6220 Types of Countable Unearned Income

 

  1. Reserved
     

  2. 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.

  3. Reserved.
     

  1. Child Support

    1. Reserved

    2. Reserved

    3. Reserved
       

    4. Current Support - Current support and/or alimony payments made directly to the household by non-household members. Support and alimony payments are considered the income of the person for whom they are intended.  See 6410(11) for child support exemption criteria. 

    5. Reserved
       

  1. 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). Temporary worker's compensation is considered earned income. 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.

    NOTE: The $25 extra unemployment insurance payments paid as a result of the American Recovery and Reinvestment Act of 2009 are exempt for all programs.

  2.  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.

  3. Trust Fund Income - Monies which are withdrawn or dividends which are or could be received by a household from trust funds considered to be exempted resources under 5430 (1) or 5430 (9) shall be considered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.

  4. 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.

  5. Vendor Income Not Exempt as Income - (See 6410 for exempt vender payments.)
     

    1. 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.
       

    2. 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.
       

    3. 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.

 

 

10.  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.

 

11.   Other - The following types of payments are also countable:
 

      1. Payments from government-sponsored programs,

      2. interest and dividends, that exceeds $50 per month, (see 6410)

      3. royalties (see 7122.1),

      4. regular monetary gifts,

      5. GI Bill monthly housing allowance (MHA),

      6. royalty payments made to tribal members from casino profits,

      7. Trade Adjustment Assistance (TAA) Program payments; and

      8. all other direct money payments from any source which can be construed to be a gain or benefit.
         

See 6410 for exempt interest and 6410 for exempt monetary gifts.