Pennsylvania Code › Title 55 - HUMAN SERVICES › Part V - Children, Youth and Families Manual › Subpart B - Eligibility for Services › Chapter 3042 - SUBSIDIZED CHILD CARE ELIGIBILITY › OVERPAYMENT AND DISQUALIFICATION › Appendix A - Income to be Included, Deducted and Excluded in Determining Gross Monthly Income

Current through Register Vol. 54, No. 28, July 13, 2024
PART I. Income inclusions
Income from the following sources is included when
						determining total gross monthly income:
A. Money, wages or salary earned by a parent or caretaker
						before deductions for taxes, Social Security, savings bonds, pensions, union
						dues, health insurance and similar purposes, for work performed as an employee.
						This includes commissions, tips, piece-rate payments and cash bonuses. Income
						earned by an unemancipated minor is not included.
B. Armed forces pay, which includes base pay plus cash,
						but does not include housing subsistence, allowances or the value of rent-free
						quarters.
C. Voluntary and court-ordered support received for any
						person in the family.
D. Net income from nonresident and real property, defined
						as gross receipts minus the expenses for continuing the income, such as
						depreciation charges, business taxes (not personal income taxes), interest on
						mortgages, repairs and similar expenses.
E. Social Security benefits. Supplemental Security
						Income, survivors' benefits and permanent disability insurance payments made by
						the Social Security Administration before deductions of health insurance
						premiums.
F. Railroad retirement, disability or survivors' benefit
						payments made by the United States Government under the Railroad Retirement Act
						of 1974 (45 U.S.C.
						§§
												231-
						231v) before deductions of health
						insurance premiums.
G. State blind pension payments made by the
						Department.
H. Public assistance benefits or retirement
						benefits.
I. Private pensions and annuities, including retirement
						benefits paid to a retired person or their survivors by a former employer or a
						union, either directly or through an insurance company.
J. Government employee pensions paid by Federal, State,
						county or other governmental agencies to former employees, including members of
						the armed forces, or their survivors.
K. Unemployment compensation received from government
						unemployment insurance agencies or private companies during periods of
						unemployment and strike benefits received from union funds.
L. Workers' compensation received from private or public
						insurance companies.
M. Veterans' payments, defined as money paid periodically
						by the Veterans Administration to disabled members of the armed forces or to
						the survivors or dependents of deceased or disabled veterans, subsistence
						allowances paid to the survivors of deceased veterans and subsistence
						allowances paid to veterans for education and on-the-job training, as well as
						so-called "refunds" paid to ex-service persons as GI insurance premiums. For a
						disabled veteran in the Vocational Rehabilitation Program, the subsistence
						allowance and the veteran's disability allowance are counted as income.
N. Capital gains, profit from S-corporations and
						dividends, including dividends from stocks, bonds, mutual funds or from
						membership in an association.
O. Interest on savings and bonds.
P. Income from estates and trust funds.
Q. Net income from royalties.
R. Lump sum cash of more than $100; inheritances, life
						insurance benefits; personal injury and other damage awards and settlements;
						retroactive benefits such as retirement, survivor's or disability insurance and
						delayed unemployment: divorce settlements; gifts; or workers'
						compensation.
S. Lump-sum cash lottery winnings or cash prizes of more
						than $100.
T. Profit from self-employment, calculated as total gross
						receipts minus costs of doing business. The costs of doing business shall only
						include the following:
(1) Costs of maintaining a place of business, such as
						rent, utilities, insurance on the business and its property, and property
						taxes. If a business is operated in a home, the costs of maintaining a place of
						business are only those costs identified for the part of the home used
						exclusively for the business.
(2) Interest on the purchase of income-producing
						equipment and property.
(3) Employee labor costs, such as wage, salaries, taxes,
						benefits, unemployment compensation or workers' compensation.
(4) Cost of goods sold, supplies and materials.
(5) Advertising costs.
(6) Accounting and legal fees.
(7) Transportation costs necessary to produce
						income.
U. Net income from room rent or room and board,
						calculated as follows: Gross income received minus $10 per month for each room
						rented. Divide the remainder by 2. That number is the income inclusion.
Conversion Table
Convert weekly, biweekly, semimonthly and other pay
						periods to gross monthly amounts using the following conversion table:
Frequency of income
Conversion method
Daily
Multiply the daily income by the number of workdays m
								a week, then multiply by 4.3.
Weekly
Multiply by 4.3.
Biweekly (every 2 weeks)
Divide by 2, then multiply by 4.3.
Semimonthly (twice per month)
Multiply by 2 for monthly gross income.
Monthly
Use the figure given.
Quarterly
Divide by 3.
Annually
Divide by 12.
Lump sum income
Divide by 12.
PART II. Income deductions
The following are deducted when determining adjusted
						monthly income:
A. Voluntary or court-ordered support paid by the parent
						or caretaker or a family member to a present or former spouse not residing in
						the same household.
B. Voluntary or court-ordered child support paid by the
						parent or caretaker or family member to a person not residing in the same
						household.
C. A medical expense not reimbursed through medical
						insurance that exceeds 10% of the family gross monthly income. The medical
						expense must have been incurred within the 90-day period prior to the date the
						parent or caretaker notifies the eligibility agency of that expense and there
						must be an expectation that the expense will continue to be incurred for the 6
						months following the outset of the expense. Medical expenses are based on the
						monthly expenses or monthly payment plan, or both. Medical expenses include
						bills for doctors, hospital costs, dental services, health care premiums,
						institutional care, medications, prosthetic devices, durable medical equipment
						or mental health services.
D. The stepparent deduction as shown in Appendix C
						(relating to stepparent deduction chart).
PART III. Income exclusions
Income from the following sources is excluded in
						determining gross monthly income:
A. Employment earnings of an individual who is an
						unemancipated minor.
B. Tax refunds, including earned income tax
						credits.
C. Withdrawals of bank, credit union or brokerage
						deposits.
D. Money borrowed.
E. Nonrecurring money in amounts under $100 per person
						per year, given as a gift, from any source.
F. The value of benefits under the Food Stamp Act of 1977
						(7 U.S.C. §§
												2011-2036d).
G. The value of foods donated from the United States
						Department of Agriculture.
H. The value of supplemental foods assistance under the
						Child Nutrition Act of 1966 (42 U.S.C. §§
												1771-
						1793) and the special food service
						programs for children under that act.
I. Loans and grants, such as scholarships, obtained and
						used for conditions that preclude their use for living costs.
J. A grant or loan to an undergraduate student for
						educational purposes, made or insured under any program administered under the
						Higher Education Act of 1965 (20 U.S.C. §§
												1001-1161aa-1).
K. A payment received under the Uniform Relocation
						Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. §§
												4601-4655).
L. A home produce used for household consumption.
M. A payment made on behalf of an individual for
						household expenses, such as rent, food and utilities.
N. Payments to Volunteers in Service to America under the
						Domestic Volunteer Service Act of 1973 (42 U.S.C. §§
												4950-5085),
						which include AmeriCorps income.
O. Earnings received by any youth under the Workforce
						Investment Act of 1998, as amended (Pub.L. No. 105-220) or the
						Youth Build Program (29
						U.S.C. §
												3226).
P. Foster care payments by a foster care placement
						agency, including payments to permanent legal custodians.
Q. Stipends derived from the Foster Grandparent Program
						under section 211 of the Domestic Violence Service Act of 1973 (42 U.S.C. §
												5011).
R. Low Income Home Energy Assistance Program (LIHEAP)
						benefits and cash in-kind energy assistance provided by private agencies and
						utility companies.
S. Adoption assistance payments by a county children and
						youth agency.
T. Income received from Federal student aid or
						participation in a Federal work-study program.
U. Payments made by the Veterans Administration to
						children of Vietnam veterans under The Benefits for Children of Vietnam
						Veterans Act (38 U.S.C.
						§§
												1802-
						1838).