Effective Date: November 1, 2021

Previous Policy (415-1 was previously found in 402-1 as of November 1, 2021)

Types of Unearned Income

1. Pensions and annuities include Railroad Retirement, Social Security, Black Lung benefits, Civil Service, private pensions, retirement funds, and investment annuities. When an individual qualifies for and receives periodic payments from a retirement plan, pension, or annuity, the payments are counted as income, not a conversion of an asset. When a pension or retirement account has been divided by a Qualified Domestic Relations Order, refer to 415-3 for treatment as income.

2. Disability benefits such as Social Security Disability Insurance, Workers Compensation, long-term disability insurance from an employer, and paycheck insurance. See 417-17 for excluded disability payments

3. Survivor's benefits from Social Security, Railroad Retirement, VA, etc. See 440-4 for how to consider Worker's Compensation.

4. Needs-based income such as Supplemental Security Income or Family Employment Program benefits. See 417-17 for needs-based payments

5. Unemployment compensation; Strike and union benefits . See 417-20 for disaster related unemployment compensation.

6. VA benefits . See 415-2 .

7. Child support and alimony . For child support, see the rules in 415-5.

8. Rental income and payments for the use of real or personal property. See 415-4 for rules on how to count this income.

9. Sales contracts . See 4 15-8 .

10. Payments to replace lost or destroyed property . See 415-9 .

11. Interest earned on loans made by the individual. If the individual has borrowed money, see 417-12 .

12. Inheritances . See 421 for lump sum policy.

13. Life insurance benefits and other death benefits. See 417-6 and 421 for exclusions.

14. Personal injury settlements . See 415-12 .

15. Medical insurance payments made directly to an individual. If the payment is not a refund for expenses the individual has already paid, or the payment from the medical insurance will not be collected by the Office of Recovery Services (ORS) as a third-party liability, the amount received is income to the individual. This includes payments from a long-term care insurance partnership policy made directly to the individual if it is not a reimbursement of paid expenses or will not be collected by ORS.

16. Educational assistance and college work-study. See the rules in 415-6 .

17. Tribal fund payments . See 417-14 and 415-13 .

18. Cash gifts , contributions, and church assistance. See the rules in 415-7 and 417 .

· For items received from medical or social service agencies that are not income, see 413-7 .

· Deposits to joint checking and/or savings accounts by a non-household member, including guardian, conservator, or representative payee accounts. See 413-5 .

19. Interest and dividends . See 415-7 .

20. Certain royalties paid for the use of property or natural resources. See 415-11 . If the royalties are received as part of self-employment or in connection with the publication of the individual's work see 419 .

21. Unearned Income in kind does not count as income.

22. Deferred Income and Other Deductions from Income. Deferred income is income that is received later than the normal payment date.

a. If an individual is supposed to be receiving unearned income, but says that the payments are being withheld, or deferred, for some reason, see 415-3 .

b. If wages or salaries are being deferred, see 419-1 .

23. Payments from a trust . How to count income from a trust is covered under 417-2 , which covers when payments must be counted as income.

24. Certain business income . Income received by a limited partner of a Partnership; income received from an S Corp when the individual is not actively engaged in the business; dividends received by a member of a Limited Liability Company which is being taxed as a corporation; and dividends received by a stockholder in a Corporation. See 413-6 for more information.

25. Prizes, winnings or awards. See 440-4 for treatment of Lottery and Gambling Winnings.