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Effective: December 1, 2006 |
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20.25.05ar1 - In-Kind Income (Archive) |
Archived: March 1, 2009 |
In-kind income is income a person receives in a form other than cash. It may be payment for work or service or a non-cash gift or contribution.
Types of in-kind income and general policy for all programs include:
l Free rent in exchange for caretaking duties.
n Determine if compensation to an apartment building caretaker is in-kind income or earned income.
n If the caretaker receives a paycheck with an amount for rent deducted, the gross earnings are earned income, not in-kind income.
Example:
Joyce is receiving free rent for caretaking of her apartment building. She has the option to be paid money, or to receive free rent. Joyce receives a paycheck for caretaking from which her rent is deducted.
Action:
This is earned income and must be counted.
Example:
Keeshawn is a caretaker of his apartment complex in exchange for free rent. He does not receive a paycheck.
Action:
This is in-kind income. Follow program provisions to determine if this income is counted or excluded.
l Free room and board provided by a friend or relative.
Example:
Londa’s house was flooded. She is staying with her brother until the house can be repaired. Her brother is not charging her to stay with him.
Action:
This is in-kind income. Follow program provisions to determine whether this income is counted or excluded.
l Free clothing or household goods provided by a community organization.
l Exchange of services, such as babysitting.
Example:
Rhonda has her neighbor, Glen, babysit her children when she needs to run errands. In exchange for his babysitting services, Rhonda dusts and vacuums his house.
Action:
This is in-kind income. Follow program provisions to determine whether this is counted or excluded as income.
l AmeriCorps benefits determined to be in-kind income are excluded for all programs.
Exclude all income determined to be in-kind income.
Count the value of in kind earnings as earned income if the client has a choice of receiving cash or in kind income.
Clients must make a good faith effort to convert ongoing in kind income into cash.
l If successful, the cash payment would be counted as earned income.
l If it is not possible to convert the income to cash, then it is excluded as in-kind income.
Example:
Leon picks strawberries for a local farmer. The farmer gives Leon free strawberries for his efforts.
Action:
Request that Leon attempt to be paid in cash for his strawberry picking rather than in strawberries. If the farmer cannot pay Leon, this is in-kind income and is excluded.
Example:
Marcy is an apartment caretaker. She receives free rent in exchange for her duties. She does not receive a paycheck with rent deducted. The apartment complex Marcy works for gives caretakers the choice of receiving a paycheck or free rent.
Action:
Marcy's wages are in-kind income. Count the value of Marcy's rent as earned income.