Types of Income

Deductions that ARE allowed from gross earned income include, but are not limited to amounts that are INVOLUNTARILY withheld for:

• Federal Income Tax 
• State Income Tax 
• Social Security (FICA)
• Meals
• Involuntary Insurance, e.g., SDI
• Involuntary retirement
• Mandatory union dues, and
• Involuntary work-related expenses.

Deductions NOT allowed from gross earned income include, but are not limited to amounts VOLUNTARILY withheld for:

• Child care
• Contributions
• Garnishments
• Insurance
• Mileage
• Transportation costs
• Union dues.

Tips are to be reported and counted when actually received.

NOTE: The client must attempt to get a statement from the employer that verifies the actual amount of tips received. If the employer cannot, or will not provide this information, the client's sworn statement on a “General Affidavit” (CSF 2) will be accepted.

For purposes of the GA Program, tax refunds are:

• Considered as earned lump sum income in the month received and,
• Any amount remaining after the month of receipt will be counted as personal property. Refer to “Lump Sum Income, for calculation and treatment of lump sum income.]

Foster care payments include:

• Payments made to a foster parent when a foster child is temporarily absent from the foster home for a month or more.
• Payments made to ensure availability of a room for foster children. Refer to Exempt/Excluded Income.

Payments received at regular intervals (usually monthly or quarterly) based upon an initial investment by the beneficiary.

REMINDER: The annuity must be evaluated for a property determination.

These are payments received by:

• The holder of a patent or copyright
• A person for the use of their invention
• The owner of a mine, oil well, or similar holdings, for the extraction of the product or other use.

Cash gifts for special occasions, e.g., birthdays and Christmas, up to $25 will not be considered as income. 

NOTE: Cash gifts on a regular planned basis or other than special occasions must be considered as income.

Any item of need not identified in the income-in-kind section contributed by friends, relatives or others is exempt, providing the cash does not pass through the applicant/recipients hands.

Refer to Income-In-Kind. 

Note: If cash is given directly to the applicant/recipient, it is considered income.

The GI/GBI/UBI program must have been granted a CalFresh waiver from the California Department of Social Services.

Note: EWs can check the GI Tracking List to see if the GI Program is already known and whether or not the payments will be exempt. If the GI Program is not on the tracking list, the EW can provide the SCD 2620 to the client for the GI Program to complete.

EXCEPTION:

• Payments made to a foster parent when a foster child is temporarily absent from the foster home for a month or more, or
• Payments made to ensure availability of a room for foster child(ren).

Note: In the above situations, these payments are considered earnings.

This program is administered by Catholic Charities and is exempt from consideration as income.

Note: This program is NOT a Foster Care Program that is administered by the Social Services Agency.

Benefits received because of displacement from an owned or rented home will be exempt for a period of 90 calendar days from the date of receipt. These funds must have been received from a Redevelopment Agency, or from a private developer. 

Generally, these payments are issued due to the following:

• Redevelopment
• Urban renewal
• Freeway construction
• Any other public development involving demolition or condemnation of existing housing.

This exemption will begin on the date that the benefits are received. If after 90 calendar days, the recipient has not relocated, or retains a portion of the relocation benefits in excess of personal property limits; aid will be discontinued with a timely notice at the end of the month in which the 90th day occurs.

When it is verified that the following conditions are met:

• A written agreement signed by the lender and the borrower is provided and,
• The agreement clearly specifies:
  • The obligation of the applicant/recipient to repay the loan, and
  • A repayment plan: When the repayment will start, frequency and amount of payments.