509 VERIFICATION SR 06-12, 10/06 (FAM-A)

Use third-party documentation to establish the accuracy of statements made by the individual requesting assistance. If the individual requesting assistance refuses or fails to verify income, deny or terminate assistance for the entire household.

Countable Income

Verify countable income at initial eligibility determination, whenever a change is reported or discovered, and anytime conflicting information is discovered. In the TANF/UP program, always verify countable income at subsequent redeterminations.

Acceptable verification includes documentation that indicates an income’s type, amount, frequency, and source. Acceptable verification also includes cost of doing business, if applicable.

Exceptions:

§   In the Healthy Kids-Silver and Children Up to Age 19 Programs (HKG-300, HKG-185, HKG-CH), a verbal declaration satisfies verification requirements for child support income received.

§   If a recipient is reporting changes in earned income during the period prior to a regularly scheduled redetermination, verification requirements are different. See PART 151, CHANGES THAT INCREASE BENEFITS, or PART 153, CHANGES THAT DECREASE BENEFITS.

Excluded Income

Verify excluded income at initial eligibility determination and whenever claimed or discovered.

If an excluded income (such as an SSI Representative Payee fee) is entered on New HEIGHTS, the income also needs to be verified at redeterminations and whenever a change occurs.

Acceptable verification documents that the income is of a type that is excluded.

Self-Employment

Verify self-employment income to establish the amount and frequency of income and the cost of doing business. Verify that resources, such as checking accounts, are for business only before excluding.

Example

A woman sells Avon products. When she applies for assistance, she supplies an IRS Form 1099 from the previous year, but claims it is not representative of her current income. She produces business books which clearly show that her income, less her cost of doing business, is currently lower than the IRS Form 1099 would suggest. Therefore, her average self-employment income can be computed at the lower amount.

See Self-Employment for a list of allowable business expenses.

Lump Sum Income

Verify the amount of the lump sum income, any changes in circumstances affecting the standard of need, expenses directly related to the lump sum, and that the lump sum has been spent on approved medical expenses or life-threatening circumstances.