Non-Recurring Lump-Sum Payments 430-05-50-25-45

(Revised 01/01/04 ML2893)

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Money, both earned and unearned, received in the form of non-recurring lump-sum payments including, but not limited to:

• Retroactive salary increases
• Back wages
• Income tax refunds
• Rebates or credits
• Retroactive Social Security payments (whether it is paid in a lump sum or installments)
• Retroactive SSI
• Retroactive TANF
• TANF payments made to divert a family from becoming dependent on welfare if the payment is not defined as assistance based on TANF regulations.
• Child support arrearages
• Retroactive railroad retirement benefits
• Insurance settlements
• Mineral leasing bonuses and up-front payments
• Refunds of security deposits on rental property or utilities
• Military re-enlistment bonuses

If a household receives up to 50% of the bonus amount as an initial payment with the remainder paid in equal annual installments, the initial payment and the annual installments are annualized.

If a household receives the bonus as a lump-sum payment, it is exempt as a non-recurring lump-sum payment. The lump-sum payment is counted as a resource in the month it is received.

• Bonuses that cannot be reasonably anticipated on a regular basis
• Specific types of self employment payments

 

All non-recurring lump sum payments are counted as assets in the month they are received, unless specifically excluded by Federal law.