550.3 Unearned Income

Unemployment Compensation (UC) Reduction for 2018, PFS18808-550 (Published January 24, 2018)

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)

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

NOTE:  For announcements, alerts, or more information about UC, use the two following Department of Labor and Industry’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.  

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.

          Reminder:  Workers should check PACSES for child support or alimony (even if listed as voluntary on the application).

                    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:

  1. 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

  1. 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.

  2. 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. 

  3. 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.

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

    1. 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.

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

    3. 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. 

     NOTE:  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. 

Examples:

 

 

 

Issued January 24, 2018 , replacing March 1, 2012