5160-7        IRREGULAR INCOME

 

An individual may receive income on an irregular basis.  Examples of irregular income may include day labor, on-call work such as substitute teaching, craft sales, and receipt of child or spousal support.  Irregular income is counted if the household has already received it in the month or can reasonably expect it to be received in the month.  Income that cannot be reasonably anticipated is not included in the estimate of income.

 

The caseworker should thoroughly explore irregular income situations. When the caseworker and the individual can arrive at a reasonable estimate of how much income will be received in a month, that amount of income is included in the estimate.

 

1.    Examples of Countable Irregular Income:

 

Example #1:

Terry received child support during four of the last six months - $100 in February, $200 in April, $50 in May, and $250 in July.  Totaling the four payments ($600) and dividing them over the six-month period the payments were received, the household received an average payment of $100.  The caseworker discusses this with Terry and both agree it would be reasonable to expect an average $100 per month.

 

Example #2:

Aina creates and sells craft items and a craft store carries the items on consignment.  She receives income only after an item is sold.  Sales are irregular most of the year. However, during the summer tourist season, sales pick up.  After paying expenses, she normally receives between $300 and $500 per month from June - September.  Based on this previous sales history, the caseworker estimates Aina will receive $400/month from craft sales during the months of June - September.  Sales are extremely sporadic during the rest of the year so no income is anticipated from this source from October - May.  If Aina states that although sales are irregular during the off-season, she usually receives at least $50 a month, $50 would be counted each month from October - May.  If she states that income for most months is completely unpredictable except around Christmas, the caseworker would explore the anticipated income from Christmas sales, and include that amount in the estimate of income for December.

 

2.    Examples of Excluded Irregular Income:

 

Example #1:  

JoLynn applies for assistance in December.  She most recently received a child/spousal support check in November.  Prior to that, the last check she received was in May.  She tells the caseworker that she can never predict when the checks will arrive.  In this case, payments cannot be reasonably anticipated so no child/spousal support income is counted.

 

Example #2:   

Dave applies for assistance on November 5th.  He works on-call for the city shoveling snow during the winter, but has not worked nor received any income in November. Since it cannot be reasonably anticipated when snow will fall, when he will be called into work, or when income from this source will be received, income from this source cannot be included in the estimate of income.

 

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MC #31 (9/05)