1600.2.54 Legally Obligated Money

When legally obligated money is earned, count it as earned income.

When it is unearned, count it as unearned income.

Count legally-obligated money when it is garnished or diverted by the provider of the payment to a third party for a household expense. Do not exclude it as a vendor payment .

Legally obligated money includes money such as wages earned by a household member, Social Security, SSI, or a Reach Up payment to which the household is legally entitled, and support or alimony payments that legally must be paid to a household member.

Legally obligated money is different from a vendor payment because legally obligated money belongs to the household. If the money was not diverted, the household would get it. Vendor payments are made with money that does not belong to the household.

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1600.2.54 Legally Obligated Money

Official source

When legally obligated money is earned, count it as earned income.

When it is unearned, count it as unearned income.

Count legally-obligated money when it is garnished or diverted by the provider of the payment to a third party for a household expense. Do not exclude it as a vendor payment .

Legally obligated money includes money such as wages earned by a household member, Social Security, SSI, or a Reach Up payment to which the household is legally entitled, and support or alimony payments that legally must be paid to a household member.

Legally obligated money is different from a vendor payment because legally obligated money belongs to the household. If the money was not diverted, the household would get it. Vendor payments are made with money that does not belong to the household.