Page 65

Vermont Department for Children and Families Reach Up Eligibility Rules Economic Services Division 2200 64

lump sum payment of earned or unearned income.

1. The Department shall establish an overpayment for lump sum payments of child support for the month in which the payment was received, regardless of whether the household notified the Department with 10 days of receipt.

c. Lump sum payments shall be counted as income except for the following:

1. Insurance payments or similar third-party payments shall be excluded, if received for payment of medical bills or funeral costs, and used for those purposes;

2. Homeowner’s insurance payment shall be excluded if it is used to rebuild or repair the house or purchase a new one;

3. Money resulting from the conversion of an existing asset to a liquid asset shall be treated as a resource if the asset was acquired prior to the receipt of Reach Up benefits;

4. Money resulting from the sale of a vehicle shall be treated as a resource if acquired during receipt of Reach Up benefits;

5. Money that has been set aside in a trust fund, retirement account, or qualified child education savings account shall be treated as a resource and excluded (rules 2257); or

6. An income tax refund shall be treated as a resource, except for any portion that is a federal or Vermont Earned Income Tax Credit (EITC) refund.

i. EITC payments are disregarded both as income and as a resource (rules 2253 and 2257).

d. Lump sum payments received by the Reach Up household that are not excluded should be added together with all other monthly non-Reach Up income with applicable disregards subtracted. 1. When this total exceeds the household's need they will be disqualified for Reach Up benefits for the number of full months derived by dividing this total income by the need standard applicable to the Reach Up household.

2. If the Reach Up household reapplies for Reach Up benefits in the month following their disqualification period, any remaining income will be applied to the first month of eligibility. e. The disqualification period due to a lump sum payment may be recalculated if:

1. Any change of circumstances occurs during the disqualification period which, had the household been receiving Reach Up benefits, would have changed the benefit amount;

2. The Reach Up household deposits the lump sum payment, or a portion thereof, into an excluded savings account (rule 2257).

3. The Reach Up household incurs and pays for medical expenses that offset the lump sum payment; or 4. The income received has become unavailable to the Reach Up household under the following circumstances: