3.605.3 Countable Unearned Income

Unless otherwise specified, any unearned income is countable and together with all other countable income of the client it must be considered against the applicable assistance program need and/or grant standards specified in the regulations covering the different programs. A. Countable Unearned Income Countable unearned income includes, but is not limited to the following, as well as other payments from any source, which can be construed to be a gain or benefit to the client and which are not earned income: 1. Veteran’s Compensation and pension. 2. Income from rental property is considered as unearned income where the client is not actively managing the property on an average of at least twenty (20) hours a week. Rental income is countable to the extent it exceeds allowable expenses. Allowable expenses are maintenance, taxes, management fees, interest on mortgage, and utilities paid. This shall not include the purchase of the rental property and payments on the principal of loans for rental property. 3. Current spousal maintenance (also referred to as alimony). 4. U.S. Department of Veterans Affairs (VA) educational assistance (G.I. Bill) payments or any other benefits which are conditional upon school attendance are income to the extent that they exceed expenses necessary for school attendance. 5. Proceeds of a life insurance policy to the extent that they exceed the amount expended by the beneficiary for the purpose of the insured recipient's last illness and burial which are not covered by other benefits. 6. Proceeds of a health insurance policy or personal injury lawsuit to the extent that they exceed the amount to be expended or required to be expended for medical care. 7. Strike benefits. 8. Income from jointly owned property - in a percentage at least equal to the percentage of ownership or, if receiving more than percentage of ownership, the actual amount received. 9. Lease bonuses (oil or mineral) received by the lessor as an inducement to lease land for exploration are income in the month received. 10. Oil or mineral royalties received by the lessor are income in the month received. 11. Stepparent and non-citizens' sponsors' attributable income for Colorado Works cases. 12. Amounts withheld from unearned income because of a garnishment are countable as unearned income. 13. Loans or inheritances. 14. Gifts or prizes. 15. Dividends and interest received on savings bonds, leases, etc. 16. Annuities, pensions, or retirements payments. 17. Disability or survivor's benefits. 18. Worker's Compensation payments. 19. Unemployment Compensation. 20. Social Security benefits. B. Periodic Payments The following types of periodic payments are countable unearned income: 1. Annuities - payments calculated on an annual basis which are in the nature of returns on prior payments or services; they may be received from any source; 2. Pension or retirement payments - payments to a client following retirement from employment, such payments made by a former employer or from any insurance or other public or private fund; 3. Disability or survivor's benefits - payment to a client who has suffered injury or impairment, or to such client’s dependents or survivors; such payments may be made by an employer or from any insurance or other public or private fund; 4. Worker's Compensation payments - payments awarded under federal and state law to an injured employee or to such employee's dependents; amounts included in such awards for medical, legal, or related expenses incurred by a client in connection with such claim are deducted in determining the amount of countable unearned income; 5. Veteran compensation and pension - payments based on service in the armed forces; such payments may be made by the VA, another country, a state or local government, or other organization. Any portion of a VA pension that is paid to a veteran for support of a dependent shall be considered countable unearned income to the dependent rather than the veteran. 6. Unemployment Compensation - payments in the nature of insurance for which one qualifies by reason of having been employed and which are financed by contributions made to a fund during periods of employment; 7. Railroad retirement payments - payments, such as sick pay, annuities, pensions, and unemployment insurance benefits, which are paid by the Railroad Retirement Board (RRB) to a client who is or was a railroad worker, or to such worker's dependents or survivors; 8. Social Security benefits - old age (or retirement), survivors, dependent, and disability insurance payments (OASDI or RSDI) made by the Social Security Administration; also included are special payments at age seventy-two (72) (Prouty Benefits and Black Lung benefits); 9. Supplementary Medical Insurance Benefits (SMIB)- Social Security “Medicare” supplementary medical insurance benefit is a voluntary program, therefore the full Social Security award amount is counted as income to determine Colorado Works eligibility and to determine the amount of financial assistance to the client. The lump sum SMIB refund received by the “buy-in” recipient is exempt income as the client has previously been charged with that income. 10. Military Allotment- A military allotment received on behalf of a client for those individuals included in the budget unit shall be considered as income in the month received. The military allotment received by the non-recipient spouse, parent, or stepparent on behalf of individuals not in the assistance unit shall be considered as income in the month received to the extent that such income exceeds the need standard concerning those persons not in the budget unit.