AwardYear: 1996-1997 ChapterNumber: 4 ChapterTitle: Discretionary Verification Section: Verifying Untaxed Income and Benefits PageNumber: Welfare Benefits Generally, "welfare benefits" include the untaxed income that individuals receive from federal or state public assistance programs, such as Supplemental Security Income (SSI) and Aid to Families with Dependent Children (AFDC). Receipt of these benefits can be verified by contacting the paying offices or through documentation available from the applicant. Worker's Compensation These benefits can be verified through the applicant's employer or with documentation available from the applicant. Check to see if the applicant's workers' compensation benefits have covered medical expenses claimed by the applicant. Veterans Noneducational Benefits These benefits result from programs such as Death Pension or Dependency and Indemnity Compensation (DIC) and can be verified through the Department of Veterans' Affairs or through documentation available from the applicant. Housing, Food, and Other Living Allowances This category applies only to allowances paid as job compensation-- for example, to members of the military or clergy. Rent subsidies for low-income housing should not be counted as income. In verifying this amount, you should include cash payments and assess the cash value of the benefits. Cash Support Any cash support the applicant receives from a friend or relative (other than the parent, if the applicant is dependent) must be reported as untaxed income. Cash support includes payments made on the applicant's behalf. For example, if the applicant's uncle pays the applicant's rent or utility bill, the applicant must report that amount as untaxed income. Untaxed Portion of Pensions This amount can be verified from IRS Form 1040, line 15a minus 15b and 16a minus 16b; or 1040a, line 10a minus 10b and line 11a minus 11b (excluding rollovers). Payments to Tax-Deferred Pension and Savings Plan These payments include untaxed portions of 401(k) and 403(b) plans and can be paid directly or withheld. Amounts can be verified with W-2 forms or a signed statement from the applicant. Tax-Exempt Interest Income This amount can be verified from IRS Form 1040 or 1040a, line 8b. Other Untaxed Income and Benefits This would include benefits such as Black Lung Benefits, Refugee Assistance, and untaxed portions of Railroad Retirement Benefits. To verify these income and benefit amounts, you may accept a statement, signed by the applicant, detailing the sources and the amounts received. (If the applicant completed a verification worksheet, he or she may have included this statement.) |