In-kind Income
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This section includes information about in-kind income where the participant works in lieu of payment for something else.
Policy
In-kind income is considered earned income and is the value of work performed by the participant in exchange for room, board, or other needs.
NOTE No monetary payment is made on behalf of the budgetary unit.
For NA, in-kind income is not countable.
For CA, in-kind income is countable.
In-kind income includes, and is not limited to, work in exchange for one or more of the following:
●Clothing
●Housing
NOTE When a CA participant works in return for housing, the budgetary unit is allowed the A1 CA Payment Standard.
●Meals
●Produce from a garden
NOTE An NA participant working in exchange for an NA expense, the budgetary unit is not allowed to receive the corresponding expense, deduction, or allowance. (See Expenses for a list of NA expenses.)
Countable income is used to determine an income budget. (See Income Budgeting to see how FAA determines the income budget.) FAA needs to know about income that is both countable and not countable to determine whether a budgetary unit’s income is exceeding their expenses. (See Income Eligibility for more information about how FAA uses countable and not countable income.)
Procedures
When both monetary payment and noncash items are provided, the noncash items may or may not be considered in-kind income. Investigate with the participant and document clearly.
When the noncash item is not considered in-kind income, see any of the following for additional noncash income types:
Verification
System interface and the case file(g) must be reviewed before verification is requested. No additional verification is needed when AZTECS interface or HEAplus hubs have verified the information.
The participant has the primary responsibility for providing verification. (See Participant Responsibilities – Providing Verification for additional policy.)
For NA, all of the following income is required to be verified before eligibility is determined:
●Reported on a new application, during the interview of a new application, or changes reported before the eligibility determination of a new application.
●Changes after an eligibility determination of a new application (e.g., a renewal application, mid approval contact, etc.) and any of the following apply:
The source of the income has changed.
The income is questionable(g) or unclear(g).
The reported income amount has changed by $51 or more.
The previous verification in the case file is more than 59 calendar days old.
For CA, all income is required to be verified before determining eligibility.
The dollar value of the item being exchanged with the provider of the in-kind income has to be verified before determining eligibility. The provider may be, and is not limited to, any of the following people who provide an item or value in exchange for services:
●A landlord who is providing all or a portion of rent or utilities in exchange for services.
●A store owner who provides goods such as groceries, clothes, or furniture in exchange for services.
●A person who provides personal items in exchange for services.
●A person who trades a car, gasoline, building material, or tools in exchange for services.
Examples of verification that can be used for in-kind income include, and are not limited to, any of the following:
●Letter from the provider.
●A collateral contact with the provider.
NOTE Collateral contact is not used when contacting the employer would jeopardize the participant's employment or when the employer does not accept telephone verification.
●Participant statement verification when one of the following occur:
Obtaining documented or collateral contact verification may cause harm or undue hardship(g) for the participant.
When all of the following occur:
●Other attempts to obtain the verification have failed. This includes documented and collateral contact verification.
●The participant has requested assistance from FAA.
●The worker has evaluated the request for assistance and cannot obtain the verification from another acceptable source.
●The participant statement is not questionable(g).
AZTECS Keying Procedures
Key in-kind income on EAIC using the IK Earned Income Type Code.
Document the case file(g) thoroughly to support keyed codes, amounts, and frequencies. See the AZTECS Data Entry Guide for instructions on keying the AZTECS income screens.
NOTE Documentation must support determinations of eligibility and benefit level. Document in sufficient detail to ensure that any reviewer can assess whether the determination is reasonable and accurate. Include specific information regarding the reason the income is determined to be normal. (See Budgeting Income Documentation Requirements for additional information.)
Legal Authorities
AAC R6-12-501(b)(1)
A.R.S 46-292-P01
7 CFR 273.9(c)(1)
7 U.S.C. 2014(d)
last revised 10/02/2023