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LUMP SUM INCOME

ISSUE DATE: 04/2017

Some examples of lump sums are:

Winnings. See WINNINGS in 0002.73 (Glossary: Victim...).

Inheritances.

Insurance settlements. Also see 0017.06 (Excluded Income).

Retroactive payments of RSDI, VA, Unemployment Insurance, etc.


For additional information on counting lump sums as income and budgeting lump sums, see 0022.15 (Counting Lump Sums as Income), 0022.15.03 (Budgeting Lump Sums in a Prospective Month), 0022.15.06 (Budgeting Lump Sums in a Retrospective Month).

Also see 0015.60 (Evaluation of Lump Sums).


MFIP:

Lump sums may be earned or unearned income.

For lump sum income follow 0017.01 (Non-Recurring Income).

Treat employer contributions to pension or retirement funds as lump sum unearned income when the client liquidates the funds in 1 payment.

Do not count the following as lump sum income:

Any costs associated with getting unearned lump sum income, such as attorney fees, or medical fees.

Mandatory deductions such as federal and state income taxes from unearned lump sum income.

Tax refunds, credits, and rebates. Tax refunds include federal and state withholding refunds and homeowner/renter property tax refunds. Tax credits include Earned Income Credit (EIC), Federal Child Care Credit, and Minnesota Working Family Credit.



Treat a lump sum as income in the month received.

For information on counting lump sum payments as assets, see 0015.60 (Evaluation of Lump Sums). Also see 0015.63 (Evaluation of Pension and Retirement Plans), 0017.15.42 (Interest and Dividend Income).

For lump sum income received by an applicant during the 1st 2 months, combine the income with other income from that budget month and determine the grant prospectively.

For lump sum income received by a participant after the 1st 2 months, combine the income with other income from that budget month and determine the grant retrospectively.

When the lump sum combined with other income is less than the Transitional Standard for the applicable payment month, the assistance payment must be reduced according to the amount of the counted income. When the counted income is greater than the Transitional Standard, suspend for the payment month. See 0022.18 (Suspensions).

A lump sum may not be carried over into a subsequent month. Count any funds that remain after the lump sum is budgeted toward the asset limit.

A lump sum is counted toward the asset limit in the 3rd month after the month of receipt.


DWP:

Follow MFIP. After the initial DWP determination, do not count any unanticipated income the unit may receive.


SNAP:

Exclude lump sums as income. Treat them as assets. See 0015.60 (Evaluation of Lump Sums).

Work bonuses are not lump sums. They are earned income in the month received.

RSDI installment payments of more than 1 month are not lump sums. They are unearned income in the month received.

Initial refugee resettlement funds may NOT be counted toward income for any program, whether received as cash or as vendored third party payments. See 0030.01 (Local Resettlement Agencies).

For SSI payments, see 0017.15.45 (Income From RSDI and SSI).


MSA:

For SSI recipients, no county action is required.

For non-SSI recipients follow GA.


GA:

Lump sums may be earned or unearned income.

For lump sum income follow 0017.01 (Non-Recurring Income).


GRH:

Follow MSA for aged, blind, or disabled clients.

Follow GA for all other adults.

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