State of Wisconsin Department of Health Services

Release 24-02 August 22, 2024

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4.5.5 Recurring and Nonrecurring Lump Sum Payment

7 CFR 273.9(c)(8)

4.5.5.1 Recurring Lump Sum Payment

A recurring payment, received in two or more installments, is income. Exceptions are Earned Income Tax Credit (EITC) and SSI Retroactive Installment Payments.

Example 1

A food unit member receives an insurance settlement payment as a lump sum every three years. The agency receives documentation showing that the same amount is set to be paid every three years over the next 30 years. The lump sum should be budgeted as a monthly amount over the period it is meant to cover. The lump sum amount should be divided by 36 with the resulting amount budgeted as monthly unearned income.

4.5.5.2 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:

1. Retroactive lump sum insurance settlements.
2. Retroactive UCUnemployment Compensation payments.
3. Utility or rental security deposit refunds.
4. Retroactive social security or public assistance payments.
5. Retroactive Caretaker Supplement for Children (CTS).
6. TANFTemporary Assistance for Needy Families payments made to divert a family from becoming dependent on welfare, such as Emergency Assistance.
7. 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.
8. A bonus if the income is received infrequently or irregularly to be reasonably anticipated.

For Elderly, Blind, or Disabled food units that are over 200% FPL and subject to regular FoodShare rules, disregard an income tax refund as an asset or resource for 12 continuous months from the month of receipt.

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

Example 2

A food unit member receives social security benefits. In June, they get 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.

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Publication Number: P-16001