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Chapter: 2400 Budgeting Income Program: MSSI, SFP 39 2440.0372 Overpayments - Included as Unearned Income (MSSI, SFP) Unearned income includes amounts withheld by other benefit programs to recover overpayments. This policy applies to income received by a recipient as well as by a person whose income is subject to deeming.

An exception to this general policy applies when another program's overpayment occurred while the individual was receiving benefits from an SSI-Related Program and the overpayment was budgeted as unearned income at that time. In this situation, do not include as unearned income the amount being withheld to recover overpayment. This prevents the same income from being counted twice, as it was already counted when the overpayment was received and therefore should not be counted again. 2440.0500 INCOME AVERAGING (MSSI, SFP) Income averaging is a method used to adjust for fluctuations in income, as described in passages 2440.0501 through 2440.0512. 2440.0501 Averaging Fluctuating Income (MSSI, SFP) To average income, the eligibility specialist must consider the assistance group's anticipation of monthly income fluctuations over the entitlement period or eligibility review period. When averaging income, use the most recent consecutive four weeks or the best available information when it is representative of the individual's future earnings.

Example 1: At application, Mr. Smith provides the most recent consecutive four pay stubs from his job. He states he has not received any pay raises or significant changes in the number of hours he is working. As such, the eligibility specialist projects his future monthly earnings on an average of the four pay stubs he presented.

Example 2: At eligibility review, Mr. Smith provides the most recent consecutive four pay stubs from his job. The two more recent stubs indicate a $1.00 increase in his hourly rate. Since he has had a change in his hourly rate, the eligibility specialist does not use all four pay stubs to project his future earning potential. Instead, the eligibility specialist uses the two pay stubs which are representative of his future earnings and averages these to project his monthly earnings.

Note: Refer to passages 2440.0510 and 2440.0512 for specific policies for averaging income for ICP, Hospice, HCBS and HCDA. 2440.0502 When Income should be Averaged (MSSI, SFP) When computing a budget, income should be averaged whenever it is received:

1. in differing amounts; 2. at varying periods; 3. from sources such as tips, commissions, and overtime; 4. at a regular rate and schedule of pay, but to cover time periods which vary; or 5. in any combination of the above, or any time the same amount is not received at the same time each month, resulting in the amounts to be budgeted varying from month to month. Note: Refer to passages 2440.0510 and 2440.0512 for specific policies for averaging income for ICP, Hospice, HCBS and HCDA. 2440.0503 Unearned Income (MSSI, SFP) Unearned income such as contributions or child support payments may be averaged using the same procedures as for earned income.