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CalWORKs Policy - Department of Public Social Services

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For the upkeep and major repairs, the<br />

participant may choose to have the deduction:<br />

o Actual monthly amount; or<br />

o 15% <strong>of</strong> the gross monthly rental plus<br />

$4.17 a month.<br />

The difference is treated as net income to the<br />

AU.<br />

See CW 42-213.12 Good Faith Effort to Sell<br />

Property for more information.<br />

What action is taken when the participant has a<br />

home that is not used as the primary residence<br />

and the value is not over the property limit?<br />

If the property is within the property limit, the<br />

above computation continues to be applied.<br />

See CW 44-113 – Net Income for more<br />

information.<br />

What action is taken when the participant’s<br />

property is worth less than what is owed on it,<br />

but the participant is able to rent it out to cover<br />

the mortgage payment? How is the rent<br />

treated?<br />

The participant’s property has a zero or negative<br />

net value, so it is not counted against the property<br />

limit; therefore, there is no need for the participant<br />

to attempt to sell the property.<br />

The rent that the participant is receiving from this<br />

property would be treated as income.<br />

CW 44-113.2 - Income<br />

Disregards<br />

When the participant is receiving earnings,<br />

how much is disregarded for work expenses?<br />

LEADER determines the deduction/disregard to<br />

the gross earnings received from commissions,<br />

wages, salary including the value <strong>of</strong> any in-kind<br />

earned income as follows:<br />

$112 is disregarded, and<br />

50% from the remaining earned income is<br />

deducted.<br />

The remaining earned income is the family’s Net<br />

Non-exempt Income (NNI)

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