F. Income/Benefits Excluded or Exempt From Consideration as Income


State regulation requires certain types of payments or benefits be excluded or exempted in whole or in part from consideration as income.

Earned Income of a Child

The term child includes a parent who is a child in his/her parentís case. (This does not apply to a minor parent who is an adult in his or her own case.)

The following types of income of a child are excluded or exempt from consideration:


       Independent living program (ILP)

Income and incentive payments earned by a child 16 years of age or older who is participating in the ILP are exempt as income for both eligibility and grant determination when received as part of the ILP written transitional independent living plan. There is no limit to the amount exempted.


       Workforce Investment Act (WIA)

Earnings of a child which are derived from participation in WIA programs are disregarded from consideration as income for both eligibility and grant determination for up to six months per calendar year.


       Student Exemption

Earned income (including WIA) of a child under 19 is exempt if he/she is a full time student or he/she has a school schedule that is equal to at least one-half of a full time curriculum and is not employed full time.


School attendance is defined as attendance in a school, college, university, or in a course of vocational or technical training designed to prepare the child for gainful employment and includesparticipation in Job Corps program under the Economic Opportunity Act.

Part time employment is defined as less than 173 hours per month.

The allowed income exemption is applied during the school term, between terms, or during vacations if the child plans to return to school following the vacation period.




All loans that meet the following conditions are to be excluded as income when verification is provided.


A written agreement signed and dated by the lender and applicant/recipient as parties to the agreement that clearly specifies:

1)     the obligation of the applicant/recipient to repay the loan; and

2)     a repayment plan which provides for installments of specified amounts that continue on a regular basis until the loan is fully repaid.

Student Loans and grants

The following loans and grants are not considered income:


           Loans made under Title III of the Federal Economic Act (Special program to combat poverty in rural areas);

           Loans and grants received under the Carl D. Perkins Vocational and Applied Technology Education Act are excluded only to the extent that the proceeds are used to meet attendance costs for a student attending school on at least a half-time basis, as defined by the institution.

           Any other grant to any undergraduate student for educational purposes made or insured under any program administered by the Federal Secretary of Education.

           Any other loans or grants to undergraduate students when they are awarded on the basis of the studentís need.Certification from the official at the studentís school is required.The certification must state that the award is based on need and that the CalWORKs grant was considered in making the award;

           Other educational loans and grants to undergraduate students used to meet educational expenses such as fees, equipment, special clothing needs, transportation etc.

Loans and grants made under Title IV of the Higher Education Act

Loans and grants made under Title IV of the Higher Education Act or under the Bureau of Indian Affairs student assistance program are not considered income. Examples of Title IV and Bureau of Indian Affairs loans and grants include:


           Supplemental Educational Opportunity Grant Program;

           Carl D. Perkins Loans (NOTE: Differs from the student financial assistance provided under the Carl D. Perkins Vocational Act);

           Robert C. Byrd Honors Scholarship Program;

           National Science Scholarship Program;

           State Student Incentive Grants: Cal Grant Program;

           Paul Douglas Teacher Scholarship Program;

           College Work Study;

           Income Contingent Loan (ICL) Program;

           Bureau of Indian Affairs Higher Education Grant;

           Indian Health Services Scholarship Program;

           Pell Grant;

           Federal Family Education Loan (FFEL);

           Program: Guaranteed Student Loan (GSL) program;

           Stafford Loan Program;

           Consolidation Loan Program;

           Supplemental Loans for Students (SLS) Program; and

           Parent Loans for Students (PLUS) Program.



College Work Study

Earned income from any college work study program including both Work Study under Title IV of the Higher Education Act and CalWORKs Work Study. (The CalWORKs Work Study is a program created by community colleges for CalWORKs recipients using CalWORKs funds colleges receive. This program may also be called Work Experience or CalWORKs @ Work 75/25 in some other counties).

Extra-curricular awards or scholarships

Any awards or scholarships provided by public or private entity based on the childís academic or extracurricular achievement or participation in a scholastic, educational, or extracurricular competition.


Child/Spousal Support Disregard

The first $50 in current child/spousal support received or reasonably anticipated to be received by an AU or collected on behalf of an AU is disregarded as income. This disregard does not apply to payments received for back support (arrearages). The $50 disregard applies to each current month support payment paid without regard to the month in which the payment is received.

Child Care Payment to the provider

Child Care payments paid directly to the provider by the CalWORKs Child Care Payment System on behalf of CalWORKs recipients are exempt as income.