Page 8

8

1. Effective March 9, 2005, clothing is no longer considered a basic need for SSI purposes.

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

Rule 2.2: Relationship of Income to Resources.

A. The following must be considered in determining the relationship of income to resources:

1. Anything received in a month, from any source is income to an individual, subject to the SSI definition of income.

2. Anything the individual owned prior to the month under consideration is subject to resource counting rules.

3. The same item cannot be counted as both a resource and income in the same month. An item received for the current month is income for the current month only. If held by the individual until the following month, that item is subject to resource counting rules. Any exceptions are noted in the discussion of the particular type of income involved.

a) Example: Mr. Jones receives his Social Security check in March. It is directly deposited into his checking account. Count the Social Security check as income in March and subtract the deposit from the checking account to determine how much he has in resources for March. If Mr. Jones carries all or part of the check into April, the remaining amount is counted as a resource.

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

Rule 2.3: Types of Income.

A. Income is either earned or unearned.

B. Different rules apply to each type of income.

C. Some examples of the types of income are listed below:

1. Earned income consists of the following types of payments:

a) Wages;

b) Net earnings from self-employment (NESE);

c) Payments for services performed in a sheltered workshop or work activities center;

d) Royalties earned by an individual in connection with any publication of his work and any honoraria received for services rendered.