Income Exclusions 400-28-65-15

(Revised 5/31/2023)

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NDAC 75-02-01.3-07

The following types of income are excluded:

Non-recurring lump-sum unearned payments are those payments that cannot be reasonably anticipated to be received again. These payments include, but not limited to:

Retroactive Social Security payments (whether it is paid in a lump sum or installments) Retroactive SSI (whether it is paid in a lump sum or installments) Retroactive adjustment payments from SSA due to changes in the individual’s earning record Retroactive unemployment benefits Retroactive TANF Retroactive railroad retirement benefits Retroactive Veteran’s benefits Retroactive Workforce Safety and Insurance Inheritance Gambling winnings Child support intercepted from Federal taxes Insurance settlements Mineral leasing bonuses and up-front payments Contests Employees retirement funds taken as a lump sum Severance Pay Income received from a trust - Submit SFN 1947 - Request for Trust Review, along with complete copies of all trust agreements to the Legal Advisory Division of the Department of Health and Human Services for review.

Earned income received as a non-recurring lump-sum payment including, but not limited to:

Bonuses Military re-enlistment bonuses

Tribal Payments and Individual Indian Monies (IIM) Accounts. 400-28-65-10-47 – This section includes the policy regarding the treatment of this income.

Reimbursements to a household member or payments to third-party for past or future expenses, including but not limited to:

Housing Assistance Program (HAP) and other subsidized housing authorities Housing and Urban Development (HUD) Rent and utility payments through the Emergency Rent Assistance Program (ERAP) Utility reimbursements made by the Department of Housing and Urban Development (HUD), Rural Housing Service, and Tribal Utility Payments including Tribal LIHEAP. General Assistance reimbursements - BIA or CSSB Supportive Services and Special Items of Need paid by the TANF Program (TANF, TANF JOBS, Diversion, Kinship Care, Transition, Post-TANF and Crossroads) Medical Child Care Employment and training Family Subsidy payments. Adoption Assistance Subsidies Payments directed by a divorce decree to a third party

Child Care reimbursements are counted as income.

Child support or spousal support of a TANF recipient assigned to the Child Support Division.

Children’s earned income.

In-kind income that is paid or given in goods, commodities, credits, including in-store credits or services instead of money when the individual does not have the option to receive a wage or monetary payment.

Dividends and Interest derived from savings and checking accounts and investments.

EXCEPTION: The interest portion of payments from investments, annuities, pensions, and other retirement plans will be considered countable income when withdrawn on a regular basis.

Money deposited into a checking or savings account when the client's name appears on a signature card, but does not have an ownership interest in the account.

Cooperative Distributions (patronage dividends)

EXCEPTION: Any portion of cooperative distributions that is income from the sale of goods is countable income.

Withdrawals from medical savings, health reimbursements and flexible spending accounts.

Foster Care Payments, including continuing education and job-training through PATH Inc.

Subsidized Guardianship Payments.

Money received from a benefit or fund raiser and disbursed by a third party for a household expense.

EXCEPTION: If the disbursement is given or made available to a household member the money is counted.

When a member of the household serves as a representative payee for Federal benefits (SSI, Social Security, Veterans Benefit) for an individual who is not a member of the household, the income is not considered available to the household.

All income, allowances, and bonuses received as a result of participation in the Job Corps Program.

Refunds of a deposit from rental units, apartments, storage units, utility companies, child care providers, etc.

Homestead Tax Credit refunds.

Property Tax relief.

Loans that require repayment. A loan must be verified with a written agreement between the parties executed at the time the loan was agreed upon.

When monies are received and used by a household for the care and maintenance of a non-household member, the portion of the payment that is identified as belonging to the non-household member is excluded. If the non-household member's portion cannot be identified, the payment is divided equally among the individuals for whom the payment is intended and the exclusion is applied to either the portion or the amount actually used for the non-household member's care, whichever is less.

Examples: The out-of-home allowance paid by TANF for children in boarding school or under the Voluntary Placement Program. TANF grant amount for students away at school (the student is not counted as a member of the household either). A parent is receiving court ordered child support of $350 per month for two children (prorated to $175 per child). The parent reports that one of the children went to live with the grandparents. The parent sends $175 of the monthly child support check to the grandparents for the care of the child. Only $175 would be counted as unearned income to the parent and remaining child. The $175 sent to the grandparents is not counted as income to the parent. If the parent does not send any of the $350 monthly child support to the grandparents, the $350 is counted as unearned income for the parent and remaining child. If the parent sends $200, only the prorated $175 would be excluded.

Census Income.

Trade Adjustment Assistance (TAA) - The following payments made to individuals under the Trade Adjustment Assistance (TAA) Extension Act of 2011:

Training Readjustment Allowances - A wage subsidy available in the form of weekly cash payments to workers who are enrolled in a full-time training course; Job Search Allowance – A cash allowance provided to workers who cannot find an available job within the commuting area, which is used to cover transportation costs, etc. Relocation Assistance – A cash allowance provided to workers who have to accept a job outside of their commuting area and relocate. Health Coverage Tax Credit – A tax credit offered to TAA participants to help pay for the health insurance premiums of the worker and their family.

Earned or unearned income set aside for the fulfillment of a Plan for Achieving Self-Support (PASS) under Title XVI of the Social Security Act (SSI).

Monetary gifts received by household members for special occasions such as birthdays, graduation, holidays, etc.

Infrequent or irregular income, both earned and unearned, that cannot be reasonably anticipated.

Gift Cards and Gift Certificates.

National School Lunch Act provides assistance to individual through the following programs: School Lunch Program Summer Food Service Program for Children Commodity Distribution Program Child and Adult Care Food Program (reimbursements to child adult care providers such as Heartland) (42 USC 1760 (e))

Child Nutrition Act provides assistance to children through the following programs: Special Milk Program School Breakfast Program Special Supplemental Food Program for Women, Infants, and Children (WIC) (42 USC 1780 (b))

Uniform Relocation Assistance and Real Property Acquisition Policy Act establishes minimum standards for federally funded programs and projects that require the acquisition of real property (real estate) or displace persons from their homes, businesses, or farms. (42 USC 4636)

All payments to volunteers under the National and Community Service Act which includes payments from the following programs:

Americorps (Americorps State and National Americorps VISTA Americorps NCCC (National Civilian Community Corps)) Retired Senior Volunteer Program (RSVP) Foster Grandparents Program Senior Companion Program

42 USC 5044 (f) 42 USC 5058

Disaster Relief Act - Federal major disaster and emergency assistance and comparable disaster assistance provided by States, local governments, and disaster assistance organizations. This includes payments such as Federal Emergency Management Assistance (FEMA) payments, Emergency Unemployment Benefits, Red Cross and Salvation Army. (42 USC 5155 (d))

Allowances, earnings, or payments received under WIOA or Youthbuild EXCEPTIONS: Earnings of individuals who are 19 or over or under 19 and not under parental control are counted as earned income.

Low-Income Home Energy Assistance Act - LIHEAP payments paid directly or indirectly on behalf of the LIHEAP household. 42 USC 8624 (f)

Supplemental Nutrition Assistance Program (SNAP) – Benefits received from SNAP are excluded. 7 USC 2017 (b)

Child Care and Development Block Grant Act - Child Care Assistance Program payments paid directly or indirectly on behalf of the Child Care Assistance Unit. Payments received by providers are counted as self-employment income. (42 USC 9858q)

Federal funded Student Financial Assistance - All educational loans, grants, scholarships and stipends that do not require work participation and wages earned under a work study program. State and local funded Student Financial Assistance is also excluded by State Policy.

EXCEPTION Educational-related income from internships, or stipends, teaching assistantships, or fellowships which require work participation to receive the income is counted as earned income.

Title IV aid includes:

Pell or BEOG grants. Supplemental Education Opportunity Grants (SEOG). Stafford Loan (formerly Guaranteed Student Loan). PLUS/DEAL loans. Perkins Loans (formerly NDSL). Federal work study income. Bureau of Indian Affairs Grant Program. High School Equivalency Program (HEP). College Assistance Migrant Program (CAMP). Upward Bound (Trio Grants). National Early Intervention Scholarship and Partnership Program. Stipends funded until Title IV. Indian Vocational Education Program (IVEP)

Aid that is federally funded but not under Title IV includes:

Workforce Investment Opportunity Act (WIOA). Veteran’s benefits or other benefits through the United States Armed Services. Reserve Education Assistance Program (REAP) Recruitment/Retention of American Indians Into Nursing (RAIN) Education funds received through the John H. Chafee Foster Care Independence Program.

Aid that is not federally funded includes:

SELF loan program. State work study income. Division of Rehabilitation Services.

20 USC 1087uu

Reduction in basic pay for veteran's educational assistance - Any amount by which the basic pay of an active duty or selected reserve member is reduced for educational assistance.

The funds are a pre-tax deduction from the service member's gross pay and are identified as a Montgomery GI Bill (MGIB) deduction.

38 USC 3011 (b)(3) and 38 USC 3012 (c)(3)

The Older Americans Act provides assistance to individuals through the following programs:

Experience Works (Green Thumb) National Council on Aging National Council of Senior Citizens American Association of Retired Persons U. S. Forest Service National Association for Spanish Speaking Elderly National Urban League National Council on Black Aging

Payments to certain United States citizens of Japanese ancestry, resident Japanese aliens, and eligible Aleuts made under the Restitution for World War II Internment of Japanese-Americans and Aleuts.

50 USC appendix 1989b-4(f-2)

50 USC appendix 1989c-5(d-2)

Radiation Exposure Compensation Act

42 USC 2210 (h) (2)

State or Federal tax refunds and Earned Income Tax Credits (EITC) 26 USC 6409

Crime Act - compensation paid through a crime victim’s compensation program. (42 USC 10602 (c))

Individual Development Accounts - funds (including interest accruing) in an individual development account. (42 USC 604 (h) (4) & 42 USC 604nt Section 415)

Vietnam Veterans - the following payment made to the children of Vietnam veterans:

Children of Vietnam Veterans Born with Spina Bifida

Children of Women Vietnam Veterans Born with Certain Birth Defects

Children of Certain Korea Service Veterans Born with Spina Bifida

(38 USC 1833 (c))

P.L. 108-447 - Combat Pay Additional monies received by a household as the result of the deployment of a service member to a designated combat zone. To determine the amount of service member's income that will be disregarded, compare the amount received before deployment and the amount received after the deployment. The difference between the two amounts is the amount that will be disregarded. Combat Zone Tax Exclusion Areas - Executive Order 12744 (effective January 17, 1991)Arabian Sea Portion that lies north of 10 degrees North Latitude and West of 68 degrees East Longitude

Bahrain Gulf of Aden Gulf of Oman Iraq Kuwait Persian Gulf Qatar Oman Red Sea Saudi Arabia United Arab Emirates Direct Support of EO 12744 Turkey effective January 1, 2003 - December 31, 2005 Israel effective January 1 - July 31, 2003 Eastern Med effective March 19 - July 31, 2003 Jordan effective March 19, 2003 Egypt effective March 19 - April 20, 2003 Executive Order 13239 (effective September 19, 2001 Afghanistan Direct Support of EO 13239 Pakistan effective September 19, 2001 Tajikistan effective September 19, 2001 Jordan effective September 19, 2001 Incirlik AFB effective September 21, 2001 - December 31, 2005 Kyrgyzstan effective October 1, 2001 Uzbekistan effective October 1, 2001 Philippines (only troops w/orders that reference OEF) effective January 9, 2002 Yemen effective April 10, 2002 Djibouti effective July 1, 2002 Somalia effective January 1, 2004

Executive Order 13119 (effective March 24, 1999)

Public Law 105-21 Establishing Kosovo as Qualified Hazardous Duty Area (March 24, 1999)

The Federal Republic of Yugoslavia (Serbia/Montenegro) Albania The Adriatic Sea The Ionian Seas north of the 39th parallel

Public Law 104-117 Establishing a Qualified Hazardous Duty Area (November 1995)

Bosnia Herzegovina Croatia Macedonia