Effective Date: November 1, 2021

No Previous Policy

A. Introduction

Lump sum payments are windfalls or retroactive payments of earned or unearned income. Lump sums include settlements from personal injury suits, insurance settlements, awards, winnings, and gifts. They also include lump sums consisting of Social Security and Railroad Retirement benefits, VA lump sums, unemployment compensation lump sums, and other one-time payments. Federal tax refunds, including refundable credits such as Earned Income Tax Credit (EITC) and Child Tax Credit payments are not lump sum payments. Payments that will recur, even if only once a year, are not lump sum payments.

B. Exempt Lump Sum Payments

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Effective Date: November 1, 2021

Official source

No Previous Policy

A. Introduction

Lump sum payments are windfalls or retroactive payments of earned or unearned income. Lump sums include settlements from personal injury suits, insurance settlements, awards, winnings, and gifts. They also include lump sums consisting of Social Security and Railroad Retirement benefits, VA lump sums, unemployment compensation lump sums, and other one-time payments. Federal tax refunds, including refundable credits such as Earned Income Tax Credit (EITC) and Child Tax Credit payments are not lump sum payments. Payments that will recur, even if only once a year, are not lump sum payments.

B. Exempt Lump Sum Payments