UNEARNED INCOME
ISSUE DATE: 04/2023
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. |
● | Gains from selling personal 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 00.17.15.45 (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. |
● | Tribal per capita payments unless federal or state law excludes them as income for the purpose of determining eligibility for public assistance programs. See 0017.15.09 (Income from Tribal Payments). |
● | 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, DWP:
Only count unearned income sources specified in general provisions and:
● | GA, RCA and cash benefits already issued. See 0011.21 (Receipt of Other Assistance). |
● | Nonrecurring income over $60 per calendar quarter unless earmarked and used for the purpose for which it is intended. See 0017.01 (Non-Recurring Income). |
For MFIP only: 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).
● | 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. See 0002.09 (Glossary: Calendar Month…) |
MSA, GA, GRH:
Only count unearned income sources specified in general provisions and:
● | MFIP, DWP, RCA and cash benefits already issued. See 0011.21 (Receipt of Other Assistance). |
● | Nonrecurring income over $60 per calendar quarter unless earmarked and used for the purpose for which it is intended. See 0017.01 (Non-Recurring Income). |
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. |
PREVIOUS REVISIONS
| Date | Notes |
|---|---|
| 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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