View History

4.5.5 Nonrecurring Lump Sum Payment

Disregard Disregard means 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:

  1. Income tax refunds, rebates, or credits.

  2. Retroactive lump sum insurance settlements.

  3. Retroactive UC Unemployment Compensation payments.

  4. Utility or rental security deposit refunds.

  5. Retroactive SS or public assistance payments.

  6. Retroactive Caretaker Supplement for Children (CTS; C-Supp Caretaker Supplement for Children).

  7. TANF Temporary Assistance for Needy Families payments made to divert a family from becoming dependent on welfare, such as Emergency Assistance.

 

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 group member receives SSA Social Security Administration benefits. In June, 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 EITC Earned Income Tax Credit and SSI Supplemental Security Income Retroactive Installment Payments.

 

This page last updated in Release Number: 04-04

Release Date: 10/27/04

Effective Date: 10/15/04