Terminated Source of Income 400-19-55-10-10

(Revised 10/1/15 ML #3459)

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For purposes of this section:

 

When the final payment of income is received during the 1st or 2nd prospective months, the income is considered a terminated source of income.  Income cannot be treated as a terminated source if it is received in the 1st retrospectively budgeted month.  

Example: The 1st and 2nd prospective months are January and February and the 1st retrospectively budgeted month is March.

  • If the income ends in January or February and none is received in the calendar month of March, the income is considered a terminated source of income.
  • If the income continues to be received in the calendar month of March, it is not considered from a terminated source and January income would be counted when determining March benefits.

If income is not received in the 1st retrospectively budgeted month, but in a later month the individual receives income from the same source (e.g. rehired to same job, begins receiving the same type of unearned income, etc.), the income received during the 1st or 2nd prospective months continues to be considered terminated source income.

Exception: Income received by an individual who is on temporary leave and who expects to return to the same employment when the leave ends is not considered income from a terminated source.

 

Terminated Source of Income is not counted when retrospective budgeting.

 

Voluntary or Court Ordered Support payments for children and caretakers (in the case of spousal support) eligible for TANF are assigned to the State of North Dakota upon authorization of the initial month of TANF eligibility. Therefore, once assigned, any support retained by the household for an eligible child or caretaker is treated as a terminated source of income.

 

The following examples illustrate the treatment of terminated source income under two-month retrospective budgeting.

Example # 1: Applicant With Recurring Income Which Ends During First Prospective Month

 

Client applies in January and receives $200 unearned income. The unearned income ends during January.

             

 

 

 

Prospective

 

Retrospective

 

Benefit Month

JAN

FEB

MARCH

APRIL

MAY

 

Base Month

JAN

FEB

JAN

FEB

MAR

 

Need Standard

 533

533

533

533

533

 

Net Income

-200

  -0

  -0*

  -0

  -0

 

TANF Benefit

333

533

533

533

533

*The $200 unearned income received in January is considered income from a terminated source, as it ends in the 1st prospective month. It is prospectively budgeted in January then corrected, if necessary, when actual are received. It is not counted again in the first retrospective benefit month (March).

 

Example #2: Applicant With Recurring Income Which Ends During Second Prospective Month

 

Individual applies in January and receives $200 unearned income in February. The unearned income ends during February.

 

 

 

             

 

 

 

Prospective Blue Right Errow image

 

 

Retrospective Blue Right Errow image

 

     

 

Benefit Month

JAN

FEB

MARCH

APRIL

MAY

 

Base Month

JAN

FEB

JAN

FEB

MAR

 

Need Standard

533

533

533

533

533

 

Net Income

  -0

-200

  -0

  -0*

  -0

 

TANF Benefit

533

333

533

533

533

*   The $200 unearned income received in February is considered income from a terminated source as it ends in the 2nd prospective month. It is prospectively budgeted in February then corrected, if necessary, when actuals are received.  It is not counted again in retrospective benefit month of April.

 

Example #3: Applicant With Recurring Income Which Ends During First Or Subsequent Retrospective Months

 

Individual applies in January and receives $200 unearned income in January, February and March. The final payment from this unearned income source is received in March.

               

 

 

 

Prospective  Blue Right Errow image

 

 

Retrospective  Blue Right Errow image

 

           

 

Benefit Month

JAN

FEB

MAR

APR

MAY

JUN

 

Base Month

JAN

FEB

JAN

FEB

MAR

APR

 

Need Standard

533

533

533

533

533

533

 

Net Income

-200

-200

-200*

-200

-200**

  -0

 

TANF Benefit

333

333

333

333

333

533

*The $200 unearned income received in January and February is considered recurring income and NOT income from a terminated source. It must be budgeted in both the prospective benefit months (January and February) and the retrospective benefit months (March and April).

 

**The $200 unearned income received in March must be budgeted against the May benefit.