PMS18420340 Treatment of retroactive VA Aid and Attendance benefits - March 31, 2017
A lump sum payment may be earned or unearned. For all non-MAGI MA categories, if the (earned or unearned) payment is treated as a resource in the month the individual receives it, the type of lump sum will not affect the way the CAO counts it. If the payment is treated as income in the month of receipt, the CAO will allow deductions on the basis of whether the payment is earned or unearned. 55 Pa. Code § 178.4(g)(2) 55 Pa. Code § 181.31
NOTE: The CAO will not apply the lump sum policy to cash that an individual receives from the sale or transfer of a resource. The cash will stay a resource and will not be treated as income.
A lump sum payment is considered to be earned if it is a late or one-time-only payment from wages, tips, salaries, commissions, or bonuses from employment.
Example: An occasional extra amount of pay that an individual does not receive regularly and is infrequent will be considered a lump sum.
A payment that an individual receives as self-employment income is not treated as a lump sum.
An earned income tax credit (EITC) payment is not counted as income for SSI-related, MAGI, TANF-related, or GA-related categories.
55 Pa. Code §§ 181.122(a)(2) 55 Pa. Code § 181.263(a)(1)
Unearned lump sum payments include, but are not limited to, infrequent payments from the following:
Cash prizes.
Cash lottery winnings.
Life insurance benefits.
Cash inheritances.
Federal, state, or local tax refunds.
Personal injury and other damage awards and settlements.
Retroactive benefits, such as Social Security benefits.
NOTE: Senior Citizen Rebate and Assistance Act payments are excluded.
Reminder: For SSI-related categories, a retroactive SSI or Social Security benefit is not counted as income or as a resource for nine months after the month when the individual receives it. If part of the payment is still left after the nine-month period, the CAO will count that amount as a resource.
55 Pa. Code § 181.121(a)(17) 20 CFR § 416.1233
Updated February 13, 2025, Replacing May 3, 2024