Countable Income (May 2006)
Question: "I received this question from a contracting official caseworker:
I have a K-Tap case (IV-D#XXXXXXX) where the NCP is drawing Transitional Assistance from Illinois. I contacted the Alexander County General Assistance and the lady told me that this “transitional assistance” is welfare for single males. He draws this check because he has sugar diabetes. I’ve never had this scenario and I wasn’t sure what I do, if I still establish child support or not and if so, what do I base his income at? He doesn’t work and doesn’t draw any disability, only this $100.00/mo from the State of Illinois.
Would the transitional assistance be treated like KTAP benefits (that “ncp’s or cp’s who receive k-tap are considered voluntarily unemployed or underemployed. Therefore, previous income or minimum wage, whichever is higher, is imputed to them when the support obligation is determined.”) for the purpose of establishing an obligation amount?"
Answer: Yes you are correct. According to Kentucky Revised Statues (KRS) 403.212, “Income is imputed to a parent when the parent is voluntarily unemployed or underemployed. “Imputed” means the income is attributed or charged to the parent based on a determination of potential income. Potential income must be determined based on employment potential and probable earnings level based on recent work history, occupational qualifications, and prevailing job opportunities and earnings levels in the community.
A court may find a parent to be voluntarily unemployed or underemployed without finding that the parent intended to avoid or reduce the child support obligation. Voluntarily unemployed means the parent is not working by choice. In other words, he or she has quit work. Voluntarily unemployed may also mean the parent has chosen never to work. Voluntarily underemployed means the parent is working for less money by choice. A parent is considered underemployed if the parent’s current wages are less than previous wages.
Previous income or minimum wage, whichever is higher, is used in determining the support obligation when the parent is voluntarily unemployed or underemployed.
NOTE: Minimum wage is multiplied times 40 hours to get a weekly income when minimum wage is used to determine income.”
It is our belief that the transitional assistance received in Illinois would be treated like K-TAP. According to the CS-71 Procedural Instructions, “Noncustodial parents and custodial parents who receive K-TAP are considered voluntarily unemployed or underemployed. Therefore, previous income or minimum wage, whichever is higher, is imputed to them when the support obligation is determined."