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

(Revised 8/1/2023 ML #3740)

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For purposes of this section:

• Source: An entity from whom income, earned or unearned, is received.
• Terminated:  Income, earned or unearned, that stops or ends and is not anticipated to begin again.

 

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	1066	1066	1066	1066	1066
	Net Income	-200	-0	-0*	-0	-0
	TANF Benefit	866	1066	1066	1066	1066

*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		Retrospective
	Benefit Month	JAN	FEB	MARCH	APRIL	MAY
	Base Month	JAN	FEB	JAN	FEB	MAR
	Need Standard	1066	1066	1066	1066	1066
	Net Income	-0	-200	-0	-0*	-0
	TANF Benefit	1066	866	1066	1066	1066

*   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		Retrospective
	Benefit Month	JAN	FEB	MAR	APR	MAY	JUN
	Base Month	JAN	FEB	JAN	FEB	MAR	APR
	Need Standard	1066	1066	1066	1066	1066	1066
	Net Income	-200	-200	-200*	-200	-200**	-0
	TANF Benefit	866	866	866	866	866	1066

*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.