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SNAP CERTIFICATION MANUAL – SECTION 5000 5700 Unearned Income 5709 Gifts/Cash Prizes

Guardianship payments are treated the same as foster care payments with the same two options.

5709 Gifts/Cash Prizes SNAP Manual 01/01/00 A monetary gift or prize on a one-time basis will not be considered income to the household. A monetary gift received for a birthday present or a Christmas present is an example of a one-time gift. Gifts received on a one-time basis will be considered a lump sum payment and handled as instructed in SNAP 4950. If a household member receives a recurring gift or prize which exceeds $30 per quarter, the gift or prize will be counted in the household’s budget as unearned income. Recurring gifts or prizes in excess of $30 per calendar quarter may either be averaged forward over the period of intended use or counted as income in the month received.

5710 Installment Contracts SNAP Manual 01/01/00 Income resulting from an owner-financed sale of property is counted as unearned income; no earned income deduction will be allowed. However, the installment contract will be handled in the same way as self-employment income is handled. The following items will be allowed as costs of doing business. 1. Costs incurred by the holder of the installment contract for real estate taxes and/or insurance on the financed property. 2. Costs incurred by the holder of the installment contract for interest payments on a pre- existing mortgage on the financed property - (e.g. - a man sells a house upon which he is still making payments). 3. On a one-time basis, as-incurred, broker’s fees paid by the holder of the installment contract. (For example, if a property is sold on June 11, and the household reports this sale on June 18, the broker’s fees may be excluded from the July payment.) EXAMPLE 1: Mr. Green owns 20 acres of land which he purchased in 1980. His payments on the land are $150 per month which includes $60 per month interest and a $30 escrow payment. The escrow account is used to pay real estate taxes of $200 and annual insurance payments of $100.