Page 9

Title 7: SNAP Page 31 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Types of Income Revised February 13, 2026 Taxes Withheld from Unearned Income Taxes Withheld from Unearned Income (Excluded) Public Law 107-171 Do not count taxes (such as FICA, state, and federal income taxes) that are actually withheld from non- government sources of unearned income. Count the net amount of income after the taxes were withheld. Do count taxes withheld from regular payments from a government source, such as unemployment insurance benefits and Social Security. Some types of unearned income may be taxable but do not have taxes withheld. Do not allow a deduction when taxes are not withheld. Tips (Earned) 7 CFR 273.9(b)(1) Count tip income as earned income. Household members should keep a calendar record of all tips they receive. Accept verification such as:  Pay stubs  Employer’s statement  Employee’s statement Training Allowances (Earned or Excluded) 7 CFR 273.9(b)(1)(iii) Count training allowances from vocational and rehabilitative programs recognized by federal, state, or local governments as earned income, as long as they are not a reimbursement. (Reimbursements are excluded.) Tribal TANF Payments (Unearned or Excluded) 7 CFR 273.9(b)(2) Count Tribal TANF payments as unearned income. Exclude any retroactive payments as a nonrecurring lump sum. See Lump Sum (Nonrecurring). See 7-A, Definitions for information about other policies that apply to recipients of Tribal TANF payments. Trust Income (Excluded or Unearned) 7 CFR 273.9(b)(2)(vi) If a trust is inaccessible to the household and therefore excluded as a resource, count any money withdrawn from that trust as unearned income. If trust income is used to pay expenses like rent or mortgage directly to a third-party on behalf of the household, count the payment as unearned income. Do not exclude it as a vendor payment. If such payments cover what would otherwise be a deductible expense, allow the household a deduction since you are counting the payment as income.

If the payment from a trust that is inaccessible and therefore excluded as a resource is a reimbursement, exclude the money that is a reimbursement. See Reimbursements.