Unearned Income 430-05-50-20-10

(Revised 06/01/09 ML3182)

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Unearned income includes, but is not limited to:

  1. Assistance payments such as TANF, including Diversion Assistance and TANF Transition Assistance (Job Retention portion of the payment).  During the first four months of TANF Pay After Performance eligibility, the grant for the children's needs must be anticipated and counted as unearned income.  Since the Pay After Performance individual's needs cannot be anticipated during any of the first four months, the Pay After Performance individual's needs are not counted.  

 

If the individual is complying and their needs are prospectively included in the grant for month five, the grant including the individual's needs must be prospectively budgeted for SNAP.

 

Exception:

JOBS supportive services and TANF special allowances that represent a reimbursement are not counted as income.

When there is a reduction in a TANF benefit due to failure to perform a required action or for IPV and an overpayment is being recouped, the gross amount of the TANF grant must be counted as income if the individual was receiving SNAP benefits at the time the penalty was imposed.

 

  1. Payments such as:
  1. Annuities - including IRAs and Keogh Plans
  2. Pensions - retirement or disability
  3. Veteran's benefits
  4. Workforce Safety & Insurance
  5. Unemployment compensation - The worker must allow three working days mailing time with day one being the check date in the online Job Service system in determining when unemployment benefits were received.
  6. Social Security and SSI benefits
  7. Strike benefits
  8. Deemed income from a spouse in a nursing home to the spouse in the community.
  9. Adoption subsidies

Exception:

Adoption subsidies that are reimbursements for child care while the responsible adult is working or seeking employment or for medical expenses are excluded.  

  1. General Assistance

If child support or taxes are withheld from any of the above benefits, the gross amount must be counted.

If an overpayment is withheld from any of the above benefits, the net amount must be counted.

If there is a reduction in one income source due to the receipt of another income source, the net amount must be counted.

  1. Ownership of rental property is considered a self-employment enterprise.  Gross income less the cost of doing business from rental property is counted as unearned income when a household member does not spend at least 20 hours a week managing the property.
  2. Income made available or payments in money that are made directly to a SNAP household by an ineligible or a non-household member.

 

Examples:

  1. Income deemed from a spouse in a nursing home to the spouse in the community.
  2. Money put in a checking or savings account by an individual outside of the SNAP household.

 

Exceptions:

  1. Excluded income that is deposited in a joint checking account by an ineligible student is not counted as income.

 

  1. If a household member is identified on an account signature card as an individual who can draw on the account, non-household member funds deposited into that account are not considered available and are excluded as income.

Payments from Government sponsored programs, dividends, interest, royalties, and all other direct money payments from any source that can be construed as a gain or benefit.

Exception:

Interest or dividend income that is accrued or paid out on liquid assets is excluded.

  1. Monies that are withdrawn that are or could be received by a household from irrevocable trust funds are considered excludable assets. The withdrawal from the trust must be considered income in the month received.

Please submit complete copies of all trust agreements to the Legal Advisory Unit of the Department of Human Services for review along with the following information:

  1. Who is applying for benefits and what benefits they are applying for.
  2. Verification of all asset(s) owned by the trust including the value of each asset, when the asset was transferred to the trust and who transferred the asset to the trust.
  3. Any other documents or information that you think may be relevant.
  1. When monies (which are not considered earned income) legally belonging to a household are diverted to a third party for an expense, the vendored payment is counted as unearned income rather than excluded.

Examples:

  1. TANF protective payments.
  2. A household receives court ordered monthly support payments in the amount of $400.  $200 is diverted by the provider and paid directly to a creditor for a household expense.  The court ordered payment of $400 is counted as income.  

Money diverted from a court ordered payment to a third party for a household expense must be included as income because the payment is taken from money owed to the household.

Exception:

Payments specified by a court order to go directly to a third party rather than the household are excluded from income because they are not payable to the household.

  1. The amount of a reimbursement that exceeds the actual incurred expense. Reimbursements will not be considered to exceed actual expenses, unless the provider or the household indicates the amount is excessive.
  2. Payments to tribal members (residing on or off the reservation) from gaming proceeds. These payments are not per capita payments and must be prorated over the period of time intended to cover.
  3. Recurring lump sum payments such as but not limited to inheritances and insurance settlements.  These payments must be prorated over the period of time intended to cover.  
  4. All gambling winnings.
  5. Cash donations received on a recurring basis.

Exception:

Cash donations based on need received from private non-profit charitable organizations that do not exceed $300 in a quarter.

 

Example:

A household receives $150 from a private non-profit organization in July, $100 in August, and $100 in September. That household would be entitled to an income exclusion of $150 for July, $100 for August, and $50 for September, for a total of $300.

 

  1. The full amount of child support, spousal support, or any other payments made directly to the household from non-household members.  

Child support payments are shown as income on UNIN in TECS next to the child the payment is intended for.  Spousal support payment are shown as income on UNIN in TECS next to the person the payment is intended for.

 

The worker must verify the following:

  1. The amount of the legal obligation.
  2. The amount of child support received.

For ongoing cases with a North Dakota court order, verification must be obtained from FACSES.  For those households with an out-of-state court order, verification must be obtained using child support stubs or documented collateral contacts.  

Federal tax intercept payments are a non-recurring lump sum and are not counted as income.  Federal tax intercept payments do not appear on the FACSES VIEW ledger.  

State and interstate state tax intercept payments are counted as income as these payment are applied to current child support.  State tax intercept payments do appear on the FACSES VIEW ledger.  

If child support is received via check, direct deposit or electronic payment card (EPC), the worker must allow three working days for posting to the financial account in determining when the income was received.  Day one of the three day count is the check date on on the View Eligibility Ledger Detail screen in FACSES or the date on the check or child support statement for payments not processed through FACSES.  To get to the View Eligibility Ledger Detail screen in FACSES, put an X in the select ('SEL') column by a transaction on the View Eligibility Worker screen and enter.  

 

Child support income is base month budgeted.

 

Exceptions:

  1. If child support income is received monthly or twice a month, it may be averaged if the household agrees to income averaging.  This must be documented in the casefile.
  2. If child support is received quarterly, semi-annually or as an annual payment, it is prorated over the period of time intended to cover.
  3. If child support income is being retained because the household is receiving TANF, child support income is excluded.

When the TANF case closes, base month child support retained by the state must be anticipated as income.  

 

Based on discussion with the household and the verification provided, the worker must document the amount of child support income counted or not counted and why.

 

Initial Application

At application, child support income to the date of interview must be verified via FACSES or by the household and documented.  That amount must be counted along with what the household anticipates to receive for the remainder of the application month.  This may include using verification of the last month's income if that is what the household anticipates for the first month of the review period.  

If a household comes in for the interview at the end of the initial month, all child support received in the initial month must be counted. The three working days allowed for posting to the financial account in determining when income is received does not apply to any payment(s) the household may have already received in the initial or second beginning month.

When processing the second beginning month, the amount of child support income used in the initial month must be anticipated unless the household anticipates a change.  If the household anticipates a change, the change must be verified and used.

 

Reviews

At review a full month's child support income from the base month or month of review, if available, must be verified and used.  If the household reports an anticipated change, verification of the change must be provided and is used.

 

Examples:

  1. A household is certified through January 31 and files an application for review on January 26.  The  household is interviewed on February 10 and receives one child support payment at the beginning of each month.  The household received child support income on February 3.  The February 3 child support income must be used for the first month of the review period (February).  
  2. A household is certified through June 30 and files an application for review on June 26 with no interview required.  The household reports they receive two child support payments each month and received all of their June child support income.  Since the full month's child support from the review month is available, June child support income must be used.

 

Ongoing Cases Subject to Simplified Reporting

For ongoing cases, subject to simplified reporting requirements, if the worker receives an alert that child support was received in the base month, the most current month’s (base month) income as reflected in FACSES must be used to determine the effect on the benefit.  If the base month income results in an increase in benefits, the change must be acted on.  

If the base month income results in a decrease in benefits, the change is not acted on until review.

If the worker receives an alert that no child support was received in the base month, the worker will need to check FACSES.  If no child support was received (applying the three working day policy for child support received in the month prior to the base month) in the base month, no child support income is used to determine the effect on the benefit for the benefit month.

If a household reports they do not expect to continue to receive child support income, the worker must follow up on this reported change by sending the F419 requesting verification. If verification is provided, the change must be acted on to increase benefits.  If verification is not provided, the previously verified amount of income continues to be used until review.   

If a household reports a change in child support income that will result in an increase in benefits, does not provide verification of the change, and the change is not reflected in FACSES, the worker must send F419 and follow up on the reported change.  If verification is provided, the change must be acted on to increase benefits.  If verification is not provided, the previously verified amount of income continues to be used until review.