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Types of Unearned Income
Pensions and annuities. This includes Railroad Retirement, Social Security, Black Lung benefits, Civil Service, private pensions, retirement funds, and investment annuities. When a person qualifies for and receives periodic payments from a retirement plan, pension, or annuity, the payments are counted as income, not a conversion of an asset. When a pension or retirement account has been divided by a Qualified Domestic Relations Order, refer to 403-3 for treatment as income and 521-13 for resource policy.
Disability benefits such as Social Security Disability Insurance, Workers Compensation, long-term disability insurance from an employer, and paycheck insurance. (See section 450-2 for how MAGI-based programs consider Worker's Compensation.)
Survivor's benefits from Social Security, Railroad Retirement, VA, etc.
Needs-based income such as Supplemental Security Income or Family Employment Program benefits. See section 403-4 on how to count SSI payments and section 463-1 on how to determine a client’s contribution to cost of care in a medical institution.
Unemployment compensation; Strike and union benefits. See 403-4.21 for disaster related unemployment compensation.
VA benefits. See Section 403-2.
Child support and alimony. For child support and alimony payments, see the rules in Sec. 403-6.
Rental income and payments for the use of real or personal property. See Sec. 403-5 for rules on how to count this income.
Sales contracts. See Sec. 403-9.
Payments to replace lost or destroyed property. See Sec. 403-10.
Interest earned on loans made by the client. If the client has borrowed money, see Sec. 403-4.
Inheritances. See Sec. 407 for lump sum policy.
Life insurance benefits and other death benefits. See sec 403-4.29 and 407-2 for exclusions.
Personal injury settlements. See section 403-13.
Medical insurance payments made directly to an individual. If the payment is not a refund for expenses the individual has already paid, or the payment from the medical insurance will not be collected by the Office of Recovery Services (ORS) as a third party liability, the amount received is income to the individual. This includes payments from a long-term care insurance partnership policy made directly to the client if it is not a reimbursement of paid expenses or will not be collected by ORS.
Educational assistance and college work-study. See the rules in Sec. 403-7.
Tribal fund payments. See sec 403-4.12 and 403-16.
Cash gifts, contributions, and church assistance. See the rules in Sec. 403-8 and 403-4.
For items received from medical or social service agencies that are not income, see Sec. 402
Deposits to joint checking and/or savings accounts by a non-household member, including guardian, conservator, or representative payee accounts. See sec. 403-15.
Interest and dividends. See Sec. 403-8.
Certain royalties paid for the use of property or natural resources. See Section 403-12. If the royalties are received as part of self-employment or in connection with the publication of the individual's work see Section 405.
Food or shelter for which the client performs no service. See Sec. 403-11.
Deferred Income and Other Deductions from Income. Deferred income is income that is received later than the normal payment date.
If an individual is supposed to be receiving unearned income, but says that the payments are being withheld, or deferred, for some reason, see Sec. 403-3.
If wages or salaries are being deferred, see sec. 405-2.
Deemed income from a spouse. See Sec. 427-2.
Deemed income from a parent. See Sec. 427-3.
Payments from a trust. How to count income from a trust is covered under Sec. 512 , which covers when to count the trust as a resource as well as when payments must be counted as income.
Certain business income. Income received by a limited partner of a 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 401-4 for more information.