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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.