6200 Unearned Income

Unearned income is any income that is not earned and may be derived from benefits (unemployment compensation, Social Security, VA, etc.), pensions, contributions, and settlements. Unearned income received or reasonably assured to be received in a month or in the eligibility base period shall be considered.

Gross unearned income shall be considered unless exempt as noted below.

Income producing costs can be deducted from gross unearned income to consider the net amount. This could include such things as property taxes and insurance payments on income producing equipment, vehicles, or property as well as interest paid on property purchased on an installment plan. It would not include such things as income taxes, garnishment, depreciation, or payments toward principal on property purchased on an installment plan. Also, see 7122.1 for guidelines in establishing such costs on unearned income arising from a self-employment enterprise. It is the responsibility of the client to provide verification for income producing costs. In allowing for such costs, it is not the intent of EES programs to pay debts, subsidize a nonprofit activity, or treat income on the basis of IRS policies. See also 7122.3 concerning special self-employment income counting rules for medical assistance.

6210 Unearned Income Payments

6211 Regular Unearned Income

Regular unearned income shall be considered as income when it is reasonably assured to be available in the same monthly amount in the future. Regular unearned income shall be budgeted in accordance with 7100 and subsections.

6212 Irregular Unearned Income

Irregular unearned income results from income which varies in amount from month to month and is expected to continue. Irregular unearned income shall be budgeted in accordance with 7100 and subsections.

6213 Intermittent Unearned Income

Intermittent unearned income is received on other than a monthly basis such as quarterly, semiannually, or annually. It must be considered and averaged. (See 7120.) Intermittent unearned income received prior to the first eligibility period shall not be considered. The case record shall clearly indicate that the income is being treated as "intermittent" unearned income.

NOTE: An additional benefit check is provided on an annual basis to retired members of the Kansas Public Employer's Retirement System (KPERS) who began receiving a benefit prior to July 2, 1987. This 13th check and is generally identical in amount to the monthly benefit. This check is to be treated as intermittent income and budgeted over the entire year by dividing by 12.

6220 Types of Countable Unearned Income

Reserved
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.
Reserved.
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.
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 6200 (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.
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 (2) or 5430 (10) 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 (2) or 5430 (10). Income producing costs shall be deducted from gross trust income to determine the countable amount. Refer to 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 vendor 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.
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.
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 (6322),
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.