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Chapter: 1800 Income Program: TCA 45

When the eligibility specialist questions that a valid loan exists, the individual must verify the existence of the loan from the source. A signed statement from the loan provider that confirms that repayments are being made or will be made in accordance with an established payment schedule is sufficient.

When an individual is the borrower:

Proceeds of a valid loan received by the borrower are not income in the month of receipt. If the loan is determined not to be valid, the proceeds are considered income in the month received. The amount remaining from the loan in the month following receipt is considered as an asset to the borrower.

When an individual is the lender:

If the loan is determined to be valid and negotiable, the loan is a countable asset; only the interest portion of the payment received is excluded as income to the lender. The principal portion of the payment is conversion of an asset, not income. If the loan is determined to be not valid and not negotiable the loan is not a countable asset, the entire payment received (principal and interest) is counted as income. 1820.1302 Contributions (TCA) All direct money payments from any source that represent gain or benefit to the individual are included as unearned income.

A contribution is cash received by a child, parent or relative with no intent to repay. A contribution may be received on a one-time basis or on regular or irregular intervals.

An allowance is considered a contribution when paid to an individual by a person outside the individual's assistance group. This would apply to money from a non-legal father when there is a legal father.

The individual must provide verification of the amount received as a gift or contribution. When written verification is unavailable, documentation must include the following information:

1. date oral verification received, 2. source of verification, 3. source of funds, 4. date made, and 5. the amount.

Standard verbal verification policy applies. If the individual is unable to obtain verification, discuss with the individual. The eligibility specialist should then use the best information available and record this in CLRC. 1820.1303 Trusts (TCA) Monies that are withdrawn from a trust fund by the assistance group are to be considered income in the month of receipt. The withdrawal is considered income to the assistance group without regard to whether the trust account is considered an available or an unavailable asset. Dividends and/or interest from the trust, which the assistance group has the option to receive or reinvest in the trust, are excluded as income. 1820.1304 Gifts (TCA) A gift may be excluded if it is infrequent or irregular. To be a gift, an item must meet the following requirements: