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Iowa LIHEAP Policy and Procedures Manual Appendix C – Income Source Guide

Effective 09/01/2023

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which equals $416.67 per month. Only one month is to be counted as income. If the verification period is 12 months, $5,000 of income is to be counted.

Lump-Sum* (Recurring) This is income that will most likely recur over time and is income that is paid in one single payment instead of smaller more regular installments.

Example #1 Paige Turner was paid $6,000 last week and is applying for LIHEAP today. The verification period being used is the most recent 30 calendar days. The lump sum covered three months of work, which would equal $2,000 per month. Because 30-days verification is being used, $2,000 would be entered as income.

Example #2 Teri Dactyl receives money from an IRA once a year. In May, $5,000 was received and the application is occurring in October. The income verification period used is the most recent 30 calendar days. Recurring payments must be counted if received in the previous 12 months and pro- rated. Therefore $5,000 would be divided by 12, to equal $416.67/month. Because the verification period is 30 calendar days, one month’s income ($416.67) would be counted.

Example #3 Barry Cuda receives a monthly payment from a settlement that was put into a trust account. This is considered a lump-sum recurring payment.

Example #4 A LIHEAP customer receives a dividend payment once a year and earns income weekly. The customer is using the 30-calendar day verification period. The dividend is to be pro-rated for the 30-day period.

X

*Pro-rate for the verification period selected.