(a)  For the purpose of the rules in this Subchapter, the term "income unit" shall apply to persons who reside in the same household and who, according to North Carolina law, are responsible for the financial support of the individual whose eligibility for child care services is being determined.  Also for the purpose of determining eligibility for child care services, the terms "income unit" and "family" are used interchangeably in the rules in this Subchapter.

(b)  When the amount of income available to an individual is a condition of eligibility for child care services, it is necessary to determine the number of persons in the individual's income unit and the amount of the gross income available to the income unit.  The number of individuals in the income unit is referred to as the "income unit size" or "family size".  These terms are used interchangeably in the rules in this Subchapter.  The total amount of the income used to determine child care eligibility is referred to as the "gross income of the income unit" or "family income".  These terms are used interchangeably in the rules in this Subchapter.

(c)  Child care services may be provided to individuals other than those described in 10A NCAC 10 .0906 and in Rule .1004 of this Section provided the gross annual income of the individual's income unit does not exceed the state's maximum income eligibility limit (as defined in Rule .1003 of this Section) for the number of persons in that income unit.

(d)  The following are defined as separate income units for the purposes of determining eligibility and client fees for child care services:

(1)           Biological and adoptive parents and their minor children.  A step-parent shall be included in the income unit with his/her spouse when the children in need of care include their biological or adoptive child and step-siblings;

(2)           A minor parent and his or her children;

(3)           Each adult whether related or unrelated, other than spouses; and

(4)           Each child living with anyone other than their biological or adoptive parents.

(e)  Income to be considered when computing the gross income of the income unit is as follows:

(1)           Gross earned wages or salary (earnings received for work performed as an employee, including wages, salary, commissions, tips, piece-rate payments, and cash bonuses earned, before any deductions are made for taxes, bonds, pensions, union dues, etc.);

(2)           Adjusted gross income from taxable self-employment income;

(3)           Social Security benefits (includes Social Security pensions, survivors' benefits and permanent disability insurance payments);

(4)           Dividends, interest (on savings or bonds), income from estates or trusts, royalties, adjusted gross rental income on houses, stores or other property;

(5)           Pensions and annuities paid directly by an employer or union or through an insurance company;

(6)           Workers' compensation for injuries incurred at work.;

(7)           Unemployment insurance benefits;

(8)           Alimony (includes direct and indirect payments, such as rent and utility payments);

(9)           Child support, direct or indirect;

(10)         Pensions paid to veterans or survivors of deceased veterans;

(11)         On-the-Job Training (OJT) payments;

(12)         Job Training Partnership Act (JTPA) payments made to an adult;

(13)         AmeriCorps stipend (living allowance);

(14)         Armed Forces pay (only the amounts taxable, such as base pay);

(15)         Work release payments;

(16)         Cherokee Tribal Per Capita Income paid to adult family members;

(17)         Work-study payments, if the income is from a program not administered under Title IV of the Higher Education Act or the Bureau of Indian Affairs; and

(18)         Recurring cash contributions paid directly to the parent.

(f)  The following sources of income shall not be counted when computing the gross income of the income unit:

(1)           Work First Family Assistance;

(2)           Supplemental Security Income (SSI);

(3)           Lump sum payments (e.g. Social Security benefits, workers' compensation, alimony, veteran's benefits, HUD);

(4)           Foster care assistance payments;

(5)           Adoption Assistance payments;

(6)           Payments/trust funds under the Indian Claims Commission;

(7)           Payments from the Alaska Native Claims Settlement Act;

(8)           Income from sale of personal assets (stocks, bonds, house, car, and insurance);

(9)           Bank withdrawals;

(10)         Money borrowed;

(11)         Tax refunds;

(12)         Gifts or contributions;

(13)         Other in-kind contributions from non-legally responsible adults;

(14)         Emergency Assistance, Low Income Energy Assistance Program, Crisis Intervention Program, General Assistance, or CP&L Share Program payments;

(15)         Section VIII housing subsidy;

(16)         Capital gains;

(17)         Value of food stamp benefits allotted under the Food Stamp Act of 1977;

(18)         Free and reduced lunch program;

(19)         Any and all food subsidy programs;

(20)         Relocation/Acquisition Act payments;

(21)         Earnings of a dependent child under 18 years of age, unless a minor parent of a child needing child care;

(22)         Loans, grants, scholarships, money received through job training, Pell or Carl Perkins grants;

(23)         Home produce utilized for household consumption;

(24)         Volunteers in Service to America (VISTA) earnings;

(25)         Payments received as Earned Income Tax Credits or Dependent Care Credits;

(26)         All subsidized housing and housing allotments, including military housing allotments.  If rent is provided by an organization on a regular basis, it shall be counted as income;

(27)         Money received from an employer as an employee benefit for child care; and

(28)         Work-study payments, if the income is from the College Work-Study Program administered under Title IV of the Higher Education Act or the Bureau of Indian Affairs.  (Likewise, if the income from college work-study goes directly to the college, it is not counted as income.)


History Note:        Authority G.S. 143B‑153;

Eff. July 1, 1983;

Amended Eff. April 1, 2001; February 1, 1996; July 1, 1992; October 1, 1991.