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Previous Policy
Some payments or benefits an individual receives are not income and therefore are never counted as part of the individual's income to determine eligibility. Payments and benefits that are not income include:
1. Medical and Social Services, Related Cash and In-Kind Items as follows:
a. From a governmental agency that provides medical or social services:
· cash for medical or social services is not income (this does not include payments under TANF, VA, BIA or similar income assistance)
· in-kind medical or social services items (including food or shelter)
b. From non-governmental agencies. Payments received as sickness and injury benefits may or may not count, depending on the source.
· Payments from the following sources are exempt:
o Black Lung benefit payments,
o Federal Employee’s Compensation Act (FECA), taxable amounts include payments received under FECA as continuation of pay for up to 45 days while a claim is being decided,
o Qualified Indian Health Care benefits,
o Compensatory damages received for physical injury or sickness,
o Benefits received under an accident or health insurance policy
o Disability benefits received for loss of income or earning capacity as a result of injuries under a no-fault care insurance policy.
o Payments received for permanent loss or loss of use of a part or function of the body, or for permanent disfigurement. This compensation must be based only the injury and not on the period of absence from work.
o Reimbursement for medical care may be exempt, unless it is received as an advance reimbursement or loan for future medical expenses from an employer without regard to whether the individual suffered a personal injury, sickness, or incurred medical expenses.
· Payments from the following sources are not exempt:
o Payments received as sick pay under the Railroad Unemployment Insurance Act,
o Payments from FECA (see above) received as a continuation of pay for up to 45 days while a claim is being decided,
o Payments received as an advance reimbursement or loan for future medical expenses from an employer without regard to whether the individual suffered a personal injury, sickness, or incurred medical expenses,
o Reimbursements received under an employer's plan for expenses incurred before the plan was established are included in income.
2. Personal Services such as mowing the lawn, shopping, baby-sitting, housecleaning, or other similar services, which are done sporadically, without the intent to establish a self-employment business, and render nominal amounts of money.
3. Rebates, refunds, or return of money already paid is not income when received. Rebates do not include a return on an investment, such as dividends on a business interest.
4. Amounts refunded from taxes already paid.
5. Credit life or credit disability insurance payments because these payments are made directly to the loan or mortgage company. The value of food or shelter received as a result (i.e., the credit life pays the mortgage while someone is disabled).
6. Proceeds from a bona fide loan agreement that the individual is expected to repay. However, if the person lending the money receives interest, the interest received is income.
a. For Educational Loans see 403-7 .
b. Reverse equity mortgages . Reverse equity mortgages are loans to the homeowner. The monies received are not income in the month of receipt. Under reverse equity mortgages, homeowners may borrow money against the value of their home and receive a lump sum payment, or monthly payments for a certain period of time. The mortgage holder will hold a lien on the property until repayment is made. Repayment can be when: 1) the house is sold; 2) the house is turned over to the mortgage holder; or 3) the owners die and repayment is taken from the settlement of the estate.
c. The proceeds received from a loan become a countable resource in the month following the month of receipt, if retained. This includes the proceeds from a home equity loan or a reverse equity mortgage.
7. Payment of a person's bills by a third party is not income.
8. Replacement of income that was lost or stolen.
9. An owed payment to the individual is not income if they return the un-cashed check or otherwise repay the money received in error.
10. Weatherization assistance (i.e., insulation, storm doors or windows, etc.).
11. Certain non-cash items are not income if the item will become a wholly or partially excluded non-liquid resource the following month. For example, a individual in a wheelchair receives a van with a wheelchair lift paid for by donations raised by his church. This is the individual's only vehicle and is excluded the month after he receives it.
12. Certain Employee benefits. Payments made by employers on behalf of employees that are not earnings and are not available to meet food or shelter costs are not income. For example, payments to a retirement plan (not including a nonqualified plan), medical insurance and FICA taxes paid by the employer.
13. TPL. Payments from a medical insurance policy are not income to the individual if they are paid directly to medical providers or collected by the Office of Recovery Services as a third party liability.