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Department
of Human Services Families
First Online Policy Manual Income |
Revised: |
20.4 |
UNEARNED INCOME |
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Unearned income is any income, which does
not meet the definition of earned income.
No earned income exclusions or work expense deductions are applied to
unearned income. The following monies are considered unearned income: ·
Unemployment
Compensation and Workers’ Compensation. ·
Vacation,
sick, longevity, and bonus pay are all unearned income when mandatory
deductions are not made. ·
Rental
income is considered unearned if the individual is not actively engaged in
producing the income. If the
individual carries no specific responsibilities in earning the income, as
when rental properties are in the hands of rental agents and the check is
forwarded to the individual, or when an individual rents farm land to others
and receives a monthly payment, the income is unearned. The cost of doing business is an allowable
deduction regardless of whether the income is earned or unearned. ·
Interest
payments in excess of $60 per quarter (less than $60 is disregarded), dividends, royalties, and all other such direct money
payments, which can be construed to be a gain or benefit, are considered
unearned income. Convert such income
to monthly amounts if received on a weekly, bi-weekly, or semi-monthly
basis. Consider these payments as
currently available income. If such
payments are received quarterly, prorate them over three months; semi-monthly,
prorate over six months; annually, prorate over 12 months. ·
General
assistance payments, pensions, or other countable needs based assistance
payments (other than SSI) are unearned income. ·
Payments for
rehabilitation made under the Services to the Blind, Vocational
Rehabilitation, or other such programs are unearned income. Deduct expenses from the gross
rehabilitation payment. They may
include: -
Transportation
costs to and from the training facility, doctor, clinic, etc., based on the
current state mileage allowance. -
Books,
tools, equipment, etc., not furnished by the facility. -
Supplies
such as pens, pencils, etc., not furnished by the facility. -
Required
occupational clothing. -
Noon meals
if not furnished by the facility (not to exceed current VA allowance). -
Laundry and
cleaning expenses related to training. -
Incidental
expenses over and above “personal incidentals” such as coffee breaks,
grooming aids, some recreation (not to exceed $30 per month) if the person is
away from home. -
Initial
outlay items (such as footlockers, suitcases) not furnished by VR or Services
for the Blind. -
Costs for
items not included in our need standard, but necessary to participate in the
program can be excluded as assistance from other agencies. -
Count any
remaining rehabilitation payment, after expenses, as unearned income. ·
Annuities,
pensions, retirement, veterans or disability benefits, military or Job Corps
allotments, and other such pensions and benefits. ·
Contributions
in the form of regular cash payments made to the AU that are
over $30 per recipient per calendar quarter. ·
Money
withdrawn from the body of a trust or interest/dividends paid to a
client. Such monies are treated as
regular income or annualized income as appropriate, depending upon the
frequency of receipt. ·
Non-IV-E
Foster Care board payments are considered unearned income for a minor mother
in foster care. If the dependent child
is on non-IV-E funds, that child’s total board rate must also be counted as
unearned income. Individuals eligible for IV-E are not
eligible for Families First. |
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