Section 401.5. Income Exclusions

Sources of income not counted in determining monthly gross income and income exclusions are:

(a) earnings of a child under 14 years of age;

(b) any medical expense not reimbursed through medical insurance which exceeds 10% of the total family monthly gross income. The medical expense must have been incurred within 90 days from the date of the application and be expected to continue or be incurred for a period of six months after the application. Medical expenses include bills for doctors, hospital costs, dental services, and health care premiums;

(c) voluntary or court-ordered child support paid out by the Primary Recipient or a member of his/her family to a present or former spouse not residing in the same household;

(d) voluntary or court-ordered child support paid out by the Primary Recipient or a member of his/her family for his/her child who is not residing in the same household;

(e) payments made pursuant to the Alaska Native Claims Settlement Act, to the extent that such payments are exempt from taxation under Section 21(a) of the Act;

(f) per capital payment to, or funds held in trust for, any individual in satisfaction or judgment of the Indian Claims Commission or the court of claims;

(g) money received from the sale of property, such as stocks, bonds, a house, or a car unless the person was engaged in the business of selling such property, in which case the net proceeds would be counted as income from self-employment;

(h) withdrawals of bank deposits;

(i) money borrowed;

(j) tax refunds including tax rebate from any source;

(k) gifts;

(l) lump sum inheritances or insurance payments;

(m) lump sum lottery winnings;

(n) capital gains;

(o) the value of the coupon allotment under the Food Stamp Act of 1964, as amended, in excess of the amount paid for the coupons;

(p) the value of USDA donated foods;

(q) the value of supplemental foods assistance under the child Nutrition Act of 1966 and the special food service programs of children under the National School Lunch Act, as amended;

(r) loans and grants, such as scholarships, obtained and used under conditions that preclude their use of current living costs;

(s) any grant or loan, to an under-graduate student for education purposes, made or insured under any program administered by the Commissioner of Education under the Higher Education Act;

(t) any payment received under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970;

(u) any home produce used for household consumption;

(v) the value of rent-free quarters;

(w) any payment made on behalf of any individual for household expenses such as rent, food, utilities;

(x) payments to VISTA volunteers pursuant to Section 404(g) of the Domestic Assistance Act of 1973;

(y) any payments to vendors by a State agency including foster care payments;

(z) payments made to an institution by an Applicant’s relative or other person for the costs of institutional care for the Applicant; and

(aa) stipends derived from the Foster Grandparents Programs under P. L. 93-113, Section 404(9).