Sarah T - Ch 8 Income

Question 1

What are different types of income?

Answer 1

1) Earned income
2) Unearned income
3) Excluded income

Question 2

What counts as earned income?

Answer 2

any income that requires work: wages, salaries, self-employment

Question 3

What are the 2 methods of deductions for self-employment?

Answer 3

1) 40% standard deduction - verification not needed
2) deduct actual expenses - need receipts! No receipts? Then they get the 40% deductions
and the customer decides which deduction they want.

Question 4

What counts as unearned income?

Answer 4

Income that isn’t received through employment.

ex: UIB, gifts, Social security benefits, CalWorks and General Relief, child support, SSI/SSP, workers comp

Question 5

Excluded Income

Answer 5

It doesn’t have to be verified. UNLESS it’s shady or you need to establish that it’s actually excludable.

Question 6

What verifications are needed?

Answer 6

Gross non-exempt income verified for all HH.
Use pay stubs,
-employer’s statement,
-income tax records,
- the Work Number (WN) (written consent needed to use this as verification)

Question 7

What do you do as an HSS if you’re not able to verify?

Answer 7

Use the info available to you to determine an amount for certification purposes.

Question 8

How do you average income if the amount isn’t consistent?

Answer 8

1) add checks for the month
2) divide by the # of checks (average)
3) enter the amount as the 1st check of the month in CalWin

Question 9

How do you find the non-monthly income when paid

• weekly?
• biweekly?
• semi-monthly?

Answer 9

weekly: (amount) x 4.33
biweekly: (amount) x 2.167
semi-monthly: (amount) x 2