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COMBINED MANUAL

ISSUE DATE 02/2022

UNEARNED INCOME

0017.12.03

Unearned income is income a client receives without being required to perform any labor or service as a condition of receiving the income. See 0017 (Determining Gross Income), 0017.06 (Excluded Income), 0017.12 (Determining if Income Is Earned or Unearned), 0017.15.84 (Contracts for Deed as Income).

Unearned income includes: ● Interest and dividends from investments and savings.

● Capital gains as defined by the Internal Revenue Service from any sale of real property.

● Proceeds from rent and contract for deed payments in excess of the principal and interest portion owed on property.

● Income from trusts, excluding special needs and supplemental needs trusts.

● Interest income from loans made by the participant or household.

● Cash prizes and winnings.

● Unemployment insurance income.

● Worker's Compensation.

● Retirement, survivors, and disability insurance payments. See 00.17.15.45 (Income From RSDI and SSI).

● Retirement benefits, including railroad retirement benefits.

● Disability benefits, including veterans disability benefits and workers compensation.

● Tribal per capita payments unless excluded by federal and state law. See 0017.15.09 (Income From Tribal Payments).

● Child and spousal support income. See 0017.15.03 (Child and Spousal Support Income).

Other types of income may be treated differently for each program. See 0017.15 (Specific Types of Income).

MFIP, DWP: For MFIP only: For when to count a HUD housing subsidy as unearned income, see 0017.15.99 (Housing Subsidy).

For how to count military income, see 0017.15.93 (Military Income).

Count: ● GA, RCA and cash benefits already issued. See 0011.21 (Receipt of Other Assistance).

● Nonrecurring income over $60 per calendar quarter unless earmarked and used for the purpose for which it is intended. See 0017.01 (Non-Recurring Income).

● Recurring prepaid credit card company gift cards. See RECURRING INCOME in 0002.55 (Glossary: Recipient...). See PREPAID CREDIT CARD COMPANY GIFT CARDS in 0002.49 (Glossary: Permanent…).

● Cash gifts as unearned income. See 0002.09 (Glossary: Calendar Month…).

Do not count unemployment insurance received by: ● Minor children. See 0002.41 (Glossary: Medically Necessary…).

● 18-year old students enrolled in secondary school.