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MS 5220 [4]

Example 2: An individual works Monday through Friday. Friday is a holiday, and the individual receives a higher rate of pay for working on a holiday (i.e., time and a half). In this situation, the holiday pay the individual receives is not representative of ongoing income and would not be counted.

B. Unearned Income: Consider the following as unearned income:

1. Assistance payments from federal or federally aided public assistance programs such as Supplemental Security Income (SSI), Kentucky Transitional Assistance Program (KTAP), or other assistance programs based on need. Kinship Care (KC) payments are considered in the SNAP case as unearned income. Children who receive Kinship Care payments must be included in the SNAP household.

When it is determined that a SNAP benefits household member did not comply with the KTAP program, the actual amount of KTAP income received is counted in the SNAP case.

If a 310 penalty is imposed, the household's SNAP benefit allotment will be reduced by 25 percent.

2. Annuities, lottery or gambling winnings paid annually, pensions, retirement, veteran's or disability benefits, including Agent Orange payments issued by the Department of Veterans Affairs, worker's compensation, unemployment insurance benefits (UIB), including the dependent allowance that other states receive as part of their UIB compensation, social security benefits, strike benefits and foster care payments for children or adults that are included in the household.

Prorate over a 12-month period, annually paid annuities, and lottery or gambling winnings.

3. Count support or alimony payments made directly to the household by non- household members or by the Department of Child Support Services (DCSS) as income.

a. Exclude corrective payments made in a later month to make up for missed payments as a nonrecurring lump sum payment. Count only the current month's payment as income. If the absent parent pays on a consistent basis more each month than the court-ordered amount to make up for arrearages, and the corrective payment has not already been counted, the corrective payment is no longer nonrecurring. The corrective payment has become the regular payment, and the entire amount must be counted as unearned income.

b. Escrow is support that DCSS collects and holds because the KTAP amount is exceeded by the child support payments. Kentucky Automated Support and Enforcement System (KASES) generates a "Notice of Payment of Child Support Collections to KTAP Recipient" form to the local office. The form includes the amount of support and the month the support is forwarded to the recipient. If there are