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Page | 141 When the next renewal/six month report is received, verification of the income will be requested, and the income will be budgeted at that time.

The same methodology is used if the child graduates, drops out, or otherwise loses his/her half- time school attendance.

If a new hire hit is received for a child turning 18 in an interim month, we would treat this just like any other new hire hit. (See section 8403 for how to act on new hire hits.)

8312 NON-RECURRING LUMP SUM PAYMENTS

Nonrecurring lump sum payments such as, but not limited to, income tax refunds, rebates or credits, retroactive lump sum Social Security, SSI, TANF, one-time charitable cash donations, gifts received for non-recurring occasions, railroad retirement benefits or other payments; retroactive lump sum insurance settlements; and refunds of security deposits on rental property or utilities are all excluded as income. These payments are considered a resource in the month received, unless excluded by other Federal laws.

SSI and SS retroactive disability payments may be paid in monthly installments for individuals who are disabled because of drug addiction or alcoholism. The payments are not considered lump sum payments and are countable income as long as they are made for addiction or alcoholism disabilities. If a large SSI retroactive payment is made in installments (not more than 3 installments in a 6 month interval) and is not made for drug addiction or alcoholism caused disabilities, the payments are considered lump sum and not counted as income.

Retroactive SSI payments made to individuals under 18 may be direct deposited into a dedicated account with a representative payee. These payments may also be paid in installments. These payments are considered lump sum payments and not counted as income.

8313 SELF-EMPLOYMENT COSTS

The cost of producing self-employment income is excluded.

Example: A child graduates May 25. The child’s earned income would be updated to show as countable for July benefits (observing 10 day notice). If there is no primary source, the income would not be budgeted until a primary source is received. Example 1: Mark turned 18 on May 5th. It was previously reported he was working at Taco John’s, but the income was not verified. The household’s 6 month report is due in August. Verification of his income would be requested and budgeted for the August’s report month.

Example 2: Mark turned 18 on May 5th. Income for Mark from Taco John’s was previously reported and verified at the Renewal in March. Since this was a future known change (as it was reported at renewal) the AMND code would be used in June to budget Mark’s income.