Policy History for  4.1.2  Disregarded Income

Release 07-06

4.1.2  Disregarded Income

“Disregard” means “do not count.”  When you are calculating the total amount of income Income is anything you receive in cash or in kind that you can use to meet your needs for food, clothing, and shelter. a person has received, disregard, that is, do not count, the following kinds of income:

4.1.2.1 Payments to Native Americans

Disregard the following payments to Native Americans:

1. Menominee Indian Bond interest payments.
    

2. All judgment payments to tribes through the Indian  Claims Commission or Court of Claims.
    

3. Payments under the Alaskan Native Claims Settlement Act.
    

4. Payments under the Maine Indian Claims Settlement Fund.
    

5. Payments under PL 93-124 to the Sisseton-Wahpeton  Sioux Tribe, except individual shares over $2,000.
    

6. Payments under PL 93-134 to the Maricopa Ak-Chin Indian Community, Navajo Tribe, Coast Indian Community of the Resighini Rancheria, Stillaguamish Tribe, Pueblo of Taos Tribe, Walker River Paiute Tribe, and White Earth Band of the Minnesota Chippewa Tribe, except individual shares over $2,000.
    

7. Payments under PL 94-114 to the Bad River Band and Lac Courte Oreilles Band of Chippewa Indians and the  Stockbridge Munsee Indian Community of Mohicans.
    

8. Payments under PL 96-318 to the Delaware Tribe of Kansas and of Idaho.
    

9. Payments under PL 96-420 to the Houlton Band of Muliseet  Indians, the Passamoquoddy, and Penobscot.
    

10. For EBD MA cases, under PL 98-64, disregard all Indian judgment funds held in trust by the Secretary of the Interior for an Indian tribe and distributed on an individual basis to members of the tribe.  Also disregard interest and investment income from these funds.
     

11. Payments under PL 99-346, Saginaw Chippewa Indian T  Tribe of Michigan.
     

12. Payments under PL 99-377 to the Mille Lacs, Leech Lake, and White Earth, MN, reservations.
     

13. Payments under PL 101-41, Puyallup Tribe of Indians Settlement Act of 1989.
     

14. Payments under the Distribution of Judgment Funds Act of 1987 to the Cow Creek Band, Umpqua Tribe.
     

15. Payments under the Distribution of Indian Judgment to the Crow Creek and Lower Brule Sioux except individual shares over $2,000.

4.1.2.2 Special Programs

Disregard income from all of the following:

1. Active Corp. of Executives ( ACE ).

2. Earnings of a census enumerator.

3. Emergency Fuel Assistance.

4. Foster Grandparents Program.

5. Governmental rent or housing subsidy, including reimbursements due to federal regulatory changes in computing HUD housing rent.

6. Homestead Tax Credit.

7. Low Income Energy Assistance Program.

8. Programs funded under Title V of the Older Americans Act of 1965 (4.1.5.14), except wages or salaries, which are counted as earned income.  

9. Retired Senior Volunteer Program ( RSVP ).

10. Service Corp. of Retired Executives ( SCORE ).

11. University Year for Action Program ( UYA ).

12. Volunteers in Service to America ( VISTA ).

13. Wisconsin's Family Support Program (s. 46.985, WI Stats.)  This program funds the unique needs of severely disabled children.  They may be a vendor or a money payment.

4.1.2.3 Nutrition Benefits

Disregard benefits received from the following:

1. Emergency Food and Shelter National Board.

2. Federal Emergency Management Assistance  ( FEMA ).

3. FoodShare coupon allotment.

4. Home produce for household consumption.

5. National School Lunch Act.

6. Supplemental food assistance under the Child Nutrition Act of 1966.

7. Title VII Nutrition Program for the Elderly, Older Americans Act of 1965.

8. USDA Child Care Food Program.

9. USDA donated food and other emergency food.

10. WIC - the supplemental food program for women, infants, and children.

4.1.2.4 Disaster and Emergency Assistance

Disregard major disaster and emergency assistance payments made by federal, state, county, and local agencies, and other disaster assistance organizations.

4.1.2.5 IDA Payments

Disregard IDA (Individual Development Account) payments that are made in the form of matching funds to buy a home, start a business , or to complete post-secondary education.

4.1.2.6 Travel Tickets

In EBD MA cases, disregard the value of any commercial transportation ticket which the client, his/her spouse or parents (if the client is a minor) receives as a gift if it is:
 

1. For travel among the 50 states, District of Columbia, American Samoa, Guam, Northern Mariana Island, Puerto Rico, and the Virgin Islands.

2. Not converted to cash.

4.1.2.7 Repayments

A repayment is money the client has received from an income maintenance program and must give back because of a program error or violation.  Since s/he is not entitled to the money, s/he must repay it.  Therefore it should not be counted as income to the client.

Disregard the following repayments:
 

1. Money withheld from an economic assistance check due to a prior overpayment.
    

2. Money from a particular income source that is voluntarily or involuntarily paid to repay a prior overpayment received from that same source of income.
    

If money from a particular income source is mixed with money from other types of income, disregard only an amount up to the amount of the current payment from the particular source.

3. Social Security income used to repay an overpayment previously received from the Social Security Administration, whether SSA or SSI.

4.1.2.8 Reimbursements

A reimbursement is a payment which a person receives for out-of-pocket expenses.  Disregard reimbursements for expenses an assistance group member has incurred or paid. Except, do not disregard reimbursements for normal household living expenses (rent, clothing, or food eaten at home).

Here are some examples of reimbursements you should disregard:

1. For job or training related expenses.  The expenses may be for travel, food, uniforms, and transportation to and from the job or training site.  This includes travel expenses of migrant workers.
    

2. For volunteers' out-of-pocket expenses incurred during their work.
    

3. Medical or dependent care reimbursements.
    

4. Reimbursement from the Indianhead Community Action Agency (Ladysmith) under its JUMP Start Program for start-up costs to set up an in-home child care business in the person's home.
    

5. Reimbursements received from the Social Services Block Grant Program for expenses in purchasing Social Services Block Grant services, for example, transportation, chore services, and child care services.
    

The reimbursement payment should not be more than the person’s actual out-of-pocket expenses.  If it is more, count the excess amount as unearned income.

4.1.2.9 Relocation Payments

Under s. 32.19, Wis. Stats., relocation payments are available to displaced persons.  The following are examples of costs which the relocation payments are intended to cover: moving expenses, replacement housing and property transfer expenses. Disregard the amounts paid by any governmental agency or organization listed in s. 32.02, Wis. Stats.  Disregard Title II, Uniform Relocation Assistance and Real Property Acquisition Policies Act payments.  Its purpose is to treat persons displaced by federal and federally aided  programs fairly so that they do not suffer disproportionate injuries as a result of programs designed for the public's benefit.

Disregard Experimental Housing Allowance Program ( EHAP ) payments.  Its purpose is to study housing supply.  Test areas, which include Brown County, were selected throughout the United States, and contracts were entered into prior to January 1, 1975.  A sample of families was selected to receive monthly housing allowance payments.

For EBD MA clients, disregard housing assistance payments received under the following Acts:

1. United States Housing Act of 1937.

2. The National Housing Act.

3. Section 101 of the Housing and Urban Development Act of 1965.

4. Title V of the Housing Act of 1949.

5. Section 202(h) of the Housing Act of 1959.

4.1.2.10 Agent Orange Settlement Fund

Disregard payments received from the Agent Orange Settlement Fund or any other fund established in settling "In Re: Agent Orange product liability Settlement Fund litigation, M.D.L. No. 381 ( E.D.N.Y. )".

Apply this disregard retroactively to January 1, 1989 and continue to disregard these payments for as long as they are identified separately.

4.1.2.11 Radiation Exposure Compensation Act

Disregard payments from any program under the Radiation Exposure Act (PL 101-426) paid to persons to compensate injury or death due to exposure to radiation from nuclear testing ($50,000) and uranium mining ($100,000).  The federal Department of Justice reviews the claims and makes the payments.  If the affected person is dead, payments are made to his/her surviving spouse, children, parents, or grandparents.

Apply this disregard retroactively to October 15, 1990 and continue to disregard these payments for as long as they are identified separately.

4.1.2.12 Payments to Nazi Victims

Disregard payments made under PL 103-286 to victims of Nazi persecution.

4.1.2.13 Mixed Family

When a family consists of AFDC recipients and non-recipients, include the AFDC recipients in the fiscal test group but disregard the AFDC grant in the income test.

4.1.2.14 Dottie Moore Payments

Disregard any penalty payment paid as a result of the Dottie Moore lawsuit.

These court-ordered $50-$200 penalty payments can be imposed when the IM Agency or Child Support Agency ( CSA ) does not correctly process child support refunds.

4.1.2.15 Zebley Payments

Disregard all SSI payments received by anyone as a result of the Zebley vs. Sullivan decision.  Do not count it as income or a lump sum in the month received.  Do not count it as an asset even if the family keeps the money and does not spend it.

4.1.2.16 Life Insurance

Disregard life insurance policy dividends.

4.1.2.17 Inconsequential

Disregard income which is unpredictable, irregular, and has no appreciable effect on ongoing need.

4.1.2.18 Foster Care

Disregard foster care payments.

4.1.2.19 Adoption Assistance

Disregard adoption assistance payments.

4.1.2.20 Wartime Relocation of Citizens

Disregard restitution payments under PL 100-383 to individual Japanese-Americans (or their survivors) and Aleuts who were interned or relocated during WW II.

4.1.2.21 Child Support and Maintenance

In Family MA cases (but not in EBD MA cases), disregard the first $50 of current child support paid by the absent parent(s), if it is:

Court ordered (assigned or unassigned) and paid to either:

1. The clerk of courts, or

2. Directly to or on behalf of an MA group.

If payments are made by two or more absent parents, disregard only the first $50.  The disregard may not exceed $50 for each month in which child support and/or maintenance is collected or received.

4.1.2.22 Susan Walker Payments

Disregard payments received from the class action settlement of Susan Walker vs. Bayer Corporation.  These payments are to hemophiliacs who contracted the HIV virus from contaminated blood products.

4.1.2.23 Spina Bifida Child

Disregard payments made under PL 104-204 to any child of a Vietnam veteran for any disability resulting from the child's spina bifida.

4.1.2.24 Kinship Care

Disregard kinship care payments.

4.1.2.25 W2 Payments

Disregard Wisconsin Works ( W2 ) payments for Transitional Jobs and Community Service Jobs.  Do not disregard payments for Trial Jobs.

4.1.2.26 Migrant Workers

Annualize migrant workers income.  See 5.11.8.2.

4.1.2.27 VA Allowances

Disregard VA allowances for unusual medical expenses that are received by a veteran, their surviving spouse, or dependent.  Disregard aid and attendance and housebound allowances received by veterans, spouses of disabled veterans and surviving spouses.  For institutionalized and community waiver cases, disregard these allowances in eligibility and post-eligibility determinations, except for residents of the State Veterans Home at King.

For King residents the entire payment is exempt when determining eligibility, but only $90 is exempt in the post eligibility test.  It applies only to those who meet the following conditions:
 

1. S/he is a resident at the State Veterans Home at King,

and
 

2. S/he receives aid and attendance, unusual medical expense or housebound allowance payments in an amount greater than $90, and
    

3. S/he is a veteran who has no spouse or child or is a childless surviving spouse of a veteran.

4.1.2.28 Crime Victim Restitution Program

Disregard any payments received from a state established fund to aid victims of a crime.  

4.1.2.29  EBD General Income Disregard

Disregard $20 from the EBD fiscal test group's net income.

4.1.2.30  Refugee "Reception and Placement" (R&P) payments

Disregard federally funded "Reception and Placement" (R &P) payments made to refugees during the first 30 days after their arrival in the U.S.  R& P payments are made by voluntary resettlement agencies and may be a direct payment to the refugee individual/family or to a vendor.

4.1.2.31 Refugee Cash Assistance (RCA)

Disregard cash payments from the Refugee Cash Assistance (RCA) program.  RCA is administered by Wisconsin Works agencies and is made available for refugees who do not qualify for Wisconsin Works.

4.1.2.32  Combat Pay

Disregard combat zone pay that goes to the household that is in excess of the military person's pre-deployment pay.  The exclusion lasts while the military person is deployed to the combat area.

If the amount of military pay from the deployed absent family member is equal to or less than the amount the household was receiving prior to deployment,  count all of the income to the household.  Any portion of the military pay that exceeds the amount the household was receiving prior to deployment to a designated combat zone should be excluded when determining the household’s income.

This page last updated in Release Number : 06-04

Release Date: 10/23/06

Effective Date: 10/23/06