ISSUE DATE: 07/2024
Earned income
Earned income is income that results from work, effort, or labor. Use gross earned income for income calculations. Gross earned income is income from employment before any payroll deductions. Gross earned income includes 401K contributions, all insurance premium payments on the pay stub and pre-tax medical/dental accounts. CCAP allows for certain income deductions. See Chapters 2 (Glossary) and 6.18 (Income Deductions).
Earned income includes:
Unearned income
Unearned income is a payment a family member did not expend individual effort or labor to receive. See Chapter 2 (Glossary) for the definition of unearned income. Use gross unearned income for income calculations. Unearned income includes only:
See Chapter 2 (Glossary) for more information about nonrecurring income.
Expenses such as legal fees, may be needed to secure payment of unearned income or deductions may be withheld from an unearned income source. Expenses and deductions must be verified to be an allowable deduction from the unearned income (except for expedited child care applications). If the expense is not a verified allowable deduction, do not allow the expense as a deduction and count the full amount of the unearned income. If the expense is a verified allowable deduction, deduct the expense from the full amount of the unearned income.
For example, the RSDI award letter will identify a gross amount, a Medicare premium, and the net amount. The gross amount of RSDI is the amount to be annualized minus the Medicare premium as this is a verified allowable deduction. See Chapter 6.18 (Income Deductions).
Other financial supports not identified above – Not counted
Financial supports not identified above as earned or unearned income are not counted as income. If a family reports income that is not counted, it is recommended that the worker enter the reported amounts into MEC² in the appropriate category or in the “Other, not counted” income type.
Financial supports that are not counted include, but are not limited to:
Legal authority
Minnesota Statutes 119B.09
Minnesota Statutes 119B.011
Minnesota Statutes 256P.01
Minnesota Statutes 256P.06
Minnesota Rules 3400.0020
Minnesota Rules 3400.0170
Minnesota Session Law 2022, Chapter 50, Article 2
Laws of MN 2023, Regular Session, Chapter 70
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