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A. Unearned income includes amounts withheld because of a garnishment or to make certain other payments (such as Medicare premiums).

B. Unearned income includes amounts withheld whether the withholding is:

1. Purely voluntary;

2. To repay a debt; or

3. To meet a legal obligation.

C. This policy does not apply to amounts withheld to pay the expenses of obtaining the income since such amounts are not income.

D. The following are types of items for which amounts may be withheld, but withheld amounts are considered income received:

1. Federal, state or local income taxes;

2. Supplementary Medical Insurance (SMI), Medicare Part B;

3. Loan payments;

4. Child support;

5. Life or health insurance premiums;

6. Union dues;

7. Bank charges; or

8. Garnishments.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 6.7: Return of Previously Deducted Money.

A. If any of the types of deductions listed in Rule 6.6 above are later returned to the individual by the original source, agency or organization which received the deduction (e.g., refund of Medicare premiums), the refunded amounts cannot again be income.

B. Refunded amounts can be available resources when received and would be counted if retained into the following month.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).