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Minnesota Department of Human Services Combined Manual
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REMOVING OR RECALCULATING INCOME

ISSUE DATE: 10/2015

Follow these procedures for removing income in certain situations. Also see 0022.03 (How and When to Use Prospective Budgeting), 0022.06 (How and When to Use Retrospective Budgeting), 0022.06.03 (When Not to Budget Income in Retro. Cases), 0022.09 (When to Switch Budget Cycles - Cash), 0022.09.03 (When to Switch Budget Cycles - SNAP).

If the changes in income result in potential eligibility for other benefits, see 0012.12 (Applying for Other Benefits).

Different provisions may apply to receipt of lump sums. See 0022.15 (Counting Lump Sums as Income).


MFIP:

It may be possible to supplement a unit's grant if the unit reports a significant change in income. A significant change is when the unit's gross earned and/or unearned income for the payment month declines by $65 plus 50% or more from the gross earned and/or unearned income budgeted in the budget month. Do not consider significant change as restored benefits.

If the unit reports that it expects income to decline, act right away. The unit must verify the income will decrease or end before you issue the supplement. Do not wait until the end of the month to verify the exact amount of the decrease. See TEMP Manual TE19.156 (QTIP #156 - MFIP Stop Work Procedures). For information on verifying changes in income, see Chapter 10 (Verification).

The unit may only receive a supplement for a change it reports in the current month or for the month before. Issue a supplement no more than 7 days after the unit verifies the change. Do not issue a supplement for a grant you have not yet issued.

Budget adjustments that result from significant changes are limited to 2 in a 12 month period, regardless of the reason for the change. Count back 12 months from the month the client is requesting the change to determine eligibility for significant change.

If the unit reports (and verifies) a decrease in actual or expected income, follow these procedures to determine the supplement to issue.

1.

Calculate the unit's gross income, including deemed income, for the month. See 0016 (Income From People Not in the Unit), 0017 (Determining Gross Income).

2.

Subtract the figure in Step 1 from the gross income, including deemed income, from the budget month.

3.

Subtract $65 from the unit’s gross income, including deemed income, from the budget month.

4.

Multiply the amount from Step 3 (gross income from the budget month minus $65) by 0.50.

5.

If the amount in Step 2 is less than the amount in Step 4, there is no significant change. If the amount in Step 2 is equal to or greater than the amount in Step 4, go to Step 6.

6.

Recalculate the current month's grant using the client's reported income.

7.

Subtract the amount of the grant you issued from the amount in Step 6. Issue the difference as a supplement.



Significant change does not apply in any of these situations:

In the payment month corresponding to a budget month in which the unit receives a lump sum.

When a unit member is on strike.

In the payment month corresponding to the budget month in which the unit gets an extra paycheck.

For self-employment income. See 0017.15.33.03 (Self-Employment, Convert Inc. to Monthly Amt) for information on "major change" which applies to self-employment income.


See TEMP Manual TE02.13.11 (Significant Change) for MAXIS instructions.


DWP:

For recalculating income, see 0022.12 (How to Calc. Benefit Level - MFIP/DWP/GA).


SNAP, GA:

Stop counting the income of a participant beginning with the payment month the person is removed from the assistance unit.

Stop counting the income of an ineligible household member whose income was considered, beginning with the payment month following the month it is reported that person left the household.

For information on reporting requirements, see 0007 (Reporting).

See TEMP Manual TE02.13.11 (Significant Change) for MAXIS instructions.


MSA:

Stop counting the income of a formerly financially responsible person for the 1st month after the person loses financial responsibility.


GRH:

Stop counting the income of a participant beginning with the month after the income stopped.

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