SECTION 340:20-1-11. Income and liquid resources

(a)   Income. All gross earned and unearned income received by the household, except for income exclusions per (b) of this Section, is considered in determining financial eligibility per Section 8624 of Title 42 of the United States Code. When the household receives income more than once per month, income is converted to a monthly amount and rounded to the nearest dollar. When a household member's income is reduced due to recoupment of an overpayment or garnishment, the gross amount before the recoupment or garnishment is considered.

(1)   Gross income standard. The income of eligible households must not exceed the gross income standard per Oklahoma Department of Human Services (DHS) Appendix C-7, Low Income Home Energy Assistance Program Income and Resource Level by Household Size.

(A)   When the household includes one or more ineligible aliens, part of the ineligible alien(s)' income is considered in determining gross income for the other household members. Refer to (4) of this subsection to determine the countable portion of the ineligible alien(s)' income. The ineligible alien(s) is not considered in household size when determining the gross income standard for the other household members.

(B)   When all household members and their income are included in Supplemental Nutrition Assistance Program food benefits, Temporary Assistance for Needy Families or State Supplemental Payment cash assistance, or Child Care Subsidy benefits, the gross income used to establish eligibility for the other program is used to determine eligibility for Low Income Home Energy Assistance Program benefits. When some, but not all, household members are included in other benefits, the gross income of the household member(s) whose income was not verified must be determined for the application month per (2) and (3) of this subsection.

(C)   When the household does not receive other benefits, the household's gross income for the application month is calculated to determine income eligibility per (2) and (3) of this subsection.

(2)   Earned income. Earned income is income a household member receives in the form of wages, commission, self-employment, or training allowances, and for which he or she puts forth labor. When all household members' earned income is not established for another program and a household member works for an employer, gross earned income is calculated for the application month. When a household member is self-employed or a contract employee, the household member's income is averaged over 12 months to determine the average gross monthly income.

(A)   When the household member receives an hourly wage, has not received all earned income for the month by the application date, and his or her income fluctuates, the last 30-calendar days of income is used to anticipate income for the pay periods not yet received. When the household member:

(i)   receives an extra paycheck in the application month due to a third or fifth week and the income is ongoing, the last 30-calendar days of income is used to determine countable monthly income instead of counting the extra paycheck; or

(ii)   started a new job and the amount of the first paycheck is not known, the earnings are not considered.

(B)   When the household member's income does not fluctuate, income received during the month prior to the application month may be used.

(C)   When the household member derives his or her annual income by contract or self-employment in a period of time shorter than one year or receives an annual salary, the income is divided over a 12-month period to determine countable monthly income.

(D)   To arrive at the monthly gross earned income when the household member is self-employed and:

(i)   filed an income tax return on the self-employment income for the most recent tax year, the gross self-employment income, including capital gains, shown on the income tax return is divided by 12 or the number of months the business was in operation when the business operated less than 12 months; or

(ii)   did not file an income tax return for the most recent tax year, the gross self-employment income, including capital gains, shown on the household member's business records is divided by 12 or the number of months the business was in operation when the business operated less than 12 months.

(3)   Unearned income. Unearned income is income a household receives that is not in the form of wages, self-employment, or training allowances, and for which a person does not put forth labor. Unearned income received or expected to be received during the month of application is considered unless it is excluded per (b) of this Section.

(4)   Income calculation for an ineligible alien. An ineligible alien is a person who does not meet the eligibility criteria described in Oklahoma Administrative Code (OAC) 340:20-1-8. When an ineligible alien is part of an eligible household, the earned and unearned gross income of the ineligible alien and his or her ineligible dependents is calculated in the same manner as it is for other household members. The countable portion of the ineligible alien's income is computed per (A) through (E) of this paragraph and added to household income for the eligible members before determining if the household meets the gross income standard per Appendix C-7.

(A)   Subtract the earned income deduction per Appendix C-7 for each employed ineligible alien.

(B)   Add the unearned income of the ineligible alien.

(C)   Subtract the need standard per DHS Appendix C-1, Maximum Income, Resource, and Payment Standards Schedule IX, for the ineligible alien and his or her ineligible alien dependents who:

(i)   are claimable for federal personal income taxes;

(ii)   live in the same household; and

(iii)   are not included in the household size when determining the gross income standard or the LIHEAP benefit level for the eligible household members.

(D)   Subtract all applicable deductions per (c) of this Section for the ineligible alien(s).

(E)   The remaining amount is added to the countable income of the household members eligible for LIHEAP.

(b)   Income exclusions. Exclude from countable income:

(1)   the food benefit amount under the Food and Nutrition Act of 2008;

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

(3)   educational assistance including grants, work study, scholarships, fellowships, educational loans on which payment is deferred, veteran's education benefits, and the like;

(4)   loans regardless of use when a bona fide debt or obligation to pay can be established.

(A)   Criteria to establish a loan as bona fide includes an acknowledgment of obligation to repay or evidence that the loan is from a person or financial institution in the loan business.

(B)   When the loan is from a person(s) not in the loan business, the borrower's acknowledgment of obligation to repay, with or without interest, is required to indicate the loan is bona fide;

(5)   Indian per capita payments distributed from judgment awards or trust funds made pursuant to Public Law (P.L.) 98-64.

(A)   Exclude any interest or investment income accrued on such funds while held in trust or any purchases made with judgment funds, trust funds, interest, or investment income accrued on such funds.

(B)   Exclude per capita payments, such as Osage tribe headrights, income from mineral leases, or other tribal business ventures, when they meet the distribution requirements stated in this paragraph.

(C)   Consider as income, interest or income derived from the principal or produced by purchases made with the funds after distribution.

(D)   The per capita exclusion applies per person rather than per family;

(6)   special allowance for school expenses made available upon petition in writing from trust funds of the student;

(7)   benefits from state and community programs on aging from Title III and Title V. Title III and Title V are under the Older Americans Act (OAA) of 1965, amended by P.L. 100-175 to become the OAA, as amended in 2000. Each state and various organizations receive Title V funds. These organizations include:

(A)   Experience Works;

(B)   National Council on Aging;

(C)   National Council of Senior Citizens;

(D)   American Association of Retired Persons (AARP);

(E)   U.S. Forest Service;

(F)   National Association for Spanish Speaking Elderly;

(G)   National Urban League;

(H)   National Council on Black Aging; and

(I)   National Council on Indian Aging;

(8)   allowances, stipends, earnings, compensation in lieu of wages, grants, and other payments made for participation in Workforce Innovation and Opportunity Act (WIOA) of 2014, or other federally-funded workforce training program to persons of all ages and student status with the exception of income paid to persons 19 years of age and older for on-the-job training. This income is treated as any other earned income;

(9)   payments for supportive services or reimbursement for out-of-pocket expenses made to individual volunteers serving as foster grandparents, senior health aides, or senior companions, and to persons serving in the Service Corps of Retired Executives (SCORE) and Active Corps of Executives (ACE);

(10)   payments, allowances, or earnings to persons participating in programs under Title I of the National and Community Service Act, such as University Year for Action (UYA), Senior Companion Program, AmeriCorps Volunteers in Service to America (VISTA), and other AmeriCorps Programs;

(11)   the value of supplemental food assistance received under the Child Nutrition Act or the special food service program for children under the National School Lunch Act;

(12)   any portion of payments, made under the Alaska Native Claims Settlement Act to an Alaska native, which are exempt from taxation under the Settlement Act;

(13)   Experimental Housing Allowance Program (EHAP) payments made under Annual Contributions Contracts entered into prior to January 1, 1975, under Section 23 of the U.S. Housing Act of 1937, as amended;

(14)   earnings of a minor dependent child who is a full-time student;

(15)   rental or housing subsidies by governmental agencies, such as the United States Department of Housing and Urban Development (HUD), received in-kind or in cash for rent, mortgage payments, or utilities;

(16)   reimbursements from an employer for out-of-pocket expenditures and allowances for travel or training to the extent the funds are used for expenses directly related to such travel or training. Uniform allowances are excluded when the uniform is uniquely identified with the company name or logo. Any amount the employer adds to the employee's gross income as a benefit allowance to pay for a reimbursable expense, such as insurance or dependent care is excluded. When the monthly benefit allowance exceeds the monthly expense and the employer includes the excess in the employee's pay each month, the worker counts the excess benefit allowance as earned income;

(17)   advance payments of Earned Income Tax Credit (EITC) received as part of a paycheck or EITC refunds as a result of filing a federal income tax return;

(18)   refunds of state EITC as a result of filing a state income tax return;

(19)   payments made from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re Agent Orange Product Liability Litigation, M.D.L. No. 381 (E.D.N.Y.);

(20)   payments received for Emergency Assistance to Needy Families with Children;

(21)   payments made by others on the household's behalf;

(22)   in-kind benefits received by an employee from an employer in lieu of wages or in conjunction with wages;

(23)   payments made under the Radiation Exposure Compensation Act (P.L. 101-426) enacted October 15, 1990;

(24)   funds distributed by Federal Emergency Management Assistance (FEMA) due to a disaster or emergency and to persons directly affected by the event. This exclusion also applies to comparable disaster assistance provided by states, local governments, and disaster assistance organizations. For payments to be excluded, the disaster or emergency must be declared by the President of the United States;

(25)   interests of individual Native Americans in trust or restricted lands;

(26)   income up to $2,000 per calendar year received by individual Native Americans that is derived from leases or other uses of an individually-owned trust or restricted lands. Any remaining disbursements from the trust or the restricted lands are considered as unearned income;

(27)   payments made to persons because of their status as victims of Nazi persecution;

(28)   monetary allowances per Section 1823(c) of Title 38 of the United States Code (U.S.C.) provided to certain persons who are children of Vietnam War veterans;

(29)   Family Support Assistance Payment Program payments paid to persons by DHS Developmental Disabilities Services; and

(30)   money deposited into or withdrawn from a qualified Oklahoma Achieving a Better Life Experience (ABLE) Program account per Sections 4001.1 through 4001.5 of Title 56 of the Oklahoma Statutes or a qualified ABLE Program account set up in any other state per the ABLE Act of 2014, 26 U.S.C. § 529A, is excluded as income when the client:

(A)   provides documents to verify the account meets exemption criteria;

(B)   verifies money deposited in the account does not exceed the annual federal gift tax exclusion amount per 26 U.S.C. § 2503(b). Any money deposited in the account in the calendar year in excess of the annual federal gift tax exclusion amount is considered as countable income in the amount deposited; and

(C)   verifies withdrawals from the account are used to pay qualified disability expenses. Money withdrawn for reasons other than to pay qualified disability expenses is considered as income for the month of withdrawal.

(c)   Income deductions. When applicable, subtract deductible expenses per (1) through (4) of this paragraph from the gross income. Deductible expenses may include:

(1)   verified non-reimbursed medical expenses paid by persons 60 years of age or older or persons considered disabled per OAC 340:50-5-4;

(2)   legally binding child support paid by a household member to or for a non-household member when verified, including payments made to a third party on behalf of the non-household member;

(3)   the earned income deduction per DHS Appendix C-7 for each employed household member. In addition, when a household member is self-employed, deduct 50 percent of the household member's gross self-employment income for incurred business expenses. When the household member did not incur business expenses, he or she is not eligible for a business expense deduction; and

(4)   child care copayment when the household receives Child Care Subsidy benefits through DHS.

(d)   Benefit amount. Refer to Appendix C-7-A, Estimated Low Income Home Energy Assistance Program (LIHEAP) Benefit Level for all Households, to determine the LIHEAP benefit amount. The LIHEAP benefit amount is based on household size, excluding ineligible aliens, the household's net income after applicable deductions are subtracted per (c) of this Section, and the primary energy source.

(e)   Resources. Liquid resources, such as cash on hand, checking or savings accounts, certificates of deposits, or stocks or bonds, cannot exceed the allowable resource level per Appendix C-7. The applicant's statement is accepted as verification unless the information is inconsistent or questionable.

[Source: Amended at 9 Ok Reg 191, eff 10-17-91 (emergency); Amended at 9 Ok Reg 2455, eff 6-25-92; Amended at 10 Ok Reg 637, eff 12-14-92 (emergency); Amended at 10 Ok Reg 2259, eff 6-11-93; Amended at 11 Ok Reg 483, eff 11-15-93 (emergency); Amended at 11 Ok Reg 1671, eff 5-12-94; Amended at 12 Ok Reg 377, eff 11-17-94 (emergency); Amended at 12 Ok Reg 1713, eff 6-12-95; Amended at 14 Ok Reg 577, eff 12-12-96 (emergency); Amended at 14 Ok Reg 1336, eff 5-12-97; Amended at 15 Ok Reg 152, eff 12-1-97 (emergency); Amended at 15 Ok Reg 378, eff 1-1-98 (emergency); Amended at 15 Ok Reg 1604, eff 5-11-98; Amended at 20 Ok Reg 2912, eff 10-1-03 (emergency); Amended at 21 Ok Reg 837, eff 4-26-04; Amended at 25 Ok Reg 1301, eff 6-1-08; Amended at 26 Ok Reg 816, eff 6-1-09; Amended at 27 Ok Reg 1195, eff 6-1-10; Amended at 28 Ok Reg 805, eff 6-1-11; Amended at 29 Ok Reg 760, eff 7-1-12; Amended at 34 Ok Reg 498, eff 3-7-17 (emergency); Amended at 35 Ok Reg 1620, eff 9-17-18]