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Title 7: SNAP Page 20 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Types of Income Revised February 13, 2026 Kinship Caregiver Payments Kinship Caregiver Payments (Unearned or Excluded) 7 CFR 273.9(b)(2) Treat kinship caregiver payments the same as foster care payments. See Foster Care Payments. Legally Obligated Money (Earned or Unearned) 7 CFR 273.9(b) and (c)(1)(iv) Legally obligated money includes money such as wages earned by a household member, a public assistance grant to which the household is legally entitled, and support or alimony payments that legally must be paid to a household member. When legally obligated money is earned, count it as earned income. When it is unearned, count it as unearned income. Count legally obligated money when it is garnished or diverted by the provider of the payment to a third party for a household expense. Do not exclude it as a vendor payment.

Legally obligated money is different from a vendor payment because legally obligated money belongs to the household. If the money was not diverted, the household would get it. Vendor payments are made with money that does not belong to the household.

Public assistance or general assistance payments that are potentially available to all eligible households are considered legally obligated and therefore counted as income. An example is a program that has a standard, basic allowance or component.

Assistance financed by state or local funds that is provided over and above the amount available to all eligible households is considered emergency or special assistance. It is excluded as income if provided to a third party on behalf of the household.

Count money received through a program that is not composed of various standards, allowances, or components, but rather provides assistance on an as-needed basis. However, do not count assistance that is provided as a loan.