Unearned Income 400-19-55-20

 

Definition of Unearned Income 400-19-55-20-05

(Revised 6/1/10 ML #3218)

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(N.D.A.C. 75-02-01.2-54)

 

Unearned income is income not gained by current labor, service, or skill. Most unearned income is the result of past labor, services, or investments, which have enabled the individual to receive a current benefit or pension. All unearned income must be verified and documented in the case file.

 

The types of income listed below are illustrations of unearned income (gross income prior to deduction) and must be considered available in their entirety:

  1. Currently received benefits such as Social Security, Veterans benefits,  private pensions, Worker's Compensation, Unemployment  Compensation (including any stimulus payments), mineral lease, rent, and royalties, military allotments, disaster unemployment benefits, general assistance received by cash or check by the household, Three Affiliated Tribal elderly payments, etc;

Note: When a member of the TANF household serves as a representative payee for federal benefits (i.e. SSI, Social Security, Veterans benefits, etc.) For a person or persons who are not members of the TANF household, the benefits paid to the representative payee on behalf of that individual shall not be considered income available to the TANF household.

  1. Dividends and interest derived from savings and checking accounts, investments, and insurance proceeds, but not settlements, paid directly to a TANF household member is unearned income in the month in which it is received.

Accrued dividends and interest are considered assets rather than income and are subject to the asset limit even if the dividends and interest are later withdrawn;

  1. Money deposited into a joint checking or savings account, when the depositor is not a member of the TANF household.
  2. Other sources of income received on a regular basis such as CRP income. When a CRP contract is set up the full payment may be received by the landlord or operator, or a portion of the payment may be paid to a tenant of the farm. A portion of the payment is allowed to be paid to a tenant when the tenant was farming the land, or had an interest in the property (i.e. was on the previous contract), in the year before the contract was signed. The CRP contract specifies the amount of the payment and to whom the payment is made. For purposes of determining eligibility, only count the share the applicant or recipient receives per the CRP contract. Allowable expenses are those allowable costs of doing business that are claimed on the applicant or recipients tax return, including property taxes and insurance as a deduction.
  3. Non-excluded lease payment income deposited in and disbursed through Individual Indian Monies accounts maintained by individual Indians by the Bureau of Indian Affairs as proceeds from the lease of lands held by the federal government in trust for the Indian;
  4. Lease payments made to persons for the use of lands occupied or owned by those persons unless the lease specifically provides for monthly payments or unless the lease is for a total term of less than one year; and
  5. Mineral lease payments, however denominated, except initial leasing bonus payments.
  6. Trust income received on a regular basis. If you are not certain whether an arrangement constitutes a trust, contact the Legal Advisory Unit. Submit all trusts to the Legal Advisory Unit for review and identify who is applying for assistance, send a complete copy of the trust agreement, provide verification of all assets owned by the trust, and provide any other relevant documents or information.
  7. General Assistance paid by cash or check directly to a TANF household from the county social service office or Bureau of Indian Affairs must be treated as unearned income. General Assistance paid by voucher on behalf of a TANF household by the county social service office or the Bureau of Indian Affairs is disregarded.