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Employer-Paid Benefits The Employer-paid or union-paid portion of health insurance or other employee fringe benefits are excluded as income. Reimbursements for work or medical expenses (travel or mileage) are not eligible as income and should be deducted from any YTD gross wages. Insurance Settlements A one-time, lump sum insurance settlement payment for injury is excluded as income. Retirement A lump sum pension or retirement payment that represents the employee's contribution and/or interest is excluded as income. Inheritance An inheritance received in a lump sum is excluded as income. Gifts A cash gift to an individual that does not represent household support is excluded as income. Non-Recurring, Lump Sum payments Non-recurring, or lump sum, payments to a household (not an individual) for household support (living expenses) should not be counted as income. These payments are similar to gifts, which are not counted. Savings Instruments Principle That portion of any savings instrument which represents the individual’s contribution to the principle is never considered as income. Saved money has already been counted as the household received it. Capital Gains A capital gain is a rise in the value of an investment or real estate that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. Capital Gains are not considered income. Tax Refunds Income tax refunds and Earned Income Tax Credits are excluded as income. Veterans Reduction Assistance Allowance That portion of Veterans Reduction Assistance Allowance which represents the veteran's contribution to the allowance is excluded. Veterans who served before December 31, 1977, have not made a contribution toward their benefits. This contribution will not exceed $2,700 and can be identified by the Veterans Administration (VA) when verifying benefits. To verify benefits, call 1-800-827-1000 and provide the applicant’s VA file number. A Social Security number may be used as a last resort. The VA will verify the educational expenses (i.e., tuition, books, fees, transportation) which are excluded from income.
Veteran Clothing Allowance