Eligibility for child care services is based on annual income. Income is considered prospectively, based on the verification required in this section. As proof of income, a recipient shall provide either copies of the last two pay stubs or employer verification of current wages. A recipient who is self-employed shall provide a copy of the recipient's most recent income tax return. Depreciation is not an allowable expense and must be added to the recipient's net profit or loss. Income is considered as follows:

1. (1) If the child resides with both parents, consider the child's unearned income and the income of both parents;
2. (2) If the child resides with both parents but the parents are separated due to work or school, consider the child's unearned income and the income of both parents;
3. (3) If the child resides with one parent, consider the child's unearned income and the income of the parent with whom the child resides;
4. (4) If the child resides with one parent and that parent is cohabiting with another individual who is not the child's parent, consider the child's unearned income and the income of the parent;
5. (5) If a child resides with one parent who is cohabiting with another individual and the parent and the cohabiting individual have a child in common, consider the unearned income of the children and the income of the parent and the cohabiting individual;
6. (6) If the child resides with one parent and that parent is married to an individual who is not the child's parent, consider the child's unearned income and the income of both the parent and the parent's spouse;
7. (7) If the child resides with one parent a majority of the time but is residing with the second parent temporarily, consider the child's unearned income and the income of the second parent with whom the child has taken temporary residency;
8. (8) If the child resides with a guardian but custody is held by the Department of Social Services or a tribe, consider only the child's unearned income;
9. (9) If the child resides with a guardian and the guardian has custody and is married, consider the child's unearned income and the income of the guardian and the guardian's spouse;
10. (10) If the child resides with an adult who is married and exercises parental control over the child, consider the child's unearned income and the income of the adult exercising parental control and the spouse of the adult exercising parental control; and

11. (11) If the child's parent resides with one or both parents, a guardian, or an adult exercising parental control, consider the child's unearned income and the earned and unearned income of the child's parent.

    For the parent, guardian, or adult exercising parental control of the child, income includes child support, temporary assistance to needy families, social security income, rental or lease income, interest income, work study, tips, retirement, unemployment benefits, wages, veterans benefits, workers' compensation, and any other income, whether earned or unearned.

    A household with an adjusted income that exceeds the lesser of 209 percent of the federal poverty level or 85 percent of the state median income is ineligible for child care assistance.

    Cross-References: Federal poverty level, § 67:11:01:03; Definition of "eligible child," 42 U.S.C. § 9858n(4) (July 1, 2016).

Source: 18 SDR 112, effective January 9, 1992; 19 SDR 102, effective January 18, 1993; 21 SDR 86, effective November 6, 1994; 22 SDR 188, effective July 8, 1996; 24 SDR 30, effective September 14, 1997; 27 SDR 43, effective October 26, 2000; 37 SDR 236, effective June 28, 2011 ; 43 SDR 31, effective September 12, 2016 ; 45 SDR 159, effective July 1, 2019 ; 49 SDR 21, effective September 12, 2022 .

General Authority: SDCL 28-1-61 (1).

Law Implemented: SDCL 28-1-60 .

Prior versions effective: 2019-07-01, 2016-09-12, 2011-06-28.