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

(Revised 6/1/10 ML #3218)

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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 of income if it continues to be received in the 1st retrospectively budgeted month.  

 

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 if the last payment was received during a prospective month. 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	MARCH	APRIL	MAY
	Need Standard	523	523	523	523	523
	Net Income	-200	-0	-0*	-0	-0
	TANF Benefit	323	523	523	523	523

 

*    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; adjusted, if necessary, when actuals are received. It is not counted again in the first retrospective benefit month of 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	MARCH	APRIL	MAY
	Need Standard	523	523	523	523	523
	Net Income	-0	-200	-0	-0*	-0
	TANF Benefit	523	323	523	523	523

 

*   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; adjusted, 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 unearned income ends during March.

 

 

		Prospective		Retrospective
	Benefit Month	JAN	FEB	MARCH	APRIL	MAY	JUNE
	Base Month	JAN	FEB	JAN	FEB	MARCH	APRIL
	Need Standard	523	523	523	523	523	523
	Net Income	-200	-200	-200*	-200	200**	-0
	TANF Benefit	323	323	323	323	323	523

 

*   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.