Legally-Obligated Money - 7 CFR § 273.9(c)(1)(vii)(A)-(C) - Count as earned income when legally-obligated money is earned.  


Count as unearned income when it is unearned. 

 

Legally-obligated money is money that would be payable to an EDG member, but that is garnished or diverted by the provider of the payment, and instead paid to a 3rd party for an EDG expense.  


Examples of situations where the legally-obligated-money rule applies include, but are not limited to:

  • SSI, TFA or Social Security benefits that are diverted to pay for child support.
  • Wages that are garnished from an EDG member’s paycheck to pay for alimony.


Loans (Non-Educational) - 7 CFR § 273.9(c)(4) - Exclude non-educational loans from private individuals and commercial institutions.  A legally executed document is not required to verify the income is a loan.


Low-Income Home Energy Assistance Program (LIHEAP) - See Energy Assistance.


Lump Sum (Nonrecurring) - 7 CFR § 273.9(c)(8) and (13) - Exclude nonrecurring lump sum payments, including but not limited to, payments received as a one-time payment for:

  • Back pay not withheld at the request of the employee.
  • Bonus received after employment has stopped.
  • Diversion Program payments.
  • Income tax refunds, rebates, or credits, including EITC.
  • Insurance Settlements.
  • Refunds of security deposits on: 
    • rental property, 
    • utilities, or
    • A HUD rental refund.
  • Retroactive lump sums for the past month or more, such as Social Security, SSI, TFA, Unemployment Benefits, or other retroactive payments.

Note:  SSI retroactive benefits may be paid out in more than one payment. Each retroactive payment is a nonrecurring lump sum and is excluded as income.

  • Retroactive pay raise of an employee whether employed or not at the time of receipt.
  • Sale of an EDG’s countable or exempt resources (such as the EDG’s homestead, personal effects, household goods, or an automobile) that are not sold as part of a self-employment business.
  • VA annual disability pension adjustment.