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Income is broken down into two categories for budgeting purposes: earned income. unearned income.

Earned income is payment received in the form of: • Wages, salaries, and commissions from an employer or from self-employment. • In-kind earnings such as goods or services received in lieu of wages are also considered earned income. • It can also be profits from the sale of farm crops, livestock, or poultry.

Unearned income is income for which there is no performance of work or services. Unearned income may include: • retirement, disability payments, unemployment/worker's compensation, and so forth; • annuities, pensions, and other regular payments; alimony and support payments; • dividends, interest, and royalties; • proceeds of life insurance policies (when paid in installments); • winnings, prizes, and awards; gifts and inheritances; and • benefits administered through the Social Security Administration. 2805.10.00 AVAILABILITY OF INCOME

Income is considered available when it is actually received and/or when the individual has the ability to make the income available. Refer to Section 3405.00.00 regarding the income budgeting principles. 2805.15.00 OWNERSHIP OF INCOME

The individual who has title to the proceeds of a payment or property is the individual who "owns" the income.

If the income is received by an individual's legal representative or guardian, the individual still owns the income.

When a legal representative receives the income, ownership through one of the following documents must be verified: • the designation on the payment, check, award letter, or other document; or • the title to the property. 2805.15.05 ESTABLISHING INCOME OWNERSHIP

The ownership of all sources of income must be determined according to the criteria listed below. This process also establishes the income attributable to each individual to be used in budgeting. The DFR should consult with their legal staff when necessary to determine income ownership, particularly when trust funds are involved.