3.2.5.1.1 Annual Lump Sum Payments

Income received on a yearly basis or less often should be converted to a monthly amount. The agency should count only income that is predictable in amount and frequency, such as land contract income or income from a trust fund. Count the prorated income beginning in the month it is received.

EXAMPLE: Joan receives $900 every six months on a land contract. To create an average monthly amount, divide $900 by six months (900/6 = $150). Compare the averaged monthly amount of $150 plus any other sources of income against the 115 percent gross income test to determine financial eligibility.