Nonrecurring income is cash received one time or on an irregular basis that cannot be reasonably anticipated. See Chapter 6.6 (Earned/Unearned Income) for information on counted nonrecurring income.

Nonrecurring income can be earned or unearned. Examples of counted nonrecurring income include nonrecurring child support arrears and gambling winnings.

Nonrecurring income received by CCAP recipients

Counted nonrecurring income must be annualized effective the date of receipt and continue to count for 12 months or 26 two-week periods from the date of receipt. The period between the date the counted nonrecurring income is received and 12 months or 26 two-week periods after receipt is the “annualization period”. See the MEC² User Manual for information about entering nonrecurring income on the lump sum page in MEC2.

Reported during the 12-month eligibility period

Families are required to report receipt of counted nonrecurring income during the 12-month eligibility period if the income puts the family over the maximum allowed for their family size (85% of SMI).

If counted nonrecurring income is reported during the 12-month eligibility period, follow guidance in Chapter 8.1.12 (Changes in Income or Expenses).

Reported at redetermination

At redetermination, families must report and verify any counted nonrecurring payments received during the previous 12-month eligibility period. See Chapter 8.3 (Reporting Requirements). The nonrecurring income amount included at redetermination, is the amount remaining from the redetermination biweekly period to one year after the nonrecurring income is received.

Entering non-recurring income

During the 12-month eligibility period, if there is another change in the family’s income, the nonrecurring income is adjusted to include the remaining months/weeks. The remaining amount is counted in the new annualization period.

Nonrecurring income received prior to application

If nonrecurring income is received prior to CCAP application, the nonrecurring income is NOT included in the CCAP household income. However, if a CCAP participant receives counted nonrecurring income, the case closes and the family reapplies during the original annualization period, continue to count the nonrecurring income through the end of the original annualization period. Do not start a new annualization period.

Nonrecurring income reporting and overpayments

During the 12-month eligibility period

When counted nonrecurring income IS reported timely, and the income puts the family over 85% of SMI, request verification of the counted nonrecurring income and allow 15 days for the family to return the verification before closing the case. See Chapter 7.1 (Verification Due Dates) and Chapter 7.4 (Verification – 12-Month Eligibility Period).

When counted nonrecurring income is NOT reported timely, and the income puts the family over the maximum allowed for their family size (85% of SMI), cite an overpayment for child care assistance paid in excess of what should have been paid had the payment been reported timely. The overpayment includes the time period between the date of receipt of the counted nonrecurring income and the end of the 15-day adverse action notice.

At redetermination

If counted nonrecurring income received in the previous 12-month eligibility period is NOT reported at redetermination and would have put the family over 67% SMI or resulted in a higher copayment, cite an overpayment for child care assistance paid in excess of what should been paid had the payment been reported at redetermination. If the family exceeded 67% SMI at redetermination or a patch is needed for the copayment to increase, contact your policy specialist.

Tracking counted nonrecurring income

MEC2 does not remove the counted nonrecurring income from income in eligibility when the annualization period ends. See the MEC2 User Manual for instructions on how to track the expiration of the nonrecurring income and steps to follow when it expires.

Legal authority

Minnesota Statutes 142E.01
Minnesota Statutes 142E.10
Minnesota Rules 3400.0170
Minnesota Rules 3400.0180
Minnesota Rules 3400.0185