Gross income minus deductions for certain expenses.
Advance Earned Income Tax Credit (AEITC)
A program that allows individuals with at least one qualifying child to incrementally receive the Earned Income Tax Credit in their paycheck throughout the year.
B
Benefits Planner
Someone who can help you understand or apply for benefit programs when you become disabled or turn 65. Their goal is to help you avoid financial complications while developing a sustainable plan for the future. To find a benefits planner in Minnesota, call the Work Incentives Connection at 800-976-6728.
C
Community Work Incentives Coordinator (CWIC)
The federal government pays benefits planners in communities around the country to help people think ahead about work incentives and benefits issues. CWIC'S are benefits planners who are trained by the Social Security Administration to assist beneficiaries with programs including Supplemental Security Income (SSI), and Social Security Disability Insurance (SSDI) in addition to other related programs.
E
Earned Income (EI)
Salaries, wages, tips, professional fees and other amounts received as pay for physical or mental work actually performed. Funds received from any other source are not included. (Contrast unearned income.)
F
Federal Poverty Level (FPL)
A table of income amounts used to determine financial eligibility for federal and state programs. Each year, the Department of Health and Human Services (HHS) issues the Federal Poverty Guidelines in the Federal Register. The Federal Poverty Level for one person is $10,400. For each additional person, add $3,480. For Medi-Cal programs, these figures go into effect in March or April of each year.
Foreign Income
Income received for services performed in a foreign county by an individual residing in that country.
I
Investment Income
Dividends, capital gains net income, certain rental and royalty income, net passive activity income, and taxable and tax-exempt interest.
P
Permanently and Totally Disabled
Unable to engage in any Substantial Gainful Activity (SGA) due to any medically determinable physical or mental impairment(s) which can be expected to result in death or which has lasted or can be expected to last for a continuous period of at least 12 months.
Q
Qualifying Child
An IRS classification that may allow a taxpayer to claim the EITC and certain other tax credits. In general, to be a taxpayer’s qualifying child, a person must satisfy four tests:
Relationship — the taxpayer’s child or stepchild (whether by blood or adoption), foster child, sibling or stepsibling, or a descendant of one of these.
Residence — has the same principal residence as the taxpayer for more than half the tax year. Exceptions apply, in certain cases, for children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year.
Age — must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year, or be permanently and totally disabled at any time during the year.
Support — did not provide more than one-half of his/her own support for the year.
S
Subsidized Employment (Public & Private)
Employment in which the CalWORKs program partially or fully reimburses a Welfare-to-Work participant’s employer for wages and/or training.
U
Unearned Income (UI)
Funds received from sources for which no paid work activity was performed. (Examples: Disability benefits such as SSDI, SSI, short term disability insurance, and long term disability insurance; VA benefits; Worker's Compensation; income from a trust or investment; dividends, profits, or funds received from any source other than work.)
Unsubsidized Employment
Employment that is not reimbursed to an employer by the CalWORKs Program.
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