OBSOLETE POLICY

CHIP MANUAL

 

402-1  Examples of Unearned Income

Effective: January 1, 2011

Previous Policy

  1. Pensions and annuities.  For example, Railroad Retirement, Social Security, Supplemental Security Income, Civil Service, private pensions and investment annuities. See section 402-4 for Economic Recovery and Reinvestment Act of 2009 related payments.

  2. Disability benefits such as Worker’s Compensation and paycheck insurance.

  3. Unemployment benefit compensation. See section 402-4 for Economic Recovery and Reinvestment Act of 2009 related payments.

  4. Strike and union benefits.

  5. Veterans Administration Benefits.  May include VA benefits based on need, service related compensation and disability payments. See Sec. 402-2. See section 402-4 for Economic Recovery and Reinvestment Act of 2009 related payments.

  6. Alimony and child support.  Child support will not be counted since it is income of a child.  See section 401-3 for rules about how to count income of a child.

  7. Rental income and payments for the use of real or personal property.  Rental income is unearned income if the client owns the property and someone else manages the property.  See Sec. 402-9 for the rules on how to count this income.

  8. Sales contracts.  See Section 402-5.

  9. Payments to replace lost or destroyed property.  See Sec. 402-6.

  10. Inheritances.  See Sec. 411 for lump sum policy.

  11. Life insurance benefits.  See Sec. 411 for lump sum policy.

  12. Personal injury settlements.  See Sec. 411 for lump sum policy.

  13. VA student income for the family member of the veteran.  See the rules in Sec. 402-10.

  14. Tribal fund gratuities.

  15. Cash gifts, contributions, and church assistance.  See the rules in Sec. 402-8.

  16. Deposits to joint checking and/or savings accounts by a non-household member.  See Section 402-11.

  17. Interest and dividends.

  18. Deferred Income.   See Sec. 410-6.

  19. Payments from the Family Employment Program, General Assistance, or Refugee Cash Assistance and Adoption Support Services.

  20. Supplemental Security Income (SSI) and State Supplemental Payments

  21. Income received by a limited partner of a partnership (General Partnership, Limited Partnership, or Limited Liability Partnership); income received from an S Corp when the individual is not actively engaged in the business; dividends received by a member of a Limited Liability Company which is being taxed as a corporation; and dividends received by a stockholder in a Corporation.  See Section 401-2 for more information.