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Families and Children Manual Policy Manual Number: 010.020 Section: Financial Eligibility Chapter: Countable and Excluded Income
September 1, 2026 Division of Tenncare 12 v. Federal Emergency Management Agency (FEMA) Non-Disaster or Emergency FEMA funds made to a household to pay for rent, food and utility assistance when there is no major disaster or emergency declaration are countable income.
vi. Gambling, prizes or awards Compensation received from gambling, prizes, or awards is countable. The way in which gambling, prizes, or awards are received impacts how the compensation is counted. Gambling, prizes and awards can be received in installments, a lump sum, or as a non-cash prize. Certain winnings are considered Qualified Winnings and are counted based on the Qualified Winnings Formula. Winnings that do not use the Qualified Winnings Formula are considered Non-Qualified Winnings. 1. Non-Qualified Winnings
Monetary gambling winnings, including lottery winnings, which are received in installments are considered recurring income and countable in the month received. When winnings are received in installments, they are considered Non-Qualified Winnings. When winnings are received as a lump sum, they are considered Qualified Winnings, except for non-cash prizes. a. Non-Cash Prizes Non-cash prizes are also considered Non-Qualified Winnings. Unlike a cash prize, non- cash prizes will begin to depreciate immediately. Examples of a non-cash prize would be a boat or car. The fair market value of non-cash prizes are considered lump sum income that is countable in the month received. 2. Qualified Winnings Qualified Winnings include Qualified Lottery Winnings and Qualified Lump Sum Income and are counted differently than other lump sum income. Qualified Winnings are not just countable in the month received. A specific formula must be followed to determine how much income is counted in the month received and up to 120 months. Additionally, Qualified Winnings are treated differently for the individual receiving the winnings and the other household members. Qualified Lottery Winnings are lump sum payments from a sweepstakes, lottery, or pool, are conducted by a state agency, the authority of state law, or by a multistate lottery association. Qualified Lump Sum Income is monetary winnings from gambling received as a lump sum. Monetary winnings from gambling include betting pools, wagers with bookmakers,