Unearned Income 430-05-50-20-10

(Revised 04/01/08 ML3136)

View Archives

 

Unearned income includes, but is not limited to:

1. Assistance payments such as TANF, including Diversion Assistance and TANF Transition Assistance (Job Retention portion of the payment).

Exception:

JOBS supportive services and TANF special allowances that represent a reimbursement are not counted as income.

 

When there is a reduction in a TANF benefit due to failure to perform a required action or for IPV and an overpayment is being recouped, the gross amount of the TANF grant must be counted as income if the individual was receiving food stamp benefits at the time the penalty was imposed.

2. Payments such as:

1. Annuities - including IRAs and Keogh Plans
2. Pensions - retirement or disability
3. Veteran's benefits
4. Workforce Safety & Insurance
5. Unemployment compensation - The worker must allow three working days mailing time with day one being the check date in the online Job Service system in determining when unemployment benefits were received.
6. Social Security and SSI benefits
7. Strike benefits
8. Deemed income from a spouse in a nursing home to the spouse in the community.
9. Adoption subsidies

Exception:

Adoption subsidies that are reimbursements for child care while the responsible adult is working or seeking employment or for medical expenses are excluded.  

10. General Assistance

If child support or taxes are withheld from any of the above benefits, the gross amount must be counted.

 

If an overpayment is withheld from any of the above benefits, the net amount must be counted.

 

If there is a reduction in one income source due to the receipt of another income source, the net amount must be counted.

3. Ownership of rental property is considered a self-employment enterprise.  Gross income less the cost of doing business from rental property is counted as unearned income when a household member does not spend at least 20 hours a week managing the property.
4. Income made available or payments in money that are made directly to a food stamp household by an ineligible or a non-household member.

Examples:

1. Income deemed from a spouse in a nursing home to the spouse in the community.
2. Money put in a checking or savings account by an individual outside of the food stamp household.

Exceptions:

1. Excluded income that is deposited in a joint checking account by an ineligible student is not counted as income.
2. If a household member is identified on an account signature card as an individual who can draw on the account, non-household member funds deposited into that account are not considered available and are excluded as income.

5. Payments from Government sponsored programs, dividends, interest, royalties, and all other direct money payments from any source that can be construed as a gain or benefit.

Exception:

Interest or dividend income that is accrued or paid out on liquid assets is excluded.

6. Monies that are withdrawn that are or could be received by a household from irrevocable trust funds are considered excludable assets. The withdrawal from the trust must be considered income in the month received.

Please submit complete copies of all trust agreements to the Legal Advisory Unit of the Department of Human Services for review along with the following information:

1. Who is applying for benefits and what benefits they are applying for.
2. Verification of all asset(s) owned by the trust including the value of each asset, when the asset was transferred to the trust and who transferred the asset to the trust.
3. Any other documents or information that you think may be relevant.

7. When monies (which are not considered earned income) legally belonging to a household are diverted to a third party for an expense, the vendored payment is counted as unearned income rather than excluded.

Examples:

1. TANF protective payments.
2. A household receives court ordered monthly support payments in the amount of $400.  $200 is diverted by the provider and paid directly to a creditor for a household expense.  The court ordered payment of $400 is counted as income.  

Money diverted from a court ordered payment to a third party for a household expense must be included as income because the payment is taken from money owed to the household.

 

Exception:

Payments specified by a court order to go directly to a third party rather than the household are excluded from income because they are not payable to the household.

8. The amount of a reimbursement that exceeds the actual incurred expense. Reimbursements will not be considered to exceed actual expenses, unless the provider or the household indicates the amount is excessive.
9. Payments to tribal members (residing on or off the reservation) from gaming proceeds. These payments are not per capita payments and must be prorated over the period of time intended to cover.
10. Recurring lump sum payments such as but not limited to inheritances and insurance settlements.  These payments must be prorated over the period of time intended to cover.  
11. All gambling winnings.
12. Cash donations received on a recurring basis.

Exception:

Cash donations based on need received from private non-profit charitable organizations that do not exceed $300 in a quarter.

Example:

A household receives $150 from a private non-profit organization in July, $100 in August, and $100 in September. That household would be entitled to an income exclusion of $150 for July, $100 for August, and $50 for September, for a total of $300.

13. The full amount of child support, spousal support, or any other payments made directly to the household from non-household members.  

Child support payments are shown as income on UNIN in TECS next to the child the payment is intended for.  Spousal support payment are shown as income on UNIN in TECS next to the person the payment is intended for.

 

The worker must verify the following:

1. The amount of the legal obligation.
2. The amount of child support received.

For ongoing cases with a North Dakota court order, verification must be obtained from FACSES.  For those households with an out-of-state court order, verification must be obtained using child support stubs or documented collateral contacts.

 

Federal tax intercept payments are a non-recurring lump sum and are not counted as income.  Federal tax intercept payments do not appear on the FACSES VIEW ledger.  

 

State and interstate state tax intercept payments are counted as income as these payment are applied to current child support.  State tax intercept payments do appear on the FACSES VIEW ledger.  

 

If child support is received via check, direct deposit or electronic payment card (EPC), the worker must allow three working days for posting to the financial account in determining when the income was received.  Day one of the three day count is the check date on on the View Eligibility Ledger Detail screen in FACSES or the date on the check or child support statement for payments not processed through FACSES.  To get to the View Eligibility Ledger Detail screen in FACSES, put an X in the select ('SEL') column by a transaction on the View Eligibility Worker screen and enter.  

 

Child support income is base month budgeted.

 

Exceptions:

1. If child support income is received monthly or twice a month, it may be averaged if the household agrees to income averaging.  This must be documented in the casefile.
2. If child support is received quarterly, semi-annually or as an annual payment, it is prorated over the period of time intended to cover.
3. If child support income is being retained because the household is receiving TANF, child support income is excluded.

When the TANF case closes, base month child support retained by the state must be anticipated as income.  

 

Based on discussion with the household and the verification provided, the worker must document the amount of child support income counted or not counted and why.

 

Initial Application

At application, child support income to the date of interview must be verified via FACSES or by the household and documented.  That amount must be counted along with what the household anticipates to receive for the remainder of the application month.  

 

If a household comes in for the interview at the end of the initial month, all child support received in the initial month must be counted. The three working days allowed for posting to the financial account in determining when income is received does not apply to any payment(s) the household may have already received in the initial or second beginning month.

 

When processing the second beginning month, the amount of child support income used in the initial month must be anticipated unless the household anticipates a change.  If the household anticipates a change, the change must be verified and used.

 

Recertifications

At recertification the worker must verify all income up to the date of interview.  If the household is interviewed in the last month of the certification, base month child support income must be used, unless the household reports an anticipated change.  If the household reports an anticipated change, verification of the change must be provided and is used.

 

If the household files a recertification in the last month of the certification period and is not seen until the month after the end of the current certification period, the worker must verify all income up to the date of interview. If all income for the first month of the new certification period is available prior to the interview date, that income must be used for the first month of the certification period.  

Example:

A household is certified through January 31 and files a recertification application on January 26.  The  household is interviewed on February 10 and receives one child support payment at the beginning of each month.  The household received child support income on February 3.  The February 3 child support income must be used for the first month of the certification period (February).  

 

If all income for the first month of the new certification period is not available and the household cannot reasonably anticipate the amount of income for the first month of the new certification period, income from the last month of the certification period must be used.  If the household reports an anticipated change, verification of the change must be provided and is used.  

 

Example:

A household is certified through January 31 and files a recertification application on January 26.  The  household is interviewed on February 10 and receives two child support payments each month.  The household received child support income on February 4. The household anticipates receiving another child support payment in February, however, the amount is uncertain.   Child support income from the month of January must be used for the first month of the certification period (February).

 

If a household files a recertification application in the month following the end of their certification period, child support income to the date of interview must be verified and documented.  That amount must be counted along with what the household anticipates to receive for the remainder of the application month.  

 

If a household files a recertification application in the month following the end of their certification period, comes in for the interview and all child support has been received in the initial month, it must be counted.  The three working days allowed for posting to the financial account in determining when income is received does not apply to any payment(s) the household may have already received.

  

Ongoing Cases Subject to Change Reporting Requirements

For ongoing cases, subject to change reporting requirements, the most current month’s (base month) income as reflected on FACSES must be used to calculate eligibility and level of benefits, unless the household reports a change.

 

Examples:

1. Household does not report any changes.   In processing benefits for the month of December, the worker checks FACSES and $200.00 in child support payments was received in October.  The $200.00 received in October is counted when calculating eligibility and level of benefits for December.
2. Household does not report any changes.   In processing benefits for the month of December, the worker checks FACSES and no child support payments were received in October.  Zero child support is counted when calculating eligibility and level of benefits for December.

 

If the household reports they do not expect to continue to receive child support income or reports a change that will result in an increase in benefits, does not provide verification of the change, and the change is not reflected in FACSES, the worker must send F442 and follow up on the reported change.  

1. If the household responds to the F442 and provides sufficient information/verification, the worker has 10-days to act on the reported change and send the household the appropriate notice.
2. If the household fails to provide sufficient information/verification, the worker will receive an alert to send the F401.  If the 10th day falls on a weekend or holiday, the F401 cannot be sent until the next working day.

• If it is prior to advance notice deadline, the F401 must be sent and the case will close at the end of the month.
• If it is after advance notice deadline, the F401 cannot be sent until the first working day of the following month.  Benefits are authorized using base month child support.  

Exception:

If the household reports an anticipated change in the amount of child support they expect to receive that will result in a decrease in benefits, the change must be acted on without verification of it. Verification must be obtained at the next recertification.

 

Ongoing Cases Subject to Simplified Reporting

For ongoing cases, subject to simplified reporting requirements, if the worker receives an alert that child support was received in the base month, the most current month’s (base month) income as reflected in FACSES must be used to determine the effect on the benefit.  If the base month income results in an increase in benefits, the change must be acted on.  

 

If the base month income results in a decrease in benefits, the change is not acted on until six month report or recertification, whichever occurs first.  

 

Exception:

If acting on another change from a primary source, the change in child support income must also be acted on regardless of the effect on the benefit.  

 

If a household reports they do not expect to continue to receive child support income, the worker must follow up on this reported change by sending the F419 requesting verification. If verification is provided, the change must be acted on to increase benefits.  If verification is not provided, the previously verified amount of income continues to be used until six-month report or recertification, whichever occurs first.   

 

If a household reports a change in child support income that will result in an increase in benefits, does not provide verification of the change, and the change is not reflected in FACSES, the worker must send F419 and follow up on the reported change.  If verification is provided, the change must be acted on to increase benefits.  If verification is not provided, the previously verified amount of income continues to be used until six-month report or recertification, whichever occurs first.