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1. Workers’ Compensation (WC) payments are awarded to an injured employee and his/her survivor(s) under federal and state WC laws, such as the Longshoremen and Harbor Workers’ Compensation Act and may be made by a federal or state agency, an insurance company or an employer.

B. This type of income is treated as follows:

1. The WC payment less any expenses incurred in obtaining the payment is counted as unearned income.

a) Any portion of a WC payment or award that the authorizing or paying agency designates for medical, legal or other expenses attributable to obtaining the WC award is not income.

b) If an individual alleges having incurred expenses that exceed the amounts designated for expenses, or to which no amount was designated, the normal rules pertaining to the expenses of obtaining income apply.

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

Rule 7.29: Temporary Assistance for Needy Families (TANF).

A. This type of income is defined as follows:

1. TANF provides a monetary grant to families under a program that uses income as a factor of eligibility and is partially funded by federal block grants.

B. This type of income is treated as follows:

1. TANF payments are considered income based on need (IBON).

2. If a Medicaid client is included in the TANF family unit, the client’s share of the TANF grant is counted dollar for dollar as income and the $50/$20 general income exclusion does not apply.

3. TANF incentive payments, additional payments made as a reward for compliance with program requirements, are also IBON and the $50/$20 general income exclusion does not apply.

4 Participation allowances for the TANF program, such as those for transportation, are reimbursements.

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

Rule 7.30: Bureau of Indian General Assistance (BIA GA).