California Department of Social Services - State Hearings
Division
Notes from the Training Bureau - January 26, 2000
| Item 00-01-02H CDSS ACL 99-82 -- October 3, 1999 (Synopsis): Treatment of Earned Income Credit (EIC) in CalWORKs |
Treatment of Earned Income Credit (EIC) in CalWORKs
Counties are to use CalWORKs regulations to define income and property. This is true notwithstanding MPP §42-203.2. which says that personal property is defined in accordance with Food Stamp regulations. Per CDSS policy, ACL 99-82 should be followed and not MPP §42-203.2.
Once personal property has been defined using CalWORKs regulations, counties are to follow Food Stamp regulations to value the property.
MPP §44-111.61(l) exempts EIC payments from consideration as income in the month it is received. Per MPP §42-213.518, an EIC payment is exempt property in the month following the month of receipt.
If an EIC payment is retained after the first two months, counties are to apply Food Stamp regulations to determine how to treat an EIC. MPP §63-501.3(l)(2) states: "Any EIC payment received by any household member shall be excluded for 12 months, provided the household was participating in the Food Stamp program at the time the EIC was received and provided the household participated continuously during that 12 month period."
CDSS has determined that this section also applies to CalWORKs participants who were not Food Stamp participants but received CalWORKs during a continuous 12-month period. That is, if a member of a CalWORKs assistance unit (AU) receives an EIC while on CalWORKs but not receiving Food Stamps, the EIC is excluded as long as the AU receives CalWORKs for 12 continuous months following receipt of the EIC.