6400 - Exempt Income

 

6410 Income Exempt as Income Only and Income Exempt as Income and a Resource - "See Policy Memo #05-03-01 re:Exclusion of Combat Pay

 

Income from the following sources is exempt as income only in the month received or, where indicated, also exempt as a resource in the following months.
 

  1. Achieving a Better Life Experience (ABLE) Act Accounts (All Programs) – Any amount (including earnings thereon) in the ABLE account or distributions from the ABLE account are exempt as income in the month received and as a resource in the following months.

  2. Adoption Support, Foster Care and Permanent Custodianship Subsidy

  1. TANF and CC - Adoption Support, Permanent Custodianship Subsidy and Foster Care payments (including Independent Living payments) are exempt as income in the month received and as a resource in the following months. Also see 2210.
     
  2. Food Assistance - Foster care and Permanent Custodianship Subsidy payments are exempt if the child(ren) are not included in the household. See 4211 (1). Adoption support payments are not exempt.
  1. Agent Orange (All Programs) - Agent Orange settlement payments made pursuant to P.L. 101-201 are exempt as income in the month received and as a resource in the following months.
     
  2. Alaska Native Claims (All Programs) - Distributions from Native Corporations formed pursuant to the Alaska Native Settlement Act including cash, stock, partnership interest, land or interest in land, and interest in settlement trust are exempt as income in the month received and as a resource in the following months.
     
  3. Aleut Income (All Programs) - Payments granted to certain eligible Aleuts under Title II of P.L.100-383 (enacted 8/10/88) is exempt as income in the month received and as a resource in the following months.
     

  4. AmeriCorps (All Programs) - Any payments provided through AmeriCorps are exempt as income in the month received and as a resource in the following months.

    Also see below for special rules regarding the treatment of VISTA Income (an AmeriCorps Program).


  5. Assistance Payments -


    1. All Programs Except Food Assistance - Retroactive assistance payments are exempt as income in the month paid and as a resource in only the following month.

    2. Food Assistance - Cash assistance payments shall be counted as income when they are received in the month for which they are intended and they are authorized in time to affect the corresponding issuance month considering appropriate timely notice requirements. Retroactive cash assistance payments shall not be counted as income for food assistance purposes.

      If the amount of the initial cash payment cannot be reasonably anticipated at the time of the food assistance eligibility determination, the possible cash payment shall be disregarded and the subsequent approval of the cash payment shall then be handled as a change in circumstances.

  6. Census Earned Income (All Programs) - The earned income of temporary census employees shall be exempt.

  7.  Charitable Donations (All Programs) - Any cash or in-kind donation based on need not to exceed $300 in any quarter starting in January, April, July or October which are received from one or more public or private nonprofit charitable organizations are exempt as income in the month received and as a resource in the following months. Amounts in excess of $300 shall be considered as countable unearned income.

  8. Child Care Payments (All Programs) - Child Care payments made to persons other than a child care provider are exempt as income in the month received.


  9. Child Support (All Programs)


    Support received on or after the effective date of assignment to DCF is exempt as income in the month received except when:

    1. The current support reported by CSS and treated as nonexempt income results in TANF ineligibility (see 6220);

    2. A person has been sanctioned for noncooperation. In such instances, assigned support retained by a person during the sanction period for noncooperation shall be counted as income.

    3. An arrearage payment that is not retained by DCF and is forwarded to the client with the exception of prospective support received in the application processing month. (see 2164 and 7124.2) This does not include prospective support received after TANF approval in the application processing month.

      NOTE: This exemption does not apply to arrearage payments paid for a child whose current support order has ended. These payments are not considered child support payments and are considered the income of the person receiving the payment.

  10. Children's Earnings - The earned income for a child is exempt as income in the month received in the following situations:

    1. For TANF, this exemption applies to children under age 18 or under age 19 if the child is working toward attainment of a high school diploma or its equivalent. See 2210.

    2. For Food Assistance, this exemption applies to children under age 18 if the child is working toward attainment of a high school diploma or its equivalent. See 2210.

    3. For Child Care, the earnings of any child under age 18 (or age 19 if the child is working toward the attainment of a high school diploma or its equivalent) are exempt unless the child is legally responsible for another person in the nuclear family.

    4. If the child's earnings or amount of work performed cannot be differentiated from that of other household members (Example: migrant farm workers), the total earnings shall be prorated equally among the working members of the household and the child's pro rata share excluded if they meet the exclusions listed above.

    5. Once a student's income loses its exempt status per above, that earned income shall be countable effective with the income month following the month in which the income loses its exempt status. For example, if a student receiving food assistance turns 18 on September 5th, the student's earned income would be counted prospectively effective for October, since October would be the first income month in which the student was 18 years or older at the beginning of the month.


    This exclusion does not apply to emancipated minors or to unemancipated minors determined to act in own behalf per 2112 (2). For TANF and Food Assistance, exclusions continue to apply during temporary vacation breaks, provided the child’s enrollment will resume following the break.


  11. Combat Pay (All Programs) - Additional pay received by military personnel as a result of deployment to a combat zone is exempt. Refer to Policy Memo 05-03-01 for details on determining countable income for households with a member in a combat zone. Also refer to Combat Zones Approved for Tax Benefits for a current list of combat zones.


  1. Crime Victims Fund (All Programs) - Payments made pursuant to the Crime Victims Fund (Public Law 103-322), as amended are exempt as income in the month received.
     
  2. Death Benefits -

    1. All Programs - Death benefits (OASDI, VA, RR, or other burial benefits) when used toward the cost of burial are exempt as income for the month received and as a resource in the following months.

    2. Payments occasioned by the death of another person to the extent that the payments have been expended or committed to be expended for purposes of the deceased persons last illness and/or burial. Such payments include, but are not limited to, proceeds from a life insurance or burial insurance policy, gifts, and inheritances.

    3. For the purposes of this provision, a person's last illness is defined as the illness which resulted in the person's death. Death resulting from injuries would not be considered in this definition. Medical expenses that can be reasonably attributed to the persons last illness shall be excluded in determining the amount of payment that is considered to be available. Documentation is required.

  3. Disaster Payments (All Programs) - Federal major disaster and emergency assistance and comparable disaster assistance provided by state or local government or by disaster assistance organizations in conjunction with a presidentially declared disaster are exempt as income in the month received and as a resource in the following months.

    This includes disaster unemployment assistance to an individual as a result of a major disaster. Individuals cannot be eligible for any other unemployment compensation and also receive disaster unemployment benefits. Payments are limited to 26 weeks. EES Administration will notify the field if such disaster unemployment assistance is paid in Kansas due to a major disaster.
     
  4. Donated Foods (All Programs) - The value of the U.S. Department of Agriculture donated foods are exempt as income in the month received and as a resource in the following months.
     

  5. Earned Income Tax Credits (All Programs) - Earned income tax credits received as a lump sum refund is exempt as income in the month received and as a resource in the following twelve months.
     
  6. Educational Income (All Programs) - Any bona fide grant, scholarship, loan or other money payment for educational purposes from any source including, but not limited to, PELL grants, SEOGs, GLSs, Carl D. Perkins Vocational ACT grants, college work study, grants or loans from civic organizations, Veterans Educational Income and private student loans from family or nonfamily members is exempt as income in the month received and as a resource in the following months.

    NOTE: Veteran's Educational income includes: GI Bill; vocational rehabilitation payments for service related disabilities (Chapter 31); and educational payments to children (18-26) and spouses of Veterans with a service connected death or 100% disability. The portion of the GI Bill payment that is the monthly housing allowance (MHA), is NOT exempt under this provision. See 6220 (11).

    Interest on Kansas Investments Developing Scholars (K.I.D.S.) accounts is exempt as long as the account is maintained. Withdrawals from the Participant Account and from the Match Account are also exempt.

    Monies which are received as monthly living benefits from stipends or special programs such as Social Security to survivors based on educational participation, or to Native Americans through Tribal sources or Bureau of Indian Affairs shall not be exempt under this provision as they are not considered grants, loans or scholarships.
     

  7. Energy Assistance (All Programs) - Payments or allowances made under some federal laws for the purpose of providing energy assistance are exempt from consideration as income in the month received. An example of such federal program is the Department of Health and Human Services' Low Income Energy Assistance Program (LIEAP).

    Other home energy assistance furnished by a federal or state regulated entity whose revenues are primarily derived on a rate-of-return basis, by a private nonprofit organization, by a supplier of home heating oil or gas, or by a municipal utility company which provides home energy, if the assistance provided is based on need, is exempt as income in the month received.

    For food assistance, payments made to the household under state or local laws for the purpose of energy assistance are not excluded. (There are no State programs in existence at this time.)
     
  8. Family Subsidy (All Programs) - Family subsidy payments provided through the Mental Health and Developmental Disabilities Commission or Family Support payments provided through the Prevention and Protection Services Commission are exempt as income in the month received and as a resource in the following months.

  9. Filipino Veterans Equity Compensation Fund (All Programs) – Payments from the Filipino Veterans Equity Compensation Fund are exempt as income and as a resource. This fund was created by the American Recovery and Reinvestment Act (ARRA) of 2009 for certain veterans and the spouses of veterans who served in the military of the Government of the Commonwealth of the Philippines during World War II. The compensation fund offers one-time payments of up to $15,000 to eligible persons.
     
  10. Food Assistance (All Programs) - The value of the benefits issued under the current Food and Nutrition Act of 2008 are exempt as income in the month received and as a resource in the following months.
     

  11. Foster Care (Food Assistance) - See 4220.
     

  12. Foster Grandparents
     

    1. All Programs Except Food Assistance - Any payment provided to volunteers serving as foster grandparents is exempt as income in the month received and as a resource in the following months.
       

    2. Food Assistance - The payment referenced in (a) above is only exempt as income in the month received.
       

  13. Gifts (All Programs) - Gifts $50 or under (per case/per month) of irregular, occasional or unpredictable monetary gifts are exempt as income in the month received. Regular monetary gifts of any amount are countable. Gifts of more than $50 are countable in full.

    Examples:

    1) Ann received $40 for her birthday. This payment is exempt.

    2) Bill receives $100 a month from his mother to help pay his rent. It is not a loan, it is a gift. The full $100 is countable since it is in excess of $50.

    Note: Establishment-specific gift cards (such as Walmart or Olive Garden) shall be exempt as income. However, credit card company gift cards (such as Visa or MasterCard that can be spent as cash) that are provided regularly and can be reasonably anticipated shall be counted as income.


  14. Health Profession Opportunity Grants (HPOG) (All Programs) - The Patient Protection and Affordable Care Act (ACA) amended the Social Security Act to provide demonstration project authority to address health professions and workforce needs. HPOG was awarded to 32 entities, including State agencies, workforce investment boards, community based organization and institutions of higher education. Section 5507 of ACA specifically excludes any aid, services, or incentives provided to an eligible beneficiary under the HPOG from being counted as income in determining eligibility and benefits for any means tested program. In Kansas, the Kansas Health Profession Opportunity Project (KHPOP) meets this criteria, and any payments received from the program are exempt as income.
     

  15. Holocaust Survivors (All Programs) - Reparation payments made to Holocaust survivors are exempt as income in the month received.
     

  16. Hostile Fire Pay (All Programs) - Hostile fire pay (also known as combat pay)received while in active military service is exempt as income in the month received.

    See Policy Memo 05-03-01 for more detailed information, especially the applicability of this exemption on food assistance cases.
     

  17. Housing Assistance (All Programs) - Housing assistance from federal housing programs including negative rent payments made to tenants of subsidized housing under HUD regulations is exempt as income in the month received and as a resource in the follow months.
     
  18. Independent Living Foster Care Payments (Food Assistance) - The portion of independent living payments, that the sponsor or community advisor is allowed to keep (usually $50 or less), is exempt as income for the independent living foster care child. The remainder is countable income for the foster child. See 6220 (2) .
     
  19. Indian Monies

    1. $2,000 Per Year (All Programs) - Up to $2,000 per calendar year of income received by individual Indians, which is derived from leases or other uses of individually-owned trusts or restricted lands pursuant to P. L 103-66 and P. L. 97-458 is exempt as income in the month received. For purposes of this provision, the exclusion of income shall be applied only to months for which an eligibility determination is being made. For income which is received monthly or more frequently, the exclusion shall be applied beginning with the first month of eligibility determination until the $2,000 limit is attained. For intermittent income situations, the income up to $2,000 shall be subtracted from total intermittent income for the appropriate period with the remainder prorated to determine the countable monthly amount. These payments are exempt as income in the month received and as a resource in the following months for the Food Assistance Program.

    2. Secretary of Interior (All Programs) - Any funds for an Indian tribe which are distributed or held in trust by the Secretary of the Interior (including Indian judgment funds), including interest and investment income accrued on money held in trust and initial purchases made with any funds distributed are exempt as income in the month received and as a resource in the following months.

      Contact with the Bureau of Indian Affairs will be necessary to verify that the funds are exempted or are another type of benefits which must be counted as income.

    3. Aroostook Band (All Programs Except Food Assistance) - Payments granted to the Aroostook Band of Micmac Indians under Public Law 102-171 are exempt as income in the month received and as a resource in the following months.

    4. Assiniboine Tribe (Food Assistance) - Payments awarded to the members of the Assiniboine Tribe of the Fort Belknap Indian Community or the Assiniboine Tribe of the Fort Peck Indian Reservation, received pursuant to P.L. 98-124 (enacted 10-83) are exempt as income in the month received and as a resource in the following months.

    5. Chippewa Tribe (Food Assistance) - Payments awarded to the members of the Red Lake Band of Chippewa Indians, received pursuant to P.L. 98-124 (enacted 10-83)are exempt as income in the month received and as a resource in the following months.

    6. Navajo and Hopi (Food Assistance) - Payments of relocation assistance to members of the Navajo and Hopi Tribes under P.L. 93-531 are exempt as income in the month received and as a resource in the following months.

    7. Ottawa Tribe (Food Assistance) - Payments received from the disposition of funds to the Grand River Band of Ottawa Indians (P.L. 94-540) are exempt as income in the month received and as a resource in the following months.

    8. Passamaquoddy Tribe (Food Assistance) - Payments to the Passamaquoddy Tribe and the Penobscot Nation or any of their members received pursuant to the Maine Indian Claims Settlement Act of 1980 (enacted 10-83) are exempt as income in the month received and as a resource in the following months.

    9. Yakima Nation and Apache Tribe (Food Assistance) - Payments by the Indian Claims Commission to the Confederated Tribes and Bands of the Yakima Indian Nation or the Apache Tribe of the Mescalero Reservation (P.L. 95-433) are exempt as income in the month received and as a resource in the following months.

  20. Individual Development Accounts (All Programs) - The interest on an allowable individual development account (IDA), including authorized matching contributions and accrued interest, is exempt as income as long as the account is maintained. For Working Healthy, income deposited into an IDA is also exempt in the month deposited. IDAs are exempt resources for all programs. An allowable IDA meets the following guidelines:
     
    1. It is established by or on behalf of a TANF recipient or by or on behalf of an individual participating in the Assets for Independence Demonstration Program (AFIA) and is used for a qualified purpose.
       

    2. qualified purpose is one or more of the following:
       

      1. post-secondary education expenses for college or vocational-technical school. Learning Quest or other 529 accounts are not considered IDAs;
           

      2. first home purchase (must not have owned a home within three years of acquisition); or
         

      3. business capitalization (business plan must be approved by financial institution or non-profit loan fund).

      NOTE: Any funds withdrawn from an IDA and used for any purpose other than one of those listed above shall count as unearned income in the month withdrawn. 

    3. The IDA must be a trust funded through periodic contributions by the establishing individual and may be matched by or through a qualified entity for a qualified purpose.

    4. A qualified entity to match IDA funds for a TANF recipient is either a not-for-profit organization described in section 501(c)(3) of the IRS code of 1986 and exempt from taxation under section 501(a) or a state or local government agency acting in cooperation with a 501(c)(3) organization. For AFIA participants, matching contributions are made by the federal government through a grantee.

    5. TANF and AFIA recipients may only contribute to IDAs with income derived from earnings. Note: The earnings of an adult placed in an IDA are counted as earned income in the month earned.

    6. Parents may establish IDAs for their children as well as for themselves. Children may also contribute their earnings to accounts established by or for them.


  21. In-kind Income (All Programs) - In-kind benefits are exempt as income in the month received.

      
  22. Interest to a Burial Fund (All Programs) - Interest credited to an exempted burial fund or to a prepaid burial space contract account is exempt as income in the month received and as a resource in the following months. See 5430 (9).
     
  23. Japanese Aliens (Non-citizens) (All Programs) - Payments granted to certain United States citizens of Japanese ancestry and resident Japanese non-citizens under Title I of P.L. 100-383 (enacted 8-10-88) are exempt as income in the month received and as a resource in the following months.
     
  24. Kinship Care payments (Food Assistance) - See 4220.
     
  25. Loans (All Programs) - All loans, including loans from private individuals as well as commercial institutions, including deferred educational loans, shall be exempted from household income.
     

    Monies received from reverse mortgages are treated as loans, even if payments are regular and predictable.
     

    When verifying that income is exempt as a loan, a legally binding agreement is not required. A simple statement signed by both parties which indicates that the payment is a loan and must be repaid shall be sufficient verification. However, if the household receives payments on a recurrent or regular basis from the same source but claims the payments are loans, the provider of the loans may be required to sign a statement which indicates that repayments are being made or that payments will be made in accordance with an established repayment schedule.
     

  26. Lump Sums (All Programs) - Lump sum payments are exempt as income in the month received. A lump sum payment is defined as a nonrecurring one time payment which, if received regularly, would be non-exempt. Classification as a lump sum is dependent on its unpredictability either in amount or time of receipt which prohibits consideration as intermittent income. Lump sum payments may be from (but not limited to) the following sources:

    1. Income tax refunds, rebates, or credits when paid as a lump sum benefit.
      Tax refunds are exempt as a resource in the following twelve months.

    2. Other payments, such as retroactive cash assistance, unemployment compensation, Social Security, SSI, or railroad retirement benefits.

      NOTE: Retroactive SSI benefits in an amount that equals or exceeds 12 times the federal benefit rate to an eligible SSI individual are paid in installments. The retroactive payments are paid in no more than 3 installments and are made at 6-month intervals. Since these installments replace what would have been paid a single lump sum payment,  installment payments for retroactive SSI benefits are exempt as income. If SSA requires that the SSI lump sum be placed in a separate account, the entire amount of the lump sum shall be exempt, including any portion of the lump sum that is for the current income month.

    3. Lump sum insurance benefit, including proceeds from crop insurance.

    4. Refunds of security deposits on rental properties or utilities.

    5. Bonus or severance pay paid in a lump sum after employment has been terminated.

    6. Retroactive child support rebate payments including CSS checks (URA) received by the client while the TANF case is in open status.

    7. VA pension benefit adjustments paid in a lump sum.

    8. Lump sum child support arrearage payments. (If an arrearage is owed, child support payments paid in excess of the current support obligation are considered an arrearage.)

    9. Excess insurance payments received through the Medicaid Program.

    10. The one-time $250 Social Security, SSI, Railroad Retirement and Veteran's payments made as a result of the American Recovery and Reinvestment Act of 2009 (economic stimulus legislation). The legislation exempts these payments as income and also exempts them as a resource for the month of receipt and the following nine months.

    11. The $1,000 payment received in lieu of TANF benefits under the Diversion Payment Program Option described in 1118. The payment is considered exempt as income and as a resource only in the month received.

    12. Gate money received by persons when they leave prison.

  27. Mineral Rights and Oil Royalties - Mandatory deduction of severance taxes from mineral rights and oil royalty income shall not be included as income
     
  28. Monies Withheld Voluntarily or Involuntarily
     
    1. Food Assistance - Monies withheld from an assistance payment, earned income, or other income source, or monies received from any income source which are voluntarily or involuntarily returned to repay a prior overpayment received from that income source, are exempt as income in the month received, provided that the overpayment was not excludable at the time of the original payment.

      Monies withheld from assistance payments (e.g., TANF, SSI) shall be included as countable income if the monies are withheld for the purpose of recovering from a household an overpayment which resulted from the household's fraudulent failure to comply with a state, federal, or federally-assisted program which provides assistance on the basis of financial need. (For a definition of "fraudulent," refer to 11200).
       

    2. Mandatory deductions from military pay for educational purposes shall not be included as income (or as a resource) while the individual is enlisted in the armed services. If individuals enroll in an educational institution after they leave the service, the amount withheld from salary plus any amounts matched from the VA will be treated as countable educational income minus expenses. Individuals who choose not to attend any school will receive the withheld monies in a lump sum payment and the payment shall be exempt per Lump Sums (above).

       

    3. In addition, for all programs, programs not based on financial need that have a portion withheld to repay a prior overpayment received from that same income source, such as SSA, VA, Unemployment or Workers Compensation shall not have the portion withheld counted as income.
       

  29. National Community Services Act (Food Assistance) - Payments received under Title I of The National and Community Services Act of 1990 (P.L. 101-610) as amended by P.L. 103-82 are exempt as income in the month received. Programs in Kansas funded under this Act are the Youth Service Corps programs operated through Donnelly College (Kansas City, KS), the Kickapoo Tribal Nation, the Topeka Youth Project, and AmeriCorps. All payments are exempt except on-the-job training payments received by persons age 19 or over, or received by persons under the age of 19 who are not under the parental control of another household member.

  30. Older Americans Act (All Programs) - Payments received via the Senior Community Services Employment Program (SCSS P), a special program designed to serve low-income seniors under Title V of the Older Americans Act, are exempt as income in the month received. This program is administered by the Department of Commerce.

    The program provides up to 1,300 hours per year of part-time employment for individual age 55 and older in community service arrangements. Programs funded in Kansas include: SER Corporation and the American Red Cross.
     
  31. PASS Plan (Food Assistance) - Social Security Disability benefits received pursuant to a Plan to Achieve Self-Support (PASS Plan) are exempt as income in the month received and as a resource in the following months. This exclusion is mandated by P.L. 102-237 enacted 12-13-91. Any other unearned or earned income placed into a PASS plan is also to be exempted.

  32. Radiation Exposure (All Programs) - Payments made pursuant to the Radiation Exposure Compensation Act, P.L. 101-426 (10-15-90) are exempt as income in the month received and as a resource in the following months. This law compensates individuals for injuries or deaths resulting from exposure to radiation from nuclear testing and uranium mining in Arizona, Nevada and Utah.
     
  33. Refugee Resettlement Program Funds (All Programs) - Match Grant funding and Reception and Placement (R&P) funding provided to individuals by a refugee resettlement agency are exempt as income in the month received and as a resource in the following month.
  34. Rehabilitation Services Payments (All Programs) - Income directly provided by Kansas Rehabilitation Services, except as noted in 6315, is exempt as income in the month received and as a resource in the following months. Maintenance payments are also exempt as they are in excess of normal living expenses and are considered a reimbursement.
     
  35. Reimbursements
     
    1. All Programs - Reimbursements for out-of-pocket expenses are exempt as income in the month received and as a resource only in the following month.

      Examples of exempt reimbursements are ones for job or training-related expenses such as travel, per diem, uniforms, and transportation to and from the job or training site. Reimbursements which are provided over and above the basic wages for these expenses are excluded; however, these expenses, if not reimbursed, are not otherwise deductible. Reimbursements for the travel expenses incurred by migrant workers are also excluded.

      Also exempt are medical and dependent care reimbursements, reimbursements to students for specific education expenses such as travel or books, and jury duty payments.

      To be exempt, these payments must be provided specifically for an identified expense other than normal living expenses and used for the purpose intended. When a reimbursement, including a flat allowance, covers multiple expenses, each expense does not have to be separately identified as long as none of the reimbursement covers normal living expenses.
       

    1. For food assistance, reimbursements for normal household living expenses such as rent or mortgage, personal clothing or food eaten at home are a gain or benefit and, therefore, are not exempted.
       

      See 7227.1 for instructions on the treatment of expenses covered by a reimbursement.

       

  36. Relocation Assistance (All Programs) - Payments received under the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970 are exempt as income in the month received and as a resource in the following months. The applicant's or recipient's equity in a home is to be disregarded to the extent that such equity was purchased with payments under the Uniform Relocation Act of 1970.
     
  37. Renal Dialysis (All Programs Except Food Assistance) - Special incentive payments received for renal dialysis patients for care in their own home are exempt as income in the month received.
     
  38. Repair or Replacement Payments (All Programs) - Income from a one-time payment or a portion of a one-time payment from a settlement for repair or replacement of property or other settlement, including legal services and medical insurance payments, when the settlement is used for the intended purpose within 6 months of its receipt. This income is exempt as income in the month received and as a resource in the following 6 months.
     
  39. Repatriated Americans (All Programs) - Payments received from the Repatriated Americans Programs are excluded as income in the month received if the person receiving the payment is required to sign an agreement to repay the funds received. If this agreement is not signed, the payments must be counted as regular unearned income. (Refer to 1722.)
     
  40. Ricky Ray Hemophilia Act Fund (All Programs) - Payments made pursuant to the Ricky Ray Hemophilia Relief Fund Act, P.L. 105-364 are exempt as income and as a resource for all programs. The payment is a one-time amount of $100,000.

    NOTE:
    Interest [that exceeds $50, see Interest and Dividend Income (above) earned on these exempt funds is not exempt as income.
     
  41. SCORE or ACE (All Programs) - Payments received through Service Corps of Retired Executives or Active Corps of Executives is exempt as income in the month received and as a resource in the following months.
     
  42. Senior Health Aides (All Programs) - Payments received through Senior Health Aides or Senior Companions are exempt in the month received and as a resource in the following months.
     

  43. Shared Living (All Programs) - In shared living arrangements, cash paid from one family to another toward the total cost of shelter is exempt as income in the month received. The portion of shelter costs paid shall not be an allowable expense for the family receiving the payment. See 7227.1.
     
  44. SSI (All Programs Except Food Assistance) - Income of an SSI recipient (including 1619(b) recipients) and retroactive SSI benefits (even if the individual receiving the benefit is no longer an SSI recipient) are exempt as income in the month received and as a resource in the following months.
     
  45. Tax Refunds (All Programs) - Legislated tax rebates and refunds are exempt as income in the month received.

    Tax rebates issued via the Economic Stimulus Act of 2008 are exempt as income and a resource in the month received and exempt as a resource in the following two months.

    For food assistance, tax refunds are exempt as income and as a resource for a period of 12 months after receipt.

  46. Third Party Beneficiary Payments (Food Assistance) -

    1. Money which is received and used for the care and maintenance of a third-party beneficiary who is not a household member. Payments through an agency such as the Veterans or Social Security Administration which is responsible for monitoring the appropriate use of the funds are to be considered available to the person for whom they are intended.

    2. If a single payment is intended for both household and non-household members, any identifiable portion of the payment intended and used for the care and maintenance of the non-household member shall be exempted.

    3. If the non-household member's portion cannot be readily identified, the payment shall be evenly prorated among intended beneficiaries. The exemption shall be applied to the non-household member's pro rata share or that amount actually used for his/her care and maintenance, whichever is less.
       
  47. Trust for a VA Child (All Programs) - Money for a child which is held in trust by VA and determined by VA unavailable for subsistence needs is exempt as income in the month received and as a resource in the following months.
     
  48. VA Payments (All Programs)
     
    1.  VA benefits resulting from unusual medical expense (UME) deductions are exempt as income in the month received.

      NOTE: See Educational Income (above) regarding the treatment of VA Educational income.

    2. Benefits paid to children of Vietnam veterans who are born with spina bifida pursuant to Public Law 104-204 are exempt as income in the month received and as a resource the following months.
       
    1. Benefits paid to children of women Vietnam veterans born with certain birth defects pursuant to Public Law 106-419 are exempt as income in the month received and as a resource the following months.
       

  49. Vendor Payments (All Programs) - Money payments that are not payable directly to a household but are paid to a third party for a household expense are vendor payments and exempted as follows (See 6220 (9) for countable vendor payments.):
     

    1. A payment made in money on behalf of a household shall be considered a vendor payment whenever a person or organization outside of the household uses its own funds to make a direct payment to either the household's creditors or a person or organization providing a service to the household. For example, if a relative or friend, who is not a household member, pays the household's rent directly to the landlord, the payment is considered a vendor payment and is not counted as income to the household. Similarly, rent or mortgage payments, made to landlords or mortgages by HUD or by state or local housing authorities, are other examples of vendor payments and are also exempted.
       

    1. Public Assistance payments or other assistance payments financed by state or local funds which are not made directly to the household but paid to a third party on behalf of the household to pay a household expense shall be considered an exempt vendor payment and not counted as income to the household if such payments are for:
       

      1. Medical assistance;
         

      2. Child care assistance;
         

      3. Housing assistance payments made to a third party on behalf of a household residing in temporary housing, if the temporary housing provided for the household lacks facilities for the preparation and cooking of hot meals or the refrigerated storage of food for home consumption.
         

        Public Assistance or other assistance vendor payments financed by state or local funds which are made on behalf of migrants in the labor stream are exempt and not counted as income regardless of the purposes of the vendor payments.

         

    2. Payments in money that are not made to a third party, but are made directly to the household, are counted as income and are not excludable as vendor payments.
       

    3. Public Assistance payments or other assistance financed by state or local funds which are provided over and above the normal Public Assistance grant or other assistance payment and would not normally be provided in a money payment to the household shall be considered emergency or special assistance and exempted as income if provided directly to a third party for a household expense. This rule applies even if the household has the option of and receives a direct cash payment.
       

    4. See 7227.1 for instructions on treatment of expenses covered by a vendor payment.

  50. VISTA - VISTA is an AmeriCorps Program with special income treatment rules as follows:
     
    1. Cash and Child Care - Any payments received through the VISTA program are exempt as income in the month received.
       
    2. Food Assistance - Any payments received through VISTA are exempt only if the client was receiving food assistance at the time(s) he joined VISTA.
       
  51. Work Employment Programs Payments (All Programs) - The values of any services or monies received for support or transitional services paid directly to the client through work programs as defined in KEESM 3400 are exempt as income in the month received. In addition, irregular monies and/or lump sums received as incentive payments for participation in approved work activities shall be exempt as income for TANF, Child Care, and Food Assistance purposes. Programs include but not limited to: Head Start/Early Head Start programs, supervised job placement programs, life skill classes, special disability and/or addiction treatment programs.
     
  52. Work Opportunities Reward Kansans Payments (WORK) - Allocation payments made to individuals under an approved WORK Plan for Independence are considered a reimbursement and are exempt as income for all programs. All payments are also exempt as a resource in the month received.  

    Funds retained following the month of receipt are exempt as a resource if such funds are maintained in an allowable WORK checking or savings account per 8400. Funds moved to non-approved accounts lose exempt status and are countable.
     
  53. Workforce Investment Opportunity Act (WIOA) - Income received from the Workforce Investment Opportunity Act of 1998 (WIOA) is exempt as income with the exception of on-the-job training program payments and paid work experience received by persons 19 or older. On-the-job payments and paid work experience received by persons under 19 are exempt as income.
     
  54. Youth Service Corps - Payments provided through Youth Service Corps are exempt in the month received.