L. Income In-kind

 

Regulation
 

State regulation requires in-kind income to be evaluated when an item of need for the assistance unit (AU) is earned or is voluntarily contributed by a person or an organization.

 

Definitions

·       In-Kind Income - any benefit received other than in cash for an item of need.

·       Item of Need - shelter, utilities, food, and/or clothing.

·       Private, Non-profit Organization - religious, charitable, educational, or other organizations as defined in Section 501(c) of the Internal Revenue Code.  (Actual tax exempt certification from the IRS is not necessary.)

        

Evaluation

In-kind income is to be evaluated when an item of need for the AU is earned or is voluntarily contributed by a person or an organization. Non-need items provided to or earned by the AU are not considered in-kind income and in-kind income cannot be assumed solely because the applicant/recipient does not pay toward a need item.

 

·       Private, Non-profit Organization - Any in-kind income, whether a full or partial item of need, provided by a private, non-profit organization is considered exempt as income.

Note: A determination regarding the status of private organizations can be made by contacting the organization. All such contacts must be documented in the case record.

·       Full Items of need – When an AU receives full item of need for a full calendar month from a source other than a non-profit organization, in-kind income must be considered.

·       Partial Item of Need – In-kind income for partial items of need is exempt. A partial item of need is a need item provided for less than a calendar month or a need item that is only provided in part. 

 

NOTE: A full need item provided to only part of the AU is not considered a partial item of need.

 

Examples of In-kind Evaluation

In-kind income values are neither assigned to nor deemed from persons outside of the AU (i.e., excluded parent, stepparent, or senior parent). When a member of the AU earns a full item of need, the appropriate income disregards are allowed.

 

EXAMPLES:

 

1) Recipient lives with friends who live in military housing.  Recipient pays $100 to the friend each month until a separate residence can be located. 

In-kind income?  No.

 

2) Same situation, but the friend freely provides housing and utilities.

In-kind income?  Yes.

 

3) A pregnant mother (not a minor parent) lives with her parents. The parents will freely provide for her needs.

In-kind income?  Yes.

 

4) Parent maintains apartment house in exchange for housing.

In-kind income?  Yes.  Earned in-kind, allow appropriate deductions.

 

5) CalWORKs parent resides with her three children, the unaided spouse of the mother, and the spouse’s unaided child.  There are no common children.  The entire family lives in housing provided by a relative.

In-kind income?  In-kind income would be counted for the four members of the AU who have their full housing needs provided.  In-kind is not deemed from family members not in the AU.

 

6) An AU has a monthly rent expense of $300.  They have not been able to make this payment in the last two calendar months.

In-kind income?  No.  In-kind income cannot be assumed because the AU does not pay toward a need payment.

 

 

Value of Need Item

The “CalWORKs In-Kind Income Value Table” found in the “Aid Payment” chapter is to be used to determine the value of need items received in-kind.

 

Applicants/Recipients who have in-kind income deducted from the grant must be advised of the right to submit evidence of the value of the need items received, if they do not agree with the use of the in-kind values.

 

For in-kind housing and clothing, the value used is the lesser of the table value or the net market value of the item received. For in-kind utilities and food, the value used is the lesser of the table value or the actual cost to the person who paid for the item. Acceptable evidence to document the net market value of in-kind items include, but not limited to:

 

Item

Acceptable evidence

Housing

rent receipt, mortgage payment book, or canceled check for rent or house payment

Clothing

sworn statement completed by the provider, specifying the dollar value

Utilities

utility bills or canceled checks

Food

sworn statement completed by the provider, specifying the dollar value

 

When a need item is shared with the persons who are not members of the AU or whose needs are not considered in the AU, the in-kind value attribute to the AU is the lesser o the:

 

·        AU’s pro rata share of the net market value; or

·        cost of the item; or

·        in-kind income table value for members of the AU.

 

 

Special Situations

Free Board and Lodging During Temporary Absence from Home

 

In-kind income is to be considered only to the extent that a temporary absence creates an additional need for the family.  When the need at home remains the same there is no in-kind income.

 

When the absence from home is more than one month in-kind income is to be evaluated when a member of the AU is absent and the absence creates an additional need for the family.

 

The value of free board and lodging received by a member of the AU during a temporary absence of not more than one month is considered exempt.

 

Military Housing

 

When a member of the AU is in the military and the family lives in housing provided by the military and the Basic Allowance for Quarters (BEQ or BOQ) is not listed as income on the Leave and Earnings Statement (LES), in-kind housing would be counted for the members of the AU.

 

Disaster Relief Payments

 

Disaster Relief payments provided by the Federal Emergency Management Agency (FEMA) and by the Individual and Family Grant Program (IFGP) are not counted as income.  When the payment is in the form of a full item of need provided in-kind, in-kind income would not be counted to the family.

 

Nonneedy Relatives

Income in kind will only be considered if the nonneedy relative chooses to make a voluntary contribution to the AU. The HSS shall determine if the nonneedy relative wishes to contribute income in kind to the support of the child(ren) in his/her care. If he/she does so, the amount of a contribution reasonably anticipated to be received shall be determined in accordance to the in kind income value chart.