6200 Unearned Income

Unearned income is any income that is not earned and may be derived from benefits (unemployment compensation, Social Security, VA, etc.), pensions, contributions, and settlements. Unearned income received or reasonably assured to be received in a month or in the eligibility base period shall be considered.

Gross unearned income shall be considered unless exempt as noted below.

Income producing costs can be deducted from gross unearned income to consider the net amount. This could include such things as property taxes and insurance payments on income producing equipment, vehicles, or property as well as interest paid on property purchased on an installment plan. It would not include such things as income taxes, garnishment, depreciation, or payments toward principal on property purchased on an installment plan. Also, see 7122.1 for guidelines in establishing such costs on unearned income arising from a self-employment enterprise. It is the responsibility of the client to provide verification for income producing costs. In allowing for such costs, it is not the intent of EES programs to pay debts, subsidize a nonprofit activity, or treat income on the basis of IRS policies. See also 7122.3 concerning special self-employment income counting rules for medical assistance.