Page 183
MS 5220 [6]
11.Income of non-household members, including an ineligible student, is handled as follows:
a. Cash payments from the non-household member to the household are considered income unless the non-household member is making vendor payments.
b. Income deemed to a community spouse, from an institutionalized spouse in a long-term care facility, is countable in the community spouse's case.
c. When the earned income of one or more household members and the earned income of a non-household member are combined in one wage, the income of the household member(s) is determined as follows:
1) If the household's share can be identified, that portion due to the household is counted as earned income. 2) If the household's share cannot be identified, prorate the earned income among all those for whom it was intended to cover and count that pro-rated portion to the household.
12.Severance pay received after termination of employment is considered unearned income.
13.Recurring annual Tobacco Settlement Agreement payments are counted as follows: a. Prorate Tobacco Settlement payments over a 12-month period for the following SNAP recipients: 1) Households actively engaged in farming either as owners or tenants, who are considered self-employed. In this situation, the income is entered under “Farm” self-employment, and the “number of hours” worked greater than zero is entered; this way, it will be counted as earned income. 2) Households that previously farmed tobacco and are leasing their land to others, who are also considered self-employed. In this situation, the income should be entered under “Rental” self- employment; since hours worked are under 20, it is counted as unearned income. b. Count the payments in their entirety in the month received or average the payment over the period of time the income is intended to cover for households that do not own the land and are leasing their quotas to third parties to grow tobacco. This type of arrangement is not considered self-employment. Enter as Other Unearned Income and give the recipient the option of selecting the budgeting process that is to the household’s advantage.