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SNAP CERTIFICATION MANUAL – SECTION 5000 5400 Income Exclusions 5409 Non Recurring Lump Sum Payments

See SNAP 5415 for instructions on verifying loans. See SNAP 4950, Lump Sum Payments, for instructions on handling the receipt of loans.

5409 Non-Recurring Lump Sum Payments SNAP Manual 01/01/00 One-time lump sum payments are excluded as income. Examples of lump sum payments include, but are not limited to, the following payments: 1. Federal and State income tax refunds, rebates, orcredits. 2. Child Support when received as the result of the interception of a State or Federal income tax refund. Other child support payments will be handled as explained in SNAP 5704. 3. Refunds of security deposits on rent or utilities. 4. Lump sum insurance payments such as, but not limited to, settlements for damages to a household member’s property, life insurance payoffs, crop insurance payments and lump sum Worker’s Compensation settlements. 5. Loans. 6. One-time payments for damages received through a court or through an out of court settlement. 7. Cash gifts, awards, or prizes when received on a one-time basis. See SNAP 5709 for instructions on handling recurring payments. 8. The proceeds (net) from the sale of personal property when payment is received ona one-time basis. See SNAP 5710 when payments are received in installments. 9. Work incentive payments received upon the completion of theprogram. 10. Retroactive Social Security or Railroad Retirement payments or any other retroactive benefit payment. TEA and SSI lump sum payments will be excluded as a resource so long as the recipient continues to be eligible for the benefit. See SNAP 4451 for instructions. If the recipient is no longer eligible for TEA or SSI, the lump sum payment will be considered a resource. 11. Retroactive wages (net) paid on a one-time basis to correct a previous underpayment or to otherwise adjust wages. 12. Vacation pay (net) when received as a one-time payment after termination or layoff. 13. Severance pay (net) when received as a one-time payment. (See SNAP 5716 for instructions on handling severance pay received in installments.) 14. Salary bonuses (net) that cannot be considered to be annual bonuses. See SNAP 5502 for additional information.