6220 Types of Countable Unearned Income
Assistance Payments (Food Assistance
Only) - Assistance payments from state, federal or federally-assisted
public assistance programs such as Supplemental Security Income (SSI),
or Temporary Assistance for Needy Families (TANF) (including the Work
Incentive payment), or other assistance payments based on need are
countable. Unearned income shall also include cash or another form
of assistance (excluding in-kind assistance) financed by state or
local funds as part of a program which provides assistance to cover
living expenses or other basic needs intended to promote the health
or well-being of recipients. Such assistance is considered to be unearned
income even if provided in the form of a vendor payment unless the
vendor payment is specifically exempt as countable income per 6410.
Annuities,
Pensions - Annuities, pensions, retirement, veterans, or
disability benefits, old-age, survivors, Social Security benefits,
or strike benefits are countable. The amount of a VA benefit which
has been augmented because of a dependent(s) (spouse and/or child)
shall be regarded as income for the dependent, not the veteran. SSA
benefits are considered the income of the person for whom they are
intended.
For food assistance, cash, and child care programs, VA aid and attendance
payments are countable unearned income. (Note: for food assistance,
a veteran getting aid and attendance would be considered disabled.
As such, they are entitled to deduct medical expenses that exceed
$35 per month including for maintaining an attendant, homemaker, home
health aide, housekeeper or adult care services due to age, infirmity
or illness. See 7223)
For food assistance, adoption support payments, and foster care payments
for children or adults who are considered as members of the food assistance
household are countable. Foster care payments for children or adults
who are considered boarders per 4220
shall not be included as income to the household caring for the foster
child or adult. Independent Living foster care payments are considered
the income of the foster child and are considered as income to the
child minus the portion of the payment the sponsor or community advisor
is allowed to keep as their fee (usually $50 or less). See 6410.
SSI (Food Assistance Only) - SSI benefits are
considered the income of the person for whom they are intended. See
6410 regarding retroactive SSI payments.
Child Support
Prior
To Assignment (TANF Only) - Support received in a calendar
month of eligibility prior to the date of assignment less the
amount exempted per 6410 shall be
counted as income in determining eligibility and the amount of
payment for that month only.
Assigned
Support Retained by CSS (TANF Only) - Assigned support
reported as retained by CSS in a month shall be treated as nonexempt
income in determining eligibility for each month. This includes
child support retained by the state when a child in the home is
in state custody.
The support amount shall be considered with other
income in the prospective month to determine if there is a deficit.
If there is no budgetary deficit, there is ineligibility for a
cash payment. If eligible, the support shall be excluded in determining
the amount of payment. The provision for budgeting assigned support
reported by CSS is not applicable when the support has terminated
due to the: (1) death of the person paying support; (2) death
or removal from the case of the individual for whom support is
being paid; or (3) termination of the support obligation in court.
Support
Retained by The Client (TANF Only) - CSS will be responsible
for recovering any court ordered assigned support which is received
directly and retained by the client in violation of the assignment.
EES staff will be responsible for recovering any voluntary assigned
support which is received and retained by the client in violation
of the assignment by establishing an overpayment and initiating
recovery. See 11124 (4). This applies
to TANF cases and their corresponding food assistance cases. The
only exceptions are those infrequent cases in which an individual
has been sanctioned for noncooperation. In such cases, EES shall
count as income the support anticipated to be received during
the month(s) in which the individual is sanctioned. EES is to
notify CSS of any known cases in which assigned support has been
inappropriately retained in order for CSS to take appropriate
recovery action. CSS shall notify EES of any noncooperation determinations
which may result in such instances. See 6410.
Current
Support (All Programs) - Current support and/or alimony
payments made directly to the household by nonhousehold members.
Support and alimony payments are considered the income of the
person for whom they are intended.
NOTE: For food assistance only, if the child for
whom the support is paid is in the home of the parent paying the
support, the child support income is not countable, since the
income of the parent paying the support has already been counted.
To count the child support as income would be double counting
income, thus it is not counted. The child support deduction, however,
is still allowed for the parent paying the support. Also see 7225.
Arrearage
Support (TANF, Food Assistance and Child Care) - Arrearage
support made directly to the household by non-household members.
This specifically includes regular arrearage payments received
with/without current child support.
If the arrearage payment meets the criteria of a lump sum payment
per 6410,
the arrearage would be exempt.
Worker's Compensation and Unemployment Insurance - The amount of Worker's Compensation payments awarded before attorney's fees are deducted is countable income. This is due to the fact that the portion that is an attorney's fee is considered a household expense and is not an allowable deduction from the income. Also refer to per 6220 (11). Refer to 6300.
The gross amount of unemployment compensation is countable
income, even if some of the payment has been intercepted for child
support purposes under the UI Intercept Program.
Certain Reimbursements - The amount by
which a reimbursement exceeds the actual incurred expense (when so
indicated by either the household or the provider) shall be counted
as unearned income. Reimbursements for normal living expenses are
also considered income. Refer to 6410.
Trust Fund Income - Monies which are withdrawn
or dividends which are or could be received by a household from trust
funds considered to be exempted resources under 5430
(1) or 5430 (9) shall be considered
income in the month received. Dividends which the household has the
option of either receiving as income or reinvesting in the trust are
to be considered income in the month they become available to the
household, unless otherwise exempt under 5430
(1) or 5430 (9). Income producing
costs shall be deducted from gross trust income to determine the countable
amount. See 6200.
Gambling Winnings - All winnings from such sources
as bingo, lotteries, or racetracks are treated as unearned income
in the month received. Gross amounts are counted even if taxes are
taken out prior to paying the household. A gambling payoff that cannot
be anticipated would not be counted for households in prospective
budgeting.
Vendor Income Not Exempt as Income - (See 6410 for exempt vender payments.)
Monies that are legally obligated
and otherwise payable to the household, but which are diverted
by the provider of the payment to a third party for a household
expense, shall be counted as income and not be exempted as a vendor
payment. The distinction is whether the person or organization
making the payment on behalf of the household is using funds that
otherwise would have to be payable to the household. If an employer,
agency, former spouse, or other person makes payments for household
expenses to a third party from funds that are not owed to the
household, these payments shall be excluded as vendor payments.
Protective
Public Assistance Payments - All or part of a public
assistance grant which would normally be provided in a money payment
to the household, but which is diverted to third parties or to
a protective payee for purposes such as managing a household's
expenses, shall be considered income to the household and not
excluded as a vendor payment except as provided in 6410.
Diverted
Court-Ordered Payments - Money deducted or diverted from
a court-ordered support or alimony payment (or other binding written
support or alimony agreement) to a third party for a household
expense, shall be considered income.
However, payments specified by the court order
or other legally binding agreement to go directly to the third
party rather than to the household, and support payments not required
by a court order or other legally binding agreement (including
payments in excess of the amount specified by a court order or
written agreement) which are paid to a third party rather than
the household, shall be considered income even if the household
agrees to the arrangement.
Excluding as a vendor payment specifically applies to military
retirement benefits where a court has ruled that a percentage
of the payment must go to the ex-spouse as part of the divorce
decree. Because this is part of the property settlement allowed
by law, the ex-spouse's payments are not counted as income to
the retiree since they are no longer legally obligated and otherwise
payable to the retiree. See section (a) above for countable vendor
payments.
Money Withdrawn from an Individual Development Account
(IDA) - Money withdrawn from an IDA and used for other than
a qualified purpose [see 6410] shall
be counted as unearned income in the month it is withdrawn.
Others - The following types of payments are
also countable:
See 6410 for exempt interest and 6410 for exempt monetary gifts.