550.3 Unearned Income

The CAO must use the gross amount of unearned income.   No deductions are given.     7 CFR § 273.9(b)(2)

 Example:  No deduction is made from Social Security benefits for Medicare.  No deduction is made for taxes withheld from Workers’ Compensation or Retirement benefits.

Exception:  The CAO must exclude as unearned income any portion of a Workers' Compensation payment paid by an employer or its insurer directly to an attorney for services previously rendered.  7 CFR § 273.9(c)(1)

Unearned income includes the following:   7 CFR § 273.9(b)(2)

• Cash assistance payments

• Supplemental Security Income (SSI)

• Social Security benefits

NOTE:  Persons may receive benefits under multiple claim numbers.  The income from each claim must be counted and identified with the related claim number.

• Unemployment compensation

NOTE:  For announcements, alerts, or more information about UC, use the two following Department of Labor’s websites;

Important:  The additional $25 weekly UC payment from the American Recovery and Reinvestment Act of 2009 is not counted when determining eligibility for all months beginning with the entire month of November 2009 and any other month following that included the $25 weekly amount in the calculation.  

• The 1.7 percent reduction of UC is not counted when determining eligibility. If a UC benefit payment includes the 1.7 percent reduction, the CAO must exclude the amount from the calculation for SNAP. 

• Delayed UC benefits are lump sum resources, not income.    

• Retirement benefits

• Veterans Administration (VA) benefits, including aid-and-attendance benefits

NOTE:  Persons may receive VA benefits under multiple claim numbers.  The income from each claim must be counted and identified with the related claim number.

• Disability benefits

• Workers' compensation

• Sick benefits paid as wages by an employer when the employee does not expect to return to work

• Sick benefits paid as part of the employer's benefit package (not as wages but as an insurance payment, for example), regardless of the person’s employment status

• Strike benefits, including picket duty pay

• Support or alimony payments, including arrears and support pass-through payments (see Appendix A of this chapter and Section 550.5.)

• Foster care payments when the household chooses to include the foster child or adult as a household member

• Adoption assistance payments

• Pensions withdrawn as a recurring payment

• Military Family Subsistence Supplemental Allowances (FSSA)   Public Law 109-608

• Military Family Subsistence Supplemental Allowances (FSSA) received by a military member’s family or any money made available from an absent family member’s pay;

• • NOTE: FSSA is a permanent need-based payment. It is listed on a military member’s leave and earnings statement.  It is countable as unearned income. BAH and BAS are not Military FSSA’s. See Section 550.2;

• To determine countable FSSA unearned income, use the steps below:

• If a military person was part of the SNAP household before deployment to a designated area then the CAO must:

• Determine the net (after taxes) military pay of the person before their deployment.  SNAP guidance allows use of the net pay to simplify this process

• Determine the amount of income made available to the SNAP household from the absent military person’s pay since being deployed to a designated combat area.  This amount is usually made by direct deposit or allotment.

• If the amount made available to the SNAP household is an increase from the earned income used while they were a SNAP household member, use the income from first bullet above as unearned income. 

• If the amount made available to the SNAP household remains the same or decreases, use the actual amount made available to the SNAP household as unearned income.

• If the military person was not part of the SNAP household before deployment to a designated area then the CAO must:

• • Determine the amount of income actually made available to the SNAP household by the absent military person before deployment.

  • Determine the amount of income actually made available to the SNAP household from the absent military person’s pay since deployment.  This  may be by direct deposit or allotment.

  • If the amount of income actually made available to the SNAP household increases, use the amount of income from step #1 as unearned income. 

  • If the amount made available to the SNAP household remains the same or decreases, use the actual amount currently made available to the SNAP household as unearned income. 

• The amount of the increase in military pay due to a promotion and/or a Cost of Living Adjustment after the military person’s deployment is disregarded, if the additional pay is the result of deployment to or while serving in a combat zone, and it was not received immediately prior to serving in the combat zone.  See 550.5. 

• Money withdrawn from a trust investment

• Income from annuities or dividends, even when not withdrawn

• Deemed income from a disqualified or non-eligible individual or a noncitizen sponsor and the sponsor's spouse. (see Chapter 555)

• Royalties

• Income from owning rental property when a household member actively manages the property less than an average of 20 hours per week

• Payments received from the Milk Income Loss Contract program

• Any other direct money payment that is a gain or benefit for which no services are rendered

Examples:

• Payments from accident insurance plans.  The CAO must review the terms of accident insurance plans to determine whether the payment should be counted.  If the insurance is assigned and the provider submits a claim and receives payments directly from the insurance company, the payments are not considered income to the household.

• Match Grant funding as provided by a Voluntary Resettlement Agency (VOLAG) listed in Chapter 730.1.

Reissued March 1, 2012 , replacing September 25, 2008