P OVERTY L AW 1, A DJUNCT P ROFESSOR M ONICA B OGUCKI, MFIP-S I NCOME L ECTURE C OPYRIGHT 2013 M ONICA B OGUCKI.

POVERTY LAW 1, ADJUNCT PROFESSOR MONICA BOGUCKI, MFIP-S INCOME LECTURECOPYRIGHT 2013 MONICA BOGUCKI

IS THE INCOME INCLUDED OR EXCLUDED?

General Rule is that the income is counted unless it is specifically excluded.

THREE BASIC TYPES OF INCOME

⋆Earned Income, Minn. Stat. 256J.08, subd. 26⋆Unearned Income, Minn. Stat. 256J.08, subd.

86⋆In-kind income, Minn. Stat. 256J.08, subd. 49

INCOME EXCLUSIONS AND INCOME DEDUCTIONS

⋆End result is the same

WHAT IS PROSPECTIVE BUDGETING?⋆When a person applies for assistance,

you estimate his/her income for the next two months. Assistance is based on that estimate.

⋆Minn. Stat. 256J.33, subd. 2

WHAT IS RETROSPECTIVE BUDGETING?

⋆What you earn in one month affects your grant two months later.

⋆If someone earns $2,000 bonus from January.

⋆If the family’s grant is usually $437.00⋆The family will not get a MFIP grant in March. ⋆Minn. Stat. 256J.33 subd. 3

DEEMING OF INCOME, MINN. STAT. 256J.37, SUBD 1, SUBD 1B, SUBD. 2

⋆Count income of someone who is financially responsible but may not be living in the household

⋆Examples: Affidavit of support for immigration purposes

DEDUCTIONS FROM UNEARNED INCOME⋆Minn. Stat. 256J.37, subd. 9⋆You can deduct costs for securing unearned income

such as : legal fees to collect child support, medical fees to get disability income

⋆$500.00 in child support, minus $ 50.00 in legal costs = $450.00

⋆The $ 450.00 is a dollar for dollar decrease in the MFIP grant.

EARNED INCOME DISREGARDS

⋆How much money do recipients keep when they go to work?

⋆Approximately 39% disregard of the unit’s gross income

⋆See also DHS bulletin “Work Will Always Pay… With MFIP”http://www.dhs.state.mn.us/main/groups/publications/documents/pub/dhs16_145420.pdf

EXIT LEVEL FROM MFIP

⋆Exit level from MFIP is slightly above115% for family of three but varies for others Minn. Stat. 256J.37

CLIENT’S DUTY TO REPORT INCOME AND OTHER CHANGES

⋆The client must report any employment changes to his/her job counselor within 3 days. Minn. Stat. 256J.55 subd. 2

⋆Must report changes within 10 days Minn. Stat. 256J.30 subd. 9

⋆Household Report Forms, Recertification forms

⋆See State of Minnesota Department of Human Services website for forms-available in multiple languages.

ELLIE IS A FOSTER PARENT OF TWO CHILDREN. SHE RECEIVES $1200.00 PER MONTH FOR THE CARE OF THESE TWO FOSTER CHILDREN. ELLIE IS ALSO THE SINGLE PARENT OF TWO MINOR CHILDREN. SHE WANTS TO KNOW IF THE FOSTER PAYMENTS WILL REDUCE HER MFIP BENEFITS?

SALLIE STARTED WORKING FOR A COMPANY THAT PAYS HER FOR MILEAGE AND PARKING EXPENSES INCURRED AS PART OF HER WORK. SALLY IS WORRIED THIS WILL REDUCE HER MFIP BENEFITS. WILL THIS REDUCE HER MFIP BENEFITS?

SAM HAS A 10 YEAR-OLD-SON WHO IS RECEIVING SSI BENEFITS $ 710.00 PER MONTH. SAM ALSO HAS A 12-YEAR-OLD SON. SAM WILL BE APPLYING FOR MFIP BENEFITS. SAM WANTS TO KNOW HOW THE SSI BENEFITS WILL IMPACT HIS MFIP APPLICATION?

MOLLY IS ON MFIP BENEFITS. MOLLY NEEDED EXTRA MONEY THIS MONTH TO GO TO HER FATHER’S FUNERAL IN INDIANA. SHE SOLD HER STEREO SYSTEM FOR $500.00. SHE WANTS TO KNOW IF THIS WILL REDUCE HER MFIP BENEFITS.

AMERICORPS INCOME

Amy is a single parent of one child. She just finished college. She is participating in the AmeriCorps program. She will be teaching in an inner city high school in Minneapolis. She is worried about finances. She will get cash payments from AmeriCorps is $ 12,000 per year. Can she get MFIP benefits?

JENNY JUST RECEIVED A FAVORABLE DECISION IN A HOUSING DISCRIMINATION CASE. HER AWARD IS $20,000. SHE IS DEBATING ON WHETHER TO GET THIS IN CASH OR HAVE THE LANDLORD BUY HER A $ 20,000 MANUFACTURED HOME. WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF EACH OPTION? HOW WOULD THIS IMPACT HER GRANT?

JOHN AND BETSY FILED A RENT ESCROW ACTION AGAINST THEIR LANDLORD AND HAVE RECEIVED THE FOLLOWING DAMAGES FROM THE LANDLORD. THEY WANT TO KNOW HOW THIS WILL AFFECT THEIR MFIP GRANT.$100.00 PUNITIVE DAMAGES$500.00 RENT REBATE$500.00 MOVING EXPENSES- LANDLORD WILL PAY THE MOVING COMPANY DIRECTLY

LEGAL AVAILABILITY

⋆ Minn. Stat. 256J.21 subd. 1⋆What happens if the income is legally

unavailable?⋆What are some examples of legally

unavailable income?

SIGNIFICANT CHANGE

⋆In some circumstances county will issue supplemental payment if family experiences significant change in circumstances see Stat. 256J.34 subd. 4

⋆Limit of 2 per 12 month time period

EARNED INCOME TAX CREDIT

⋆Laquisha receives $ 200.00 per month in EITC

⋆How will this impact her MFIP grant?

MICHELLE’S PARENTS ARE WILLING TO LOAN HER $2500.00 TO HELP HER FINISH SCHOOL. MICHELLE IS WORRIED THIS WILL REDUCE HER MFIP GRANT. PLEASE ADVISE HER?

JAMES IS A SELF-EMPLOYED CARPENTER. HE EARNS $1000.00 PER MONTH IN GROSS INCOME. HE IS ENTITLED TO SOME DEDUCTIONS FOR EXPENSES. HE WANTS ADVICE FROM YOU ABOUT WHAT HE IS ABLE TO DEDUCT FROM HIS GROSS INCOME. WHAT ARE SOME QUESTIONS YOU WANT TO ASK JAMES? WHAT CAN HE DEDUCT? MINN. STAT. 256J.37 SUBD.5