Minnesota Statutes 256J.37 – Treatment of Income
Subdivision 1.Deemed income from ineligible assistance unit members.
The income of ineligible assistance unit members, except individuals identified in section 256J.24, subdivision 3, paragraph (a), clause (1), must be deemed after allowing the following disregards:
Terms Used In Minnesota Statutes 256J.37
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Agency: has the meaning given in section 256P. See Minnesota Statutes 256J.08
- Applicant: means a person who has submitted to a county agency an application and whose application has not been acted upon, denied, or voluntarily withdrawn. See Minnesota Statutes 256J.08
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Balanced budget: A budget in which receipts equal outlays.
- Budget month: means the calendar month which the county agency uses to determine the income or circumstances of an assistance unit to calculate the amount of the assistance payment in the payment month. See Minnesota Statutes 256J.08
- Caregiver: means a minor child's birth or adoptive parent or parents and stepparent who live in the home with the minor child. See Minnesota Statutes 256J.08
- children: includes children by birth or adoption;
(9) "day" comprises the time from midnight to the next midnight;
(10) "fiscal year" means the year by or for which accounts are reckoned;
(11) "hereafter" means a reference to the time after the time when the law containing such word takes effect;
(12) "heretofore" means a reference to the time previous to the time when the law containing such word takes effect;
(13) "judicial sale" means a sale conducted by an officer or person authorized for the purpose by some competent tribunal;
(14) "minor" means an individual under the age of 18 years;
(15) "money" means lawful money of the United States;
(16) "night time" means the time from sunset to sunrise;
(17) "non compos mentis" refers to an individual of unsound mind;
(18) "notary" means a notary public;
(19) "now" in any provision of a law referring to other laws in force, or to persons in office, or to any facts or circumstances as existing, relates to the laws in force, or to the persons in office, or to the facts or circumstances existing, respectively, on the effective date of such provision;
(20) "verified" when used in reference to writings, means supported by oath or affirmation. See Minnesota Statutes 645.45
- Contract: A legal written agreement that becomes binding when signed.
- Countable income: means earned and unearned income that is described in section 256P. See Minnesota Statutes 256J.08
- Deem: means to treat all or part of the income of an individual who is not in the assistance unit, but who is financially responsible for members of the assistance unit, as if it were income available to the assistance unit. See Minnesota Statutes 256J.08
- Department: means the Minnesota Department of Human Services. See Minnesota Statutes 256J.08
- Disqualified: means being ineligible to receive MFIP due to noncooperation with program requirements. See Minnesota Statutes 256J.08
- Earned income: has the meaning given in section 256P. See Minnesota Statutes 256J.08
- Family: includes :
(1) the following individuals who live together: a minor child or a group of minor children related to each other as siblings, half siblings, stepsiblings, or adoptive siblings, together with their natural, adoptive parents, stepparents, or caregiver as defined in subdivision 11; and
(2) a pregnant woman with no other children. See Minnesota Statutes 256J.08
- Family wage level: means 110 percent of the transitional standard as specified in section 256J. See Minnesota Statutes 256J.08
- Gross earned income: means earned income from employment before mandatory and voluntary payroll deductions. See Minnesota Statutes 256J.08
- Home: means the primary place of residence used by a person as the base for day-to-day living and does not include locations used as mail drops. See Minnesota Statutes 256J.08
- Household: means a group of persons who live together. See Minnesota Statutes 256J.08
- Income: means cash or in-kind benefit, whether earned or unearned, received by or available to an applicant or participant that is not property under section 256P. See Minnesota Statutes 256J.08
- Lump sum: means nonrecurring income as described in section 256P. See Minnesota Statutes 256J.08
- MFIP: means the assistance program authorized in this chapter. See Minnesota Statutes 256J.08
- MFIP assistance unit: means a group of mandatory or optional people receiving or applying for MFIP benefits together. See Minnesota Statutes 256J.08
- Minor: means an individual under the age of 18. See Minnesota Statutes 645.451
- Month: means a calendar month and "year" means a calendar year, unless otherwise expressed; and "year" is equivalent to the expression "year of our Lord. See Minnesota Statutes 645.44
- Parent: means a child's biological or adoptive parent who is legally obligated to support that child. See Minnesota Statutes 256J.08
- Participant: includes any of the following:
(1) a person who is currently receiving cash assistance or the food portion available through MFIP;
(2) a person who withdraws a cash or food assistance payment by electronic transfer or receives and cashes an MFIP assistance check or food coupons and is subsequently determined to be ineligible for assistance for that period of time is a participant, regardless whether that assistance is repaid;
(3) the caregiver relative and the minor child whose needs are included in the assistance payment;
(4) a person in an assistance unit who does not receive a cash and food assistance payment because the case has been suspended from MFIP; and
(5) a person who receives cash payments under family stabilization services under section 256J. See Minnesota Statutes 256J.08
- Payment month: means the calendar month for which the assistance payment is paid. See Minnesota Statutes 256J.08
- Prospective budgeting: has the meaning given in section 256P. See Minnesota Statutes 256J.08
- Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
- Qualified professional: means an individual as defined in section 256P. See Minnesota Statutes 256J.08
- SSI: means the program authorized under title XVI of the Social Security Act. See Minnesota Statutes 256J.08
- state: extends to and includes the District of Columbia and the several territories. See Minnesota Statutes 645.44
- Transitional standard: means the basic standard for a family without earned income and is a combination of the cash portion and food portion as specified in section 256J. See Minnesota Statutes 256J.08
- Unearned income: has the meaning given in section 256P. See Minnesota Statutes 256J.08
(1) an earned income disregard as determined under section 256P.03;
(2) all payments made by the ineligible person according to a court order for spousal support or the support of children not living in the assistance unit’s household; and
(3) an amount for the unmet needs of the ineligible persons who live in the household who, if eligible, would be assistance unit members under section 256J.24, subdivision 2 or 4, paragraph (b). This amount is equal to the difference between the MFIP transitional standard when the ineligible persons are included in the assistance unit and the MFIP transitional standard when the ineligible persons are not included in the assistance unit.
Subd. 1a.Deemed income from disqualified assistance unit members.
The income of disqualified members must be deemed after allowing the following disregards:
(1) an earned income disregard as determined under section 256P.03;
(2) all payments made by the disqualified member according to a court order for spousal support or the support of children not living in the assistance unit’s household; and
(3) an amount for the unmet needs of other ineligible persons who live in the household who, if eligible, would be assistance unit members under section 256J.24, subdivision 2 or 4, paragraph (b). This amount is equal to the difference between the MFIP transitional standard when the ineligible persons are included in the assistance unit and the MFIP transitional standard when the ineligible persons are not included in the assistance unit. An amount shall not be allowed for the needs of disqualified members.
Subd. 1b.Deemed income from parents of minor caregivers.
In households where minor caregivers live with a parent or parents or a stepparent who do not receive MFIP for themselves or their minor children, the income of the parents or a stepparent must be deemed after allowing the following disregards:
(1) income of the parents equal to 200 percent of the federal poverty guideline for a family size not including the minor parent and the minor parent’s child in the household; and
(2) all payments made by parents according to a court order for spousal support or the support of children not living in the parent’s household.
Subd. 2.Deemed income and assets of sponsor of noncitizens.
(a) If a noncitizen applies for or receives MFIP, the agency must deem the income and assets of the noncitizen’s sponsor and the sponsor’s spouse as provided in this paragraph and paragraph (b) or (c), whichever is applicable. The deemed income of a sponsor and the sponsor’s spouse is considered unearned income of the noncitizen. The deemed assets of a sponsor and the sponsor’s spouse are considered available assets of the noncitizen.
(b) The income and assets of a sponsor who signed an affidavit of support under title IV, sections 421, 422, and 423, of Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and the income and assets of the sponsor’s spouse, must be deemed to the noncitizen to the extent required by those sections of Public Law 104-193.
(c) The income and assets of a sponsor and the sponsor’s spouse to whom the provisions of paragraph (b) do not apply must be deemed to the noncitizen to the full extent allowed under title V, section 5505, of Public Law 105-33, the Balanced Budget Act of 1997.
Subd. 3.Earned income of wage, salary, and contractual employees.
The agency must include gross earned income less any disregards in the initial income test. Gross earned income received by persons employed on a contractual basis must be prorated over the period covered by the contract even when payments are received over a lesser period of time.
[See Note.]
Subd. 3a.Rental subsidies; unearned income.
(a) Effective July 1, 2003, the agency shall count $50 of the value of public and assisted rental subsidies provided through the Department of Housing and Urban Development (HUD) as unearned income to the cash portion of the MFIP grant. The full amount of the subsidy must be counted as unearned income when the subsidy is less than $50. The income from this subsidy shall be budgeted according to section 256P.09.
(b) The provisions of this subdivision shall not apply to an MFIP assistance unit which includes a participant who is:
(1) age 60 or older;
(2) a caregiver who is suffering from an illness, injury, or incapacity that has been certified by a qualified professional when the illness, injury, or incapacity is expected to continue for more than 30 days and severely limits the person’s ability to obtain or maintain suitable employment; or
(3) a caregiver whose presence in the home is required due to the illness or incapacity of another member in the assistance unit, a relative in the household, or a foster child in the household when the illness or incapacity and the need for the participant’s presence in the home has been certified by a qualified professional and is expected to continue for more than 30 days.
(c) The provisions of this subdivision shall not apply to an MFIP assistance unit where the parental caregiver is an SSI participant.
[See Note.]
Subd. 3b.
[Repealed, 2007 c 147 art 2 s 63]
Subd. 4.Self-employment.
Self-employment has the meaning given in section 256P.01, subdivision 7.
Subd. 5.Self-employment earnings.
The agency must determine self-employment income according to section 256P.05, subdivision 2.
Subd. 6.Self-employment budget period.
The agency must budget self-employment earned income according to section 256P.05, subdivision 3.
Subd. 7.Farm income.
Farm income shall be treated as self-employment income under section 256P.05, subdivision 2. The agency must budget farm income as self-employment earned income according to section 256P.05, subdivision 3.
Subd. 8.Rental income.
Rental income is subject to the requirements of section 256P.05.
Subd. 9.Unearned income.
(a) The agency must apply unearned income to the MFIP transitional standard. When determining the amount of unearned income, the agency must deduct the costs necessary to secure payments of unearned income. These costs include legal fees, medical fees, and mandatory deductions such as federal and state income taxes.
(b) The agency must convert unearned income received on a periodic basis to monthly amounts by prorating the income over the number of months represented by the frequency of the payments. The agency must begin counting the monthly amount in the month the periodic payment is received and budget it according to the assistance unit’s budget cycle.
Subd. 10.Treatment of lump sums.
(a) The agency must treat lump-sum payments as earned or unearned income. If the lump-sum payment is included in the category of income identified in subdivision 9, it must be treated as unearned income. A lump sum is counted as income in the month received and budgeted either prospectively or retrospectively depending on the budget cycle at the time of receipt. When an individual receives a lump-sum payment, that lump sum must be combined with all other earned and unearned income received in the same budget month, and it must be applied according to paragraphs (a) to (c). A lump sum may not be carried over into subsequent months. Any funds that remain in the third month after the month of receipt are counted in the asset limit.
(b) For a lump sum received by an applicant during the first two months, prospective budgeting is used to determine the payment and the lump sum must be combined with other earned or unearned income received and budgeted in that prospective month.
(c) For a lump sum received by a participant after the first two months of MFIP eligibility, the lump sum must be combined with other income received in that budget month, and the combined amount must be applied retrospectively against the applicable payment month.
(d) When a lump sum, combined with other income under paragraphs (b) and (c), is less than the MFIP transitional standard for the appropriate payment month, the assistance payment must be reduced according to the amount of the countable income. When the countable income is greater than the MFIP standard or family wage level, the assistance payment must be suspended for the payment month.