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A. The following is not an exhaustive list of income that does not count but represents the types more commonly encountered. If not addressed herein, IRS tax rules provide the governing policy.

1. Alimony is deducted from the income of the payer and is therefore a type of non- countable income; however, alimony payments received by an individual count as income.

2. Black Lung benefits are not taxable income and are not counted as income.

3. Child Support benefits are not counted as income to the payee or the child(ren) for whom it is paid; however, Child Support is not a deduction allowable from the income of the payer.

4. VA Benefits are not counted as income. Benefits paid by the Department of Veterans Affairs are not taxable income.

5. Workers’ Compensation Benefits are not taxable income and are not counted as income.

6. Life Insurance Proceeds paid due to the death of the insured person are not taxable income and are not counted as income, unless the policy was sold or reassigned for a price.

7. Accelerated Death Benefits paid under a life insurance contract prior to the insured’s death are excluded from income if the insured is terminally ill.

8. Public Assistance Benefits, such as SSI, TANF, and the value of assistance from programs such as SNAP and WIC are excluded from income. IV-E Foster Care and Adoption Assistance payments are also excluded from income.

9. Disaster relief income or grants from a qualified disaster relief payment, meaning the payment is to reimburse certain necessary living expenses following a federally declared disaster, are excluded from income. Source: 42 CFR § 435.603 (Rev. 2012)

Rule 12.2: Excluded Income from Specific Programs Providing Assistance

A. The following are payments excluded from income that originate from a specific program that provides assistance payments.

1. Home Affordable Modification Program (HAMP). Pay-for-Performance Success Payments under the HAMP are not taxable income and are not countable.

2. Hardest Hit Fund and Emergency Homeowners’ Loan Program payments. Payments from a State Housing Finance agency that can be used to pay mortgage interest or payments from Housing and Urban Development for an Emergency Homeowners’ Loan Program (EHLP) are not countable as income.