TANF and SNAP

Lump-sum child support payments received or anticipated to be received more often than once a year count as unearned income in the month received. Lump-sum child support payments received once a year or less frequently count as a resource in the month received.

Lump-sum payments on child support arrears are received from the following sources:

IRS intercept program — This occurs when the IRS intercepts the absent parent's tax refund to pay child support arrears.

Excess payment — When the OAG sends a second excess payment to the recipient, HHSC receives the payment date and amount.

OAG adjustments — HHSC receives a PBS-OAGF1 Report, Clients Receiving a Lump Sum Adjustment from OAG-Possible Ineligibility. HHSC produces this report when the OAG adjusts an EDG that results in a lump-sum distribution to the recipient. Adjustments may occur when federal distribution changes are implemented, court orders are modified, or EDG errors are corrected.

Lump-sum payments on current child support are received from the following sources:

Advance pay — Advance pay occurs when the absent parent is current on obligated amounts and voluntarily pays an amount in advance of the obligated monthly amount. Example: The absent parent is obligated to pay $200 a month and is current on that amount. The absent parent loses their job and receives a severance payment of $2,000 and decides to pay $1,000 in advance to cover child support for the next five months. The payment to the recipient counts as a resource in the month received.

Future pay — Future pay occurs when the absent parent is current on obligated amounts and voluntarily and routinely pays an extra amount over the obligated amount. Example: The absent parent is obligated to pay $200 a month and is current on that amount. The absent parent pays $25 extra each month (or some months). The OAG releases the money as received. This payment counts as unearned income if staff anticipate that it will be received more often than once a year.