explains why by providing an estimate of future income, then the recipients estimate of future income must be used as long as there is no conflicting information.

Example Example If a recipient states that their income fluctuates so much that they can not anticipate any income, then income will not be counted. If the EW disagrees that the income is too unpredictable to anticipate, then the circumstances must be explored with the applicant or recipient to determine what amount, if any, can be reasonably anticipated. EWs must document the basis for the amount used in the CalSAWS Maintain Case Comments window.

Applicants/Recipients must be advised that if their actual income is less than the anticipated income, a mid-period voluntary report of the decreased income should be made. Verification must be provided in order to increase the benefit amount mid-period.

Example 1

A client reports that he believes he qualifies for $400 in UIB. There is no finding of eligibility and no statement of when the benefits will start. This income can’t be reasonably anticipated. If however, the recipient provided a copy of the UIB check or a statement that benefits would begin on a certain date, the income could be reasonably anticipated.

Example 2

A client reports being told at an interview that she got the job. She is aware of a salary range, but has no further information. This income cannot be treated as anticipated. If however, the recipient knows her start date, anticipated wage amount and expected hours, then the EW should consider this income to be reasonably anticipated as of the date the income will begin and use this income in the benefit calculation for the next SAR Payment Period. The EW shall document the recipient’s statement of start date, expected hours, and wages in the case file to substantiate the recipient’s estimate.

Example 3

A client is a waitress and doesn’t earn the same amount each month because of extra shift opportunities, shift cut-backs and variances of tips received, but she states on the SAR 7 that the reported Data Month’s income is “typical.” The EW must count that income as reasonably anticipated for the next semi-annual period. If, however, the recipient never has any regular shifts or hours, and the employer or prior income history substantiates that there is no minimum amount of income expected, or the recipient explains changes that have occurred or why the historical minimum income can’t be reasonably anticipated, then this income can’t be reasonably anticipated and will not be used to determine the benefit amount for the upcoming semi-annual period.

Example 4

A client’s income varies between $200 and $400 a month and the employer can’t confirm the earnings or schedule, but the recipient states that earnings are usually at least $200. The EW must list $200 as reasonably anticipated income. If the recipient’s income varies dramatically (for example someone who is waiting for an on-call substitute position, who doesn’t know whether there will be any work or any minimum hours) there is no income that can be reasonably anticipated and no income will be budgeted.

Example 5