Individuals Receiving Veteran’s Benefits from Multiple Claims, PCA-14455-150 (Issued October 14, 2008)
Individuals Receiving Social Security from Multiple Claims, PCA-14456-150 (Issued October 14, 2008)
Unemployment Compensation and Sequestration, PCA-16615-150 (Issued April 24, 2013)
Unearned income includes, but is not limited to, the following:
Retirement benefits.
Social Security benefits (Retirement, Survivors, and Disability), including Medicare Part B premiums.
Department of Military and Veteran’s Affairs (DMVA) benefits, including Veteran’s Temporary Assistance (VTA) benefits.
NOTE: If VTA benefits are equal to or greater than the family size allowance (FSA), the budget group is ineligible for Cash Assistance until VTA benefits are exhausted.
NOTE: Money received by a veteran participating in the Compensated Work Therapy program is considered a donation. It is excluded income for Cash Assistance.
Unemployment compensation (UC).
Dividends and interest on accounts other than what is listed in the following note, should be averaged over the period covered.
NOTE: Interest earned on savings bonds, checking accounts, savings accounts, money market accounts, Certificates of Deposit (CDs), and Christmas and vacation club accounts is not counted as unearned income or as a resource in the month of receipt. Interest that remains in an account after the month of receipt is considered a resource. See Section 140.3.
Support or alimony payments (see Chapter 131, Support)
NOTE: Support arrearages count as lump sum unearned income even if the child for whom the support was paid is an adult no longer living in the TANF family.
Excess Over Unreimbursed Assistance (EOURA), in receipt month only. See Appendix B, Excess Over Unreimbursed Assistance (EOURA) Refunds
Contributions. See Section 150.32.
Picket pay.
Income of a child. See Section 150.33.
Lump sum payments. See Chapter 157, Lump Sum.
Income deemed available from a legally responsible relative (LRR). See Chapter 155, Deeming Income and Resources.
Rental property income, if the property is managed by a third party and the person is not directly involved. See Section 150.37.
Sick and accident benefits paid by an insurance carrier through policies paid by the recipient or someone other than an employer
NOTE: When an insurance carrier sends payments directly to a person, it is important to review the policy’s terms and verify how the person uses the payments. For cash assistance, the CAO will count an insurance payment if the person receives the payment directly to use for any purpose, unless the person proves that he or she endorsed the check and gave it to a provider to pay medical bills.
Examples:
Example 1: Mr. B. receives an insurance payment after his hospitalization. Medical Assistance (or private health insurance) is paying Mr. B.’s medical bills. The CAO reviews the insurance policy and finds that Mr. B. may use the insurance payment for any purpose. The payment counts as unearned income when Mr. B. applies for TANF for his family.
Example 2: Mr. B. receives an insurance check but does not have any other medical coverage. He gives the CAO proof that he endorsed the check and gave it to the hospital to pay his medical bills. The insurance payment does not count in determining TANF eligibility.
Workers’ compensation.
Income from company profit-sharing plans.
The CAO will consider the gross amount of unearned income when computing the budget group’s eligibility and monthly assistance payment. It must allow only the deductions incurred by the person to obtain the benefit. The CAO will verify and record in the case record all unearned income.
NOTE: The CAO will count unearned income recouped for an overpayment (such as Unemployment Compensation, Social Security Disability, or Veterans Benefits) in the eligibility determination for cash assistance unless the recoupment amount was previously counted in the cash benefits eligibility determination. If it is unable to be determined, whether this income was counted, the CAO will not exclude the recouped amount.
NOTE: A deduction is not given from Social Security benefits for Medicare. No deduction is made for taxes, medical insurance premiums, or support withheld from Workers' Compensation, Unemployment Compensation, or Retirement benefits.
The CAO will count support paid by a legally responsible relative (LRR) or putative father for a child or a spouse. Support must be counted in determining eligibility whether it is court ordered, voluntary, paid directly to the person, or paid to DHS.
An LRR is: The spouse or biological or adoptive parent of a TANF dependent child or a TANF minor parent.
NOTE: A putative father is not an LRR.
Court ordered child support will be coded as 24.
Support paid by an LRR will be coded 25.
Alimony or spousal support will be coded 26
Voluntary support will be coded 32.
In the month of application, the CAO will do the following:
Determine eligibility prospectively, counting child or spousal support received in the month up to the authorization date. Disregard current support payments (except arrears) of the actual amount up to $100 if there is one child in the family, or the actual amount up to $200 if there are two or more children in the family. See Section 150.311 and Appendix B, Excess Over Unreimbursed Assistance (EOURA) Refunds.
NOTE: If the person reports receipt of voluntary support from a putative father, ask the person to provide a statement or to get a statement from the putative father to verify that the payments are support. Consider the payment a contribution if the person does not provide the statement. See Section 150.32.
If the budget group is eligible, adjust the support amount to the first month’s payment. Remove the support adjustment effective with the first benefit of the second budget month.
Inform the person that court-ordered or voluntary support received after the date of authorization must be paid to DHS.
After the first budget month, the CAO will:
Refer the recipient to the DRS handling their case to report and remit any support received directly by the household. See Section 131.4, Assignment of Support and Supplemental Handbook Chapter 915, Reimbursement.
NOTE: If a person fails to remit the voluntary support, the CAO will:
Complete an overpayment for support that the person received but that was not counted in determining the monthly benefit amount. See Supplemental Handbook Chapter 910, Overpayment Recovery.
Send an advance notice to reduce the monthly cash benefit by 25 percent for failure to comply, without good cause, with support requirements.
If a person fails to remit court-ordered support, complete an overpayment for the support received that was not counted in determining the monthly benefit amount. See Supplemental Handbook Chapter 910, Overpayment Recovery. Receipt of court-ordered support assigned to DHS should not occur often. It is the noncustodial parent’s responsibility to remit support payments to the Pennsylvania State Collection and Disbursement Unit (PA SCDU) as indicated on the support order and required by law in order to receive credit for the payment.
Compute the monthly assistance payment amount without adjusting the amount of support collected by DHS.
Include the current support amount assigned to and collected by DHS as income when determining eligibility.
NOTE: A court-ordered monthly support obligation is considered paid in the month it is due.
e-CIS generates a worker alert for each month the current support amount DHS collects is more than the monthly cash assistance grant. The CAO will determine Cash Assistance eligibility as soon as it gets the alert or other support income information. The CAO will take action no later than the second month after receiving the information.
Example: The CAO receives notice in October of support collected in September. It uses the information to redetermine eligibility no later than December. (See Section 168.71.)
If support income is recurring and results in ineligibility that is expected to last more than one month when counted for eligibility, the CAO will discontinue the assistance payment for the first payment day that can be met after proper notice. The legal reason for closing the case is the actual support collected. Case closing is appropriate if there is a basis to determine that future support collections will make the family ineligible.
Example: The CAO determines that the current support amount is more than the grant amount and there is a wage attachment. It acts promptly to close the case.
NOTE: A benefit adjustment is not required if current support income alone or in combination with other income results in ineligibility that appears to be an isolated occurrence for one month only.
Count court-ordered or voluntary support payments that a sanctioned or ineligible person receives for the budget group as income when computing the amount of the monthly assistance payment.
NOTE: Request verification if voluntary support payments are counted as income and the sanctioned person reports that the payments have stopped. If the loss of support income cannot be verified and the statements of the payers and the sanctioned person disagree, accept the person’s statement and no longer count the income. The sanction no longer applies if the person was sanctioned due to receipt of direct support not paid to DHS.
Count the sanctioned person’s share of any support payments received directly as income when computing the amount of the monthly assistance payment. Their share of any support is deemed available to the budget group receiving assistance.
Federal law mandated changes to the way DHS distributes child support collections. The Pennsylvania Child Support Enforcement System (PACSES) implemented the changes and began calculating unreimbursed assistance (URA).
URA is defined as the total amount of reimbursable assistance the family receives that has not been repaid by assigned current support, by arrears payments, or through reimbursement from other sources.
Total reimbursable assistance is defined as the basic cash assistance grant plus other reimbursable assistance a family receives in the month (child care, transportation, etc.).
The basic Cash Assistance Grant is the amount of assistance based on the family size, minus earned and unearned income adjustments. DHS may recover URA through the Title IV-D Child Support Enforcement Program in accordance with Title 23 of the Pennsylvania Consolidated Statutes §4378(b). See Appendix B, Excess over Unreimbursed Assistance (EOURA) Refund.
DHS has established a plan to calculate the URA and to distribute support collected by DHS in excess of the URA. The excess is called EOURA. DHS is now implementing automated computation and distribution in a monthly processing format.
EOURA refunds count as lump sum unearned income. EOURA funds that remain after the month of receipt count as a resource. The CAO must review the case to determine whether the support received for the household will be more than the FSA in subsequent months. See Section 157.51.
NOTE: The CAO should discuss with the person ways the EOURA refund could increase self-sufficiency, such as using the refund to buy reliable transportation or to start a family savings account to save for an education, to buy a home, or to start a business. Deposits and interest on a family savings account are exempt from consideration for the cash program. See Section 140.8, Other Excluded Resources.
Example: Mrs. J. receives Cash Assistance for herself and three children. There is no other household income. In June she receives an EOURA refund of $250. The CAO will count the $250 as a resource beginning in July.
If the EOURA refund combined with other resources causes the family to be ineligible in July due to excess resources, the cash assistance ends for the first payment date that can be reached following the month of receipt after proper notice.
A countable cash contribution by a person other than a putative father or an LRR is unearned income. Code as either 28 (Lump sum , unearned) or 99 (Other income). A countable cash contribution by an LRR is support (coded 25). When a putative father makes a cash contribution, the caretaker/relative or putative father must acknowledge in writing that the contribution is support in order for the income to be handled according to support regulations. See Chapter 131, Support.
Exception: Do not count contributions such as gifts, loans, or borrowed money, up to $30 per person within the budget group per quarter. See Section 150.5, Income Excluded in Computing Eligibility.
NOTE: If the putative father does not state in writing that a cash contribution is support, it counts as a contribution.
The CAO will adjust a countable cash contribution as unearned income.
The CAO will count income of a child who is included in the budget group when determining eligibility. Examples of such income include, but are not limited to, the following:
The child’s share of retirement, survivor’s, disability insurance, or veteran’s benefits.
Court-ordered support payments.
Allotments.
Benefits.
Awards.
Trust fund payments.
Voluntary support payments.
Income that covers more than one child is considered available to each child in equal shares, unless the payer or court order specifies otherwise.
The CAO will not count RSDI of a child for the monthly assistance payment amount if the benefits are being paid to a representative payee:
Who does not live in the same common residence as the child.
Who does not actually make the money available for the support of the child.
The CAO will not count income of a natural or adopted child under age 21 if the child is not included in the budget group and the income is paid to another person on the child’s behalf. This income is restricted to the child’s use. Examples include, but are not limited to, the following:
Retirement.
RSDI.
Veteran’s benefits.
Court-ordered support payments.
Allotments.
Benefits.
Awards.
Trust fund payments.
Voluntary support payments from a parent.
NOTE: The CAO will not count a “Uniform Transfer to Minors Act” (UTMA) account, formerly known as “Uniform Gifts to Minors Act” (UGMA), also known as PUGMA or PUTMA in Pennsylvania. These funds do not count as income or a resource because a child, the owner of the account, cannot access the funds until age 21. The custodian who establishes and/or manages the child’s account is not the owner. The CAO does not consider the funds legally available, even if the custodian is a legally responsible relative (LRR). DHS does not require the funds to be withdrawn. If the custodian does withdraw funds for the child’s needs, the CAO will consider the funds as the child’s unearned income in the month withdrawn. When the child turns 21, the CAO will consider any funds remaining in the account(s) as an available resource.
If a child is removed from the budget group and they have income adjusted to the monthly assistance payment, the CAO must remove the child and income adjustment at the same time.
Exception: The CAO will count the income when deeming income available to the budget group if the child is living with the budget group and is a minor parent of a child in the budget group. See Chapter 155, Deeming Income and Resources.
Maintenance subsidies paid for a special needs child under the Adoption Opportunity Act and foster care payments are restricted to the child they are being paid for. See Section 150.5.
55 Pa. Code § 183.81(17) 55 Pa. Code § 183.81(18)
See Section 150.5 for considering earned income of children who are members of the budget group.
Any nonrecurring unearned lump sum payment is considered income in the month when it is received. Unearned lump sum payments include, but are not limited to, the following:
55 Pa. Code § 183.37 55 Pa. Code § 183.105(4)
Cash prizes.
Lottery winnings.
Life insurance benefits.
Cash inheritances.
Personal injury and other damage awards and settlements.
Retroactive benefits, such as RSDI.
Delayed Unemployment Compensation.
Delayed Workers' Compensation.
150.341 Lottery Winnings
The CAO will count lump sum lottery winnings of $599.99 or less as unearned income in the month received and as a resource in subsequent months if the money is still available.
The CAO will count lump sum lottery winnings of $600 or more as an available resource prorated across 12 months from the Claimed Date.
*NOTE: The CAO will count lump sum lottery winnings received for an applicant, in the same month of application, as unearned income, regardless of the amount claimed.
Applicant scenario: A TANF applicant has claimed lottery winnings in the same month that they applied for TANF benefits. Regardless of the amount of lottery winnings received, the claimed amount is counted as unearned income in the month received. If the client reports that there are remaining funds, that money is counted as an ongoing resource, until the funds have been exhausted.
Example: Ms. C applied for TANF for herself and four children on 3/1/2020 and she claimed lottery winnings of $600 on 3/7/2020. She states that she used the funds to pay bills and that there are no funds remaining. $600 must be entered into the Claimed Amount field. $0 must be entered into the Amount Remaining field, so funds are not counted as an ongoing resource.
*IF Ms. C stated that $200 was remaining from the amount claimed, $200 would be entered in Remaining Amount field and counted as on ongoing resource until the client proves that the funds have been exhausted.
Recipient example: A TANF household reports that
Ms. H claimed lottery winnings of $900 on 3/15/2020. The lottery winnings
are verified upon receipt through IEVS Exchange 110. The lottery
winnings claimed are entered into the case record. The lottery winnings
claimed are over $600, therefore, it is prorated and counted for a 12-month
period as $75 per month until 2/28/2020.
Recipient example: An IEVS Exchange 110 hit
is received for a TANF household showing Mr. M has claimed lottery winnings
of $500 on 3/19/2020, this information is verified upon receipt. Claimed
lottery winnings of $500 will be added to the case record. Since the amount
claimed is under $600 it is counted as unearned income in the month received.
Applicant & Recipient example: The Gallagher family last received TANF in 12/2020 and benefits stopped for failure to renew. They reapply for cash assistance on 3/17/2020. On IEVS Exchange 11 it shows that Mr. Gallagher won $15,000 on 12/23/2020. The household was a TANF recipient when those lottery winnings were received. $15,000 needs to be counted as a resource and prorated for a 12-month period. The household is ineligible for cash assistance until 11/30/2020.
*Note - Gambling winnings do not count towards cash assistance eligibility.
The CAO will deem income to the budget group from an LRR, parent of a TANF or minor parent, or stepparent who is living with the applicant or recipient and is not receiving TANF, GA, SBP, or SSI benefits.
The CAO will deem income to the budget group from an alien’s sponsor. See Chapter 155, Deeming Income and Resources.
The CAO will not count educational assistance from scholarships, grants, and loans.
NOTE: In-kind scholarships that include free or reduced room and board do not count as income.
The CAO will count any income from rental property managed by a rental agency or third party as unearned income. The person must have no specific responsibility for management of the property or the capital investment.
The CAO will count cash assistance benefits from another state, Puerto Rico, or the U.S. Virgin Islands in calculating the grant if the applicant actually received a partial benefit in the month of application. It must not count benefits paid by another state but not actually received by the applicant.
Revised September 14, 2020, replacing January 24, 2018.