Countable Unearned Income Types 400-19-55-20-15

(Revised 1/1/17 ML #3482)

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The following types of unearned income are countable:

 

1. Payments from Social Security Administration (Retirement, Survivors, and Disability Insurance (RSDI)):
   
   Lump sum retroactive adjustments from Social Security due to changes in an individual’s earnings record will be considered as follows:
   
   If the individual received SSA benefits AND had earnings in the year prior to the adjustment, the adjustment will be considered a recurring lump sum benefit.
   
   If the individual did not receive SSA benefits OR did not have earnings in the year prior to the adjustment, the adjustment will be considered a non-recurring lump sum benefit.
   
   
2. Unemployment and Workforce Safety and Insurance

These benefits are paid on an Electronic Benefits Card and are considered income:

1. On the date received; or
2. When available and the recipient has a legal ability to access the income for support or maintenance.

If the household cannot verify the date of actual receipt, the receipt date is deemed to be either:

1. The date funds were deposited into the account based on a bank statement from the electronic card payment vendor or their personal bank account; or
2. Two working days after the date the WSI or UIB was processed.

3. Other benefits, including but not limited to:

• Monthly or regular payments from annuities, pensions and other retirement plans (including dividends and interest). Penalties if any should be deducted from the gross disbursement amount.
• General Assistance
• Military Allotment received from non-household member.
• Short term or long term disability or loss of time insurance payments for illness or injury paid by someone other than the employer (AFLAC, CIGNA, Thrivent, etc.).
• Railroad benefits
• Veterans benefits other than those designated for education.

4. Child Support and Spousal Support - Court-Ordered and Voluntary.
   
   
5. Unearned income as a result of self-employment.
   
   
6. Tribal Payments and Individual Indian Monies (IIM) Accounts. See this section for treatment of this income.
   
   
7. Foster Care Payments, including continuing education and job-training through PATH Inc.
   
   
8. Recurring Lump Sum Payments are those payments that can be reasonably anticipated to be received more than once. Payments may be recurring monthly, quarterly, yearly, etc.
   
   Recurring Lump Sum Payments include but are not limited to the following:

• Gambling winnings
• Mineral lease bonuses, oil and gas royalties. Any mandatory production taxes withheld prior to distribution are not counted and are allowed to reduce the amount of countable income. Any income taxes withheld are not allowed to reduce the amount of countable income.
• Alaska Permanent Fund Payments
• Insurance settlements
• Inheritance
• Income received from a trust - Submit SFN 1947 - Request for Trust Review, along with complete copies of all trust agreements to the Legal Advisory Unit of the Department of Human Services for review.
• Lump sum retroactive social security payments when the individual had earnings in the year prior to the adjustment.

9. Cash Contributions received on a regular or irregular basis that can be reasonably anticipated.
   
   
10. Monetary gifts - Portions over $500 per month per household received for special occasions such as birthdays, graduation, holidays etc. Monetary gifts not related to a special occasion are considered a cash contribution.
    
    
11. Contracts for Payment. When an applicant or recipient has sold property with a contract to receive a series of periodic payments, rather than one payment, the arrangement is usually called a "contract for deed". The essential feature of the contract for deed is the right to receive future payments, usually coupled with a right to get the property back if the payments are not made. Contractual rights to receive money payments also arise out of other types of transactions. The valuable contract document may be called a note, accounts receivable, mortgage, or by some other name.

NOTE: Some contractual rights may be written so the lender has the right to demand payment at any time. If so, the note is considered a demand note and can be called in at any time. If a note is written so the lender does not have the right to demand payment but the note is in default, it also becomes a demand note. Contractual rights may or may not have collateral or security to guarantee payment.

The payments will include both interest and a portion of the sale price of the property that was sold (principle) and must be calculated separately.

The interest portion of payments received for any contractual right to receive payments (such as Contracts for Deed) must be counted as unearned income. The payment must be prorated over the period of time intended to cover.

12. Refugee Cash Assistance Payments – Payments received under the Refugee Cash Assistance Program or the Wilson/Fish Alternative Program.
    
    
13. State Long Term Care Subsidy – Individuals receiving a payment from the State Long Term Care Subsidy Program.
    
    
14. Money deposited into a Joint Checking or Savings Account - Money deposited, when the depositor is not a member of the household, is counted as unearned income in the month in which it is deposited.

EXCEPTION:

If the client's name appears on a signature card, but no member of the household has an ownership interest in that account, funds in the account are not available as income or asset.

15. Money obligated to the household which is diverted by the household for an expense.
    
    
16. Stipends/Subsistence Payments - Any stipend/subsistence payment received while attending training that is specifically identified to cover the cost of daily living expenses must be counted as unearned income, as it is intended to cover the same basic needs as those provided under TANF.
    
    
17. WIOA or Youthbuild allowances and payments

EXCEPTION:

Allowances and payments to dependent children under the age of 18 who are full-time students, OR age 18 who are full-time students and can reasonably be expected to complete their secondary education before attaining age 19 are not counted.

18. Trade Readjustment Allowance (TRA) - Payments made to individuals the Trade Adjustment Assistance (TAA) Extension Act of 2011 who are not attending training as a result of being eligible under a training waiver (is under a waiver of the requirement to participate in training as training may be determined not feasible or appropriate and waived as a requirement for basic TRA eligibility) are considered unearned income.