4.5.5 Nonrecurring Lump Sum Payment

7 CFR 273.9(c)(8)

Disregardmeans do not count, exempt, or exclude money received as a nonrecurring lump sum payment as income. A nonrecurring lump sum is a payment received only once. Count it as a liquid asset in the month the food unit receives it. Types of nonrecurring lump sum payments include but are not limited to:

Retroactive lump sum insurance settlements.
Retroactive UCUnemployment Compensation payments.
Utility or rental security deposit refunds.
Retroactive social security or public assistance payments.
Retroactive Caretaker Supplement for Children (CTS).
TANFTemporary Assistance for Needy Families payments made to divert a family from becoming dependent on welfare, such as Emergency Assistance.
Funds received through crowdfunding accounts (such as GoFundMe, Kickstarter, and Indiegogo). Only those funds accessible to the food unit at the time of interview are to be counted as a liquid asset.
A bonus if the income is received infrequently or irregularly to be reasonably anticipated.

Disregard Income tax refunds as income, or as an asset or resource.

When a combination of current and lump sum payments are received at once, the current amount is income and the nonrecurring amount is an asset.

Example 1: A food unit member receives social security benefits. In June, he or she gets a $950 check. $430 is for the current month (June) and $520 is a retroactive payment for underpayments in February and March. The $430 is income and the $520 is an asset.

A recurring payment, received in two or more monthly installments, is income. Exceptions are EITCEarned Income Tax Credit and SSISupplemental Security Income Retroactive Installment Payments.

This page last updated in Release Number: 16-02

Release Date: 12/19/2016

Effective Date: 12/19/2016