Page 70

70

income is derived from such a trade or sale.

3. Otherwise, if home produce is sold, but not as a trade or business, the income is unearned. If sold as a trade or business the income is earnings from self-employment.

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

Rule 8.11: Individual Interest in Indian Trust or Restricted Lands Exclusion.

A. These payments are defined as follows:

1. Includes certain Tribal per capita payments and other types of Tribal income distributed or held in trust by the Secretary of the Interior and monies received from the lease or sale of natural resources, and rent or lease income resulting from federally-protected rights on excluded Indian property.

B. These payments are treated as follows:

1. All such payments are considered a converted asset rather than income.

2. The $2000 annual income exclusion allowed for eligibles and deemors since January 1, 1994, on monies derived from individual interests in Indian Trust or restricted lands is no longer applicable since all such payments are considered a converted asset.

3. Gaming revenues which are distributed to individuals on a per capita basis are not included in this exclusion. Gaming revenues are countable income.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994); American Recovery and Reinvestment Act of 2009 §5009.

Rule 8.12: Japanese American and Aleutian Restitution Payments.

A. These payments are defined as follows:

1. Payments by the US government to individual Japanese-Americans or the spouse or parent of an individual of Japanese ancestry and Aleuts who were interned or relocated during WWII. This exclusion also includes payments made by the Canadian government to Japanese-Canadians interned or relocated during WWII.

B. These payments are treated as follows:

1. These payments are excluded from income and resources.

2. Effective July 2004, interest earned on unspent restitution payments is excluded from income.