(Revised 06/01/15 ML3440)
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Unearned income includes, but is not limited to:
- Assistance payments such as TANF, including Diversion Assistance and TANF Transition Assistance (Job Retention portion of the payment). During the first four months of TANF Pay After Performance eligibility, the grant for the children's needs must be anticipated and counted as unearned income. Since the Pay After Performance individual's needs cannot be anticipated during any of the first four months, the Pay After Performance individual's needs are not counted.
If the individual is complying and their needs are prospectively included in the grant for month five, the grant including the individual's needs must be prospectively budgeted for SNAP.
Exception:
JOBS supportive services and TANF Supportive Services and Special Items of Need that represent a reimbursement are not counted as income.
The housing allowance is not considered a reimbursement, and is counted as unearned 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 SNAP benefits at the time the penalty was imposed.
- Payments such as:
- Annuities - including IRAs and Keogh Plans
- Pensions - retirement or disability
- Veteran's benefits
- Workforce Safety & Insurance
- 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.
- Social Security and SSI benefits
- Strike benefits
- Deemed income from a spouse in a nursing home to the spouse in the community.
- 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.
- General Assistance
If child support or taxes are withheld from any of the above benefits, the gross amount must be counted.
If a portion of one of the above benefits is withheld to repay an overpayment from that same source, the net amount must be counted.
If a portion of one of the above benefits is withheld to repay another source, the gross amount must be counted.
Examples:
1. Back Taxes
2. Defaulted Student Loan
If there is a reduction in one income source due to the receipt of another income source, the net amount must be counted.
- Self-employment income is considered unearned income when the individual is not actively engaged in the operation. The unearned income from self-employment is separated from the earned income when using the self-employment calculation worksheet.
- Contracts for Payment. When an applicant or recipient has sold property with a contract to receive a series of periodic payments, rather than one payment, the arrangement is usually called a "contract for deed". The essential feature of the contract for deed is the right to receive future payments, usually coupled with a right to get the property back if the payments are not made. Contractual rights to receive money payments also arise out of other types of transactions. The valuable contract document may be called a note, accounts receivable, mortgage, or by some other name.
Note: Some contractual rights may be written so the lender has the right to demand payment at any time. If so the note is considered a demand note and can be called in at any time. If a note is written so the lender does not have the right to demand payment but the note is in default, it also becomes a demand note. Contractual rights may or may not have collateral or security to guarantee payment.
The payments will include both interest and a portion of the sale price of the property that was sold (principle) and must be calculated separately.
The interest portion of payments received for any contractual right to receive payments (such as Contracts for Deed) must be counted as unearned income. The payment must be prorated over the period of time intended to cover.
- Income made available or payments in money that are made directly to a SNAP household by an ineligible or a non-household member.
Examples:
- Income deemed from a spouse in a nursing home the spouse in the community.
- Money put in a checking or savings account by an individual outside of the SNAP household.
Exceptions:
- Excluded income that is deposited in a joint checking account by an ineligible student is not counted as income.
- If a household member is identified on an account signature card as an individual who can draw on the account of a non-household member and has no legal ownership of the funds deposited into that account these funds are not considered available and are excluded as income.
- 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.
- 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:
- Who is applying for benefits and what benefits they are applying for.
- 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.
- Any other documents or information that you think may be relevant.
- 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:
- TANF protective payments.
- 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.
- 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.
- 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.
Examples:
- Three Affiliated Tribal Elderly Payments
- Three Affiliated Tribes People's Fund Payments
- Spirit Lake Social Impact Payments
- Sisseton-Wahpeton Oyate of the Lake Traverse Reservation Casino Cash
Exception:
At application and review, payments received from the Three Affiliated Tribes People's Fund or general distribution from oil and gas revenue in the most recent FULL 12 month period are annualized and counted for the new review period.
- Alaska Permanent Fund Payments. These payments are recurring payments and must be annualized. If someone moves to North Dakota and will no longer get the payment, the current year’s payment will be annualized and counted.
- Recurring lump sum payments such as but not limited to gift cards such as Visa and MasterCard, inheritances and insurance settlements. These payments must be prorated over the period of time intended to cover.
- All gambling winnings.
- 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.
- 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 payments are shown as income on UNIN in TECS next to the person the payment is intended for.
The worker must verify the following:
a. The amount of the legal obligation.
b. The amount of child support or spousal 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 View ND Child Support (FACSES) window.
State and interstate state tax intercept payments are counted as income as these payments are applied to current child support. State tax intercept payments do appear on the View ND Child Support (FACSES) window.
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 Disbursed Date on the View ND Child Support (FACSES) window or the date on the check or child support statement for payments not processed through FACSES.
Child support and spousal support income is base month budgeted.
Exceptions:
1. If child support or spousal 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 or spousal 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. This may include using verification of the last month's income if that is what the household anticipates for the first month of the review period.
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.
Reviews
At review a full month's child support income from the base month or month of review, if available, must be verified and used. If the household reports an anticipated change, verification of the change must be provided and is used.
Examples:
- A household is certified through January 31 and files an application for review 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 review period (February).
- A household is certified through June 30 and files an application for review on June 26 with no interview required. The household reports they receive two child support payments each month and received all of their June child support income. Since the full month's child support from the review month is available, June child support income must be used.
Ongoing Cases
For ongoing cases, 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 review.
If the worker receives an alert that no child support was received in the base month, the worker will need to check FACSES. If no child support was received (applying the three working day policy for child support received in the month prior to the base month) in the base month, no child support income is used to determine the effect on the benefit for the benefit month.
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 review.
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 review.
