SECTION 340:40-7-12. Sources of excluded income

  Only the income listed in this Section is excluded in determining a household's eligibility for a child care benefit. No other income is excluded.

(1)   Lump sum payments. One-time lump sum payments are excluded as income. Recurring lump sum payments are excluded as a countable income source unless specifically mentioned per Oklahoma Administrative Code (OAC) 340:40-7-11.

(2)   In-kind income. In-kind income is excluded as income. In-kind income is defined as any gain or benefit that is not in the form of money paid directly to the household. This includes non-monetary or in-kind benefits, such as meals, clothing, public housing, or produce from a garden.

(3)   Money received from the sale of property. Money received from the sale of property, such as stocks, bonds, or a house or car is excluded. This exclusion does not apply when the person is engaged in the business of selling such property.

(4)   Bank or trust account withdrawals. Money withdrawn from a bank or trust account is excluded as income even when used to meet current living expenses.

(5)   Capital gains. The proceeds from the sale of capital goods or equipment are excluded.

(6)   Household income for certain children adopted through Oklahoma Department of Human Services (DHS). The income of all household members is exempt for a child only when conditions in (A) through (E) are met. The:

(A)   child was adopted through DHS or a federally-recognized Indian tribe, as defined by the Federal and Oklahoma Indian Child Welfare Acts, by the parent applying for benefits;

(B)   adoptive parent applying for benefits must provide:

(i)   a fully executed Form 04AN002E, Adoption Assistance Agreement, listing child care as an adoption assistance benefit for the child;

(ii)   Form 04AN033E, Post Adoption Child Care Referral;

(iii)   the Final Decree of Adoption; and

(iv)   a form of identity;

(C)   adoptive parent and child are Oklahoma residents;

(D)   child is 5 years of age or younger. When a child turns 6 years of age during the 12-month eligibility period, household income remains exempt until the next renewal; and

(E)   adoptive parent meets an allowable need factor and provides proof, per OAC 340:40-7-7 and OAC 340:40-7-8. In a two-parent family, both parents must meet an allowable need factor.

(7)   Household income when at least one child attends an Early Head Start-Child Care Partnership (EHS-CCP) grant program or an Oklahoma Early Childhood Program (OECP). The household income is exempt for all children in care when at least one child attends an EHS-CCP grant program or an OECP and the household meets the income threshold, per DHS Appendix C-4, Child Care Eligibility/Copayment Chart.

(8)   Earnings of children. The earnings of a person 17 years of age and younger who is considered a child in the case are excluded as long as the child attends school regularly. The exclusion continues to apply during temporary interruptions in school attendance due to semester or vacation breaks, provided the child's enrollment resumes following the break. When the child is a minor parent and the payee, the minor parent's earnings are treated as adult income.

(9)   Irregular income. Any income received too infrequently or irregularly to be reasonably anticipated is not counted unless it is in excess of $30 per calendar quarter.

(10)   Reimbursements. Reimbursements for past or future expenses not exceeding actual expenses are excluded.

(11)   Tax refunds. Exclude federal or state income tax refunds including Earned Income Tax Credit (EITC) payments.

(12)   Money received for third parties. Money received and used for the care and maintenance of a third party who is not a household member is excluded.

(13)   Loans. All loans, including loans from private as well as commercial institutions, are excluded as income. When the household states someone is loaning the household money to meet expenses, a statement signed by both parties is required indicating the payment is a loan and must be repaid. When the household states it receives loans on a recurrent or regular basis from the same source, the lender must sign an affidavit stating the payments are loans that must be repaid or that payments will be made in accordance with an established repayment schedule.

(14)   Grants. Grants obtained and used under conditions that preclude their use for current living costs are excluded.

(15)   Educational assistance. Educational assistance is excluded as income and includes, but is not limited to:

(A)   work study;

(B)   scholarships;

(C)   fellowships;

(D)   educational loans when payment is deferred; and

(E)   veterans' education benefits.

(16)   Stipends. Stipends paid to students participating in the Indian Vocational Education Program through the Carl D. Perkins Vocational and Applied Technology Education Act are excluded as income.

(17)   Service Corps of Retired Executives (SCORE) and Active Corps of Executives (ACE). Payment for supportive services or reimbursement of out-of-pocket expenses made to volunteers serving as foster grandparents, senior health aides, senior companions, and to persons serving in SCORE and ACE is excluded as income.

(18)   Government rent or housing subsidies. Government rent or housing subsidies by government agencies received in-kind or in cash for rent, mortgage payments, or utilities are excluded as income.

(19)   Foster care payments. Foster care payments received for a foster child in state or tribal custody are excluded as income.

(20)   Title IV E of the Social Security Act or State Adoption Subsidy. Federal or state funded adoption subsidy payments made to adoptive parents are excluded as income.

(21)   Victims of Crime Act of 1984. Payments made from the crime victims' compensation program as amended in Section 1402 of the Victims of Crime Act of 1984 and Section 10602 of Title 42 of the United States Code (42 U.S.C § 10602) are excluded as income.

(22)   Family Support Assistance Payment Program. Family Support Assistance Payment Program payments paid to persons by DHS Developmental Disabilities Services are excluded as income.

(23)   Vendor payments. Vendor payments made directly to the household's creditors, a person, or an organization providing a service to the household, are excluded as income unless a court order or other legally binding agreement specifies the money is to be paid directly to the client.

(24)   Money received by another household for a household member.

(A)   When a child spends part of the month in two separate households and receives countable income, the worker considers the portion of the income received by the household applying for or receiving a child care benefit as income and excludes the remainder.

(B)   When a minor parent is the payee and lives with a parent or caretaker, child support received for the minor parent is considered income for the parent or caretaker and not considered for the minor parent's child care benefit.

(25)   Money deposited into or withdrawn from a qualified Oklahoma Achieving a Better Life Experience (ABLE) Program account. Money deposited into or withdrawn from a qualified 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 that is 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 were 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.

(26)   Income excluded by federal law. Income excluded by federal law is defined as:

(A)   payments received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970;

(B)   payments received:

(i)   under the Alaska Native Claims Settlement Act, Public Law (P. L.) 92-203, § 21(a);

(ii)   under the Sac and Fox Indian Claims Agreement, P.L. 94-189;

(iii)   from the disposition of funds to the Grand River Band of Ottawa Indians, per P.L. 94-540;

(iv)   by members of the Confederated Tribes of the Mescalero Reservation, per P.L. 95-433;

(v)   under the Maine Indian Claims Settlement Act of 1980 to members of the Passamaquoddy and the Penobscot Nation, P.L. 96-420; or

(vi)   by an individual as a lump sum or a periodic payment via the Cobell Settlement, per the Claims Resolution Act of 2010, P.L. 111-291;

(C)   any payment to volunteers under Title II, Retired and Senior Volunteer Program, Foster Grandparents and others, of the Domestic Volunteer Services Act of 1973, P.L. 93-113 as amended. Payments under Title I of that Act, Volunteers in Service To America, University Year for Action, and Urban Crime Prevention Program, to volunteers are excluded only when the monthly amount, converted to an hourly rate, is less than the Oklahoma minimum wage;

(D)   income derived from submarginal land of the United States held in trust for certain Indian tribes, per P.L. 94-114, Section 6;

(E)   Indian per capita payments distributed from judgment awards and trust funds, per P.L. 98-64. 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 is excluded. Any per capita payments, headrights of the Osage tribe, income from mineral leases or other tribal business ventures are excluded as long as the payments are paid per capita. Any interest or income derived from the funds after distribution is considered as any other income. The per capita exclusion applies per person rather than per family;

(F)   income up to $2,000 per year received by individual Indians derived from leases or other uses of individually-owned trust or restricted lands, is not counted as income. The income exclusion applies to calendar years beginning January 1, 1994. Any remaining disbursements from the trust or restricted lands are considered income;

(G)   allowances, stipends, earnings, compensation in lieu of wages, grants, and other payments made for participation in the Workforce Innovation and Opportunity Act (WIOA) 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, per OAC 340:40-7-11(b)(4);

(H)   payments, allowances, or earnings to persons participating in programs under Title I of the National and Community Service Trust Act of 1993. Title I includes three Acts: Serve-America, The Community Service, Schools and Service-Learning Act of 1990; the American Conservation and Youth Service Corps Act of 1990; and the National and Community Service Act. Most of the payments are made as a weekly stipend or for educational assistance. The Higher Education Service-Learning Program and the AmeriCorps Umbrella Program come under this Title. This includes AmeriCorps income;

(I)   payments or allowances made under any federal law for the purpose of energy assistance, Low Income Home Energy Assistance Program (LIHEAP), and utility payments and reimbursements made by the Department of Housing and Urban Development (HUD) and the Farmers Home Administration (FmHA);

(J)   the amount of the mandatory salary reduction of military service personnel used to fund the G.I. Bill;

(K)   benefits from State and Community Programs on Aging, per Title III and Title V of the Older Americans Act of 1965 as amended by P.L. 114-144, Older Americans Act Reauthorization Act of 2016. Each state and various organizations receive Title V funds. These organizations include:

(i)   Experience Works;

(ii)   National Council on Aging;

(iii)   National Council of Senior Citizens;

(iv)   American Association of Retired Persons Foundation;

(v)   United States (U.S.) Forest Service;

(vi)   National Association for Spanish Speaking Elderly;

(vii)   National Urban League;

(viii)   National Council on Black Aging; and

(ix)   National Council on Indian Aging;

(x)   Asociación Nacional Pro Personas Mayores;

(xi)   Associates for Training and Development, Inc.;

(xii)   American Samoa;

(xiii)   Easter Seals, Inc.;

(xiv)   Goodwill Industries International, Inc.;

(xv)   Institute for Indian Development;

(xvi)   National Able Network;

(xvii)   National Asian Pacific Center on Aging;

(xviii)   National Caucus and Center on Black Aged, Inc.;

(xix)   National Older Worker Career Center;

(xx)   Operation A.B.L.E. of Greater Boston, Inc.;

(xxi)   Senior Service America, Inc.;

(xxii)   SER-Jobs for Progress National, Inc.;

(xxiii)   Workplace, Inc.; and

(xxiv)   VANTAGE Aging;

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

(M)   payments received under the Civil Liberties Act of 1988. These payments are made to persons of Japanese ancestry who were detained in internment camps during World War II;

(N)   payments made from the Radiation Exposure Compensation Trust Fund as compensation for injuries or deaths resulting from exposure to radiation from nuclear testing and uranium mining;

(O)   payments for the fulfillment of a Plan for Achieving Self-Support under Title XVI of the Social Security Act;

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

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

(R)   monetary allowances provided to certain children of Vietnam War veterans, per Chapter 18 of Title 38 of the United States Code;

(S)   federal funds distributed by Federal Emergency Management Assistance (FEMA) due to a disaster or emergency 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;

(T)   the value of the food benefit allotment under the Food and Nutrition Act of 2008;

(U)   the value of supplemental food assistance under the Child Nutrition Act of 1966 and the special food services program for children under the National School Lunch Act of 1970, both as amended, per Omnibus Budget Reconciliation Act of 1981; and

(V)   income received by a member of the United States Armed Forces, per 37 U.S.C. Chapter 5 and, per 273.9(c)(20) of Title 7 of the Code of Federal Regulations that is:

(i)   received in addition to the service member's basic pay during combat deployment;

(ii)   received as a result of the service member's deployment or service in an area designated as a combat zone as determined per Executive Order or P.L.; and

(iii)   not received by the service member prior to the service member's deployment to or service in a federally designated combat zone.

[Source: Added at 17 Ok Reg 25, eff 10-1-99 (emergency); Added at 17 Ok Reg 1244, eff 6-1-00; Amended at 19 Ok Reg 1757, eff 6-14-02; Amended at 20 Ok Reg 2048, eff 7-1-03; Amended at 20 Ok Reg 2800, eff 8-1-03 (emergency); Amended at 20 Ok Reg 2916, eff 8-1-03 (emergency); Amended at 21 Ok Reg 1377, eff 7-1-04; Amended at 21 Ok Reg 1364, eff 9-1-04; Amended at 22 Ok Reg 61, eff 9-1-04 (emergency); Amended at 22 Ok Reg 796, eff 5-12-05; Amended at 26 Ok Reg 820, eff 6-1-09; Amended at 27 Ok Reg 21, eff 10-1-09 (emergency); Amended at 27 Ok Reg 1220, eff 6-1-10; Amended at 30 Ok Reg 655, eff 6-1-13; Amended at 32 Ok Reg 1875, eff 10-1-15; Amended at 34 Ok Reg 58, eff 10-1-16 (emergency); Amended at 34 Ok Reg 502, eff 3-1-17 (emergency); Amended at 34 Ok Reg 1481, eff 10-1-17; Amended at 36 Ok Reg 363, eff 3-1-19 (emergency); Amended at 37 Ok Reg 1813, eff 9-15-20]