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UPDATED: FEBRUARY 2005

132

INCOME UNEARNED

DIVIDENDS AND INTEREST

Promissory Note or Other Loan Agreement - A promissory note held by the A/R pays interest or pays principal and interest in the same payment. The interest is unearned income.

Interest or dividend income derived from most resources is disregarded for SSI-related A/Rs.

Although most interest/dividends are treated as excludable income, there are some exceptions when interest and dividends are counted. Interest/dividend income is still countable for SSI-related A/Rs if generated by the following resources:

Retroactive SSI and Retirement, Survivors and Disability (RSDI) payments for nine months following the month of receipt;

Unspent State or local government relocation payments (but not federal or federally assisted funds) for nine months following the month of receipt;

Unspent tax refunds related to an earned income tax credit (EITC), paid either as a refund from the Internal Revenue Service or as an advance from an employer, or child tax credit (CTC) for the period beginning with the second calendar month following the month of receipt through the ninth month.

Excluded funds (i.e., from an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 which is exempt from taxation under Section 501(a)) from gifts to children under 18 years of age with life threatening conditions, if the funds are an in-kind gift of any amount that is not converted to cash, or if cash gifts, up to $2,000 in any year; and

Unspent State victims’ crime compensation payments for nine months following the month of receipt.

(MRG)