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SNAP CERTIFICATION MANUAL – SECTION 5000 5700 Unearned Income 5711 Interest, Dividends, Royalties

5711 Interest, Dividends, Royalties SNAP Manual 01/01/00 The following are examples of interest, dividend, or royalty payments that are considered unearned income: 1. Interest Interest payments received by any household member for money held in any type of account – checking, savings, certificate of deposit, etc. Interest is considered unearned income even is not paid directly to the household but added to the account balance. An interest payment will be counted as unearned income in the month received, or prorated over the period of time the payment is intended to cover, whether received on a quarterly or annual basis. The household selects the method to be used. EXAMPLE: On 11/10 a household member received a quarterly interest payment in the amount of $15.00 from his savings account. He may choose to either consider the entire $15.00 as income for the month of November or may have it prorated over the three-month period of November, December, and January. 2. Dividends Dividends are payments received from investment such as, but not limited to stocks, bonds, insurance, etc. owned by the household. Dividends may be received on a monthly, quarterly or annual basis. Dividends are counted as unearned income either in the month received or are prorated over the period of time the payment was intended to cover. 3. Royalties Royalties are: a. payments received as profits from the sale of a product, b. payments from oil or gas leases, or c. payments made from the sale of items under a patent. Royalties may be issued on a monthly, quarterly, or annual basis. Royalties will either be counted as income in the month of receipt or prorated over the period of time the payment is intended to cover.