UNEARNED INCOME
ISSUE DATE: 03/2026
Unearned income is income a client receives without being required to perform any labor or service as a condition of receiving the income. See 0017 (Determining Gross Income), 0017.06 (Excluded Income), 0017.12 (Determining if Income Is Earned or Unearned), 0017.15.84 (Contracts for Deed as Income).
Unearned income includes:
● | Interest and dividends from investments and savings. |
● | Capital gains from selling real property. |
● | Proceeds from rent and contract for deed payments in excess of the principal and interest portion owed on property. |
● | Income from trusts, excluding special needs and supplemental needs trusts. |
● | Interest income from loans made by the participant or household. |
● | Cash prizes and winnings. |
● | Unemployment insurance income. |
● | Retirement, Survivors, and Disability Insurance (RSDI) and Supplemental Security Income (SSI) payments. See 0017.15.45 (Income from RSDI and SSI). |
● | Disability benefits, including short-term and long-term disability insurance payments. |
● | Worker’s Compensation. |
● | Retirement benefits, including railroad retirement benefits, pension payments and veterans benefits. |
● | Child and spousal support income. See 0017.15.03 (Child and Spousal Support Income). |
Other types of income may be treated differently for each program. See 0017.15 (Specific Types of Income).
MFIP:
Only count unearned income sources specified in general provisions and:
● | GA, RCA and cash benefits already issued. See 0011.21 (Receipt of Other Assistance). |
For when to count a HUD housing subsidy as unearned income, see 0017.15.99 (Housing Subsidy).
For how to count military income, see 0017.15.93 (Military Income).
Do not count unemployment insurance received by:
● | Minor children. See 0002.41 (Glossary: Medically Necessary…). |
● | 18-year old students enrolled in secondary school. |
● | 18-or 19-year old caregivers enrolled in school at least half-time. |
SNAP:
In addition to income sources specified in general provision, count the following types of unearned income. This is NOT an all-inclusive list. Also see 0017.15 (Specific Types of Income), 0017.06 (Excluded Income).
● | Tribal per capita payments unless federal or state law excludes them as income for the purpose of determining eligibility for SNAP. See 0017.15.09 (Income from Tribal Payments). |
● | The military pay the family of a military person receives when that military person is out of the home on military duty. EXCLUDE combat or hazard duty pay received as a result of deployment to a combat zone. See 0017.06 (Excluded Income), 0017.15.93 (Military Income). |
● | The gross amount of gambling winnings. Do not offset winnings with losses. See GAMBLING WINNINGS in 0002.27 (Glossary: FSET...). |
● | Royalties and honoraria, unless they fit the definition of earned income. See EARNED INCOME in 0002.19 (Glossary: Early...). Also see 0017.12.06 (Earned Income). |
● | The value of prepaid credit card company gift cards the unit regularly receives and that can be reasonably anticipated. For recurring gift cards, see 0022.03.01.03 (Prospective Budgeting - SNAP Provisions). For non-recurring gift cards, see 0017.01 (Non-Recurring Income). |
● | Recurring guaranteed income payments (also known as universal basic income payments or unconditional income payments) that are sourced entirely with public funds (such as state, local or federal dollars). |
● | Recurring cash gifts or payments that are anticipated to continue. See 0002.09 (Glossary: Calendar Month…) |
● | The gross amount of Advance Child Tax Credit (ACTC) payments for people who have opted in to receive part of their child tax credit in advance. People may receive up to three ACTC payments. The advance payments count as unearned income. For budgeting, see the ACTC SNAP Budgeting Guide in the Guides and Handouts section of the Combined Manual. |
MSA, GA, HSP:
Only count unearned income sources specified in general provisions and:
● | MFIP and RCA and cash benefits already issued. See 0011.21 (Receipt of Other Assistance). |
For how to count military income, see 0017.15.93 (Military Income).
Do not count unemployment insurance received by:
● | Minor children. See 0002.41 (Glossary: Medically Necessary…). |
● | 18-year old students enrolled in secondary school. |
● | 18- or 19-year old caregivers enrolled in school at least half-time. |
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PREVIOUS REVISIONS
| Date | Notes |
|---|---|
| 07/2025 | adds that Advanced Child Tax Credit payments are considered unearned income for SNAP. |
| 07/2024 | Effective July 1, 2024, nonrecurring unearned income is not counted when determining or redetermining eligibility or benefits unless the income meets the definition of earned income or is identified as an unearned income source. This change applies to MFIP, DWP, RCA, GA, MSA, Housing Support, and CCAP. |
| 01/2024 | removed Tribal per capital payment from the general provisions list of countable unearned income types. |
| 08/2023 | Provides further clarification on the second bullet under Unearned income includes. |
| 04/2023 | provides further clarification on the list of unearned income sources that must be counted. |
| 02/2023 | in the 5th bullet under SNAP: corrected typo, removed “in part”. |
| 02/2023 | clarifies counting of unearned income throughout section. |
| 07/2022 | in general provisions deletes capital gains from any sale of real property from the list of unearned income and adds gains from selling personal property. |
| 02/2022 | in MFIP, DWP rearranges information. In SNAP rearranges information and adds information about prepaid credit card company gift cards. |
| 09/2021 | in MFIP, DWP adds a new last paragraph about when to not count unemployment insurance. It also in MSA, GA, GRH deletes and adds information throughout. |
| 09/2020 | in MFIP, DWP adds unearned income includes cash gifts. |
| 09/2018 | in SNAP adds a new 3rd paragraph to count royalties and honoraria, unless they fit the definition of earned income. |
| 10/2016 | Updates section due to Legislative changes for Program Uniformity/Income. |
| 05/2016 | updates section due to Legislative changes for Program Uniformity/Assets. |
| 12/2014 | Removed WB. This program was suspended 12/1/14. |
| 11/2012 | update Food Support and FS to Supplemental Nutrition Assistance Program (SNAP) and FSET to SNAP E&T throughout. No policy was changed. |
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