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305.4 TANF MANUAL 10/22 Page 25

B. Income From Social Security and Other Benefits - Monthly benefits received or anticipated to be received by members of the assistance unit, or individuals required to be in the assistance unit, must be counted as income.

Exceptions:

1. Educational benefits received from Veterans Administration. (See 305.4.A.10.)

2. Medicare Part B premium deducted from the Social Security or Railroad Retirement benefits of an individual who is also receiving Medicaid. In that case, the amount of benefits actually received, plus the amount of the Part B premium, is counted as income since Medicaid will pay the premium during the time the individual receives Medicaid.

See 305.2.B. to determine whether the gross monthly benefit or the actual benefit received should be counted for Social Security, Veterans’ benefits, Railroad Retirement or other retirement benefit, or Unemployment Compensation.

C. Lump Sum Payments - A lump sum is a nonrecurring payment which is received by a member of the assistance unit, or by an individual such as a stepparent or a parent of a minor caretaker, whose income must be considered in determining the eligibility of the AU.

Lump sum payments include payments for the accumulation of benefits for a prior period, including Social Security and Workers’ Compensation benefits; payments in the nature of a windfall, e.g., inheritances or lottery winnings; personal injury awards; a life insurance settlement; or income from any other nonrecurring source. Money received from the sale of a resource is not considered a lump sum.

Lump sum payments for casualty property losses for the repair or replacement of damaged/lost property will not be considered as countable income since the payment is designated to replace or repair the property. A casualty property loss is a loss caused by a sudden, unexpected event such as a car accident, fire, flood, or earthquake.

A lump sum payment which exceeds 130% of the federal poverty level for the household (AU plus other required members; see 401.2), or which causes the total income for the household to exceed 130%, must be counted as income. If the amount of the lump sum and the date it is to be received are reported in advance, the lump sum will be counted in the month it is to be received. Otherwise, the lump sum will be counted in the month following receipt or as soon as administratively possible following the report of the payment.

When an AU member owns a cryptocurrency resource, when converted to real currency, cryptocurrency and any other types of convertible virtual currency will be treated as a lump sum. (Note: To determine the equivalency of virtual currency to real currency, the fair market value of the virtual currency in United States dollars must be used as of the date payment is received.)

TANF Transmittal 75