Treatment of Income Chart

Created on: 
May 10 2016

Sources

Chart

Income Type Earned, Unearned, or Excluded?
Adoption support Excluded
Alaska Native Claims Settlement Act, P.L. 92-203 and 100-241 Excluded
AmeriCorps, including VISTA Earned – if income is taxed

Excluded – if income is not taxed 

Benefits received by children of Vietnam War veterans who are diagnosed with spina bifida Excluded

Unearned – if spina bifida occulta

Benefits payments Excluded
Bureau of Indian Affairs (BIA) higher education grants Excluded
Carl D. Perkins Vocational and Applied Technology Education Act, P.L. 101–392 Excluded 
Child support Unearned – counted as child’s income
Child support arrears Unearned – counted as parent’s income

Lump sum – if one-time payment

Child support paid out Deduction – if court ordered and client is paying
Christa McAuliffe Fellowship Program Excluded
Compensatory rewards Excluded
Copayments paid directly to a provider by a third-party Excluded
Corporate compensation Earned 
Court-ordered payment for personal injury, damage, or loss of property Excluded
Department of Education Excluded
Disability payments Unearned
Diversion case assistance Excluded
Earned income of 18-year-old siblings of children who require care Excluded
Earned income of children who require care up to 21-years-old Excluded
Earned income of a minor child Excluded
Employment Earned
Foster care payments Excluded
Gambling Winnings Lump Sum – if one-time payment

Unearned – if received monthly

Income from all non-parental clients Excluded
Income tax refund Excluded
Indian judgment funds distributed per capita under P.L. 93-134 as amended by P.L. 97-458 and 98-64 Excluded
Indian Trust Funds or Lands held in trust by the Secretary of the Interior for an Indian tribe or individual tribal member Excluded
Inheritance Lump Sum – if one-time payment

Unearned – if received monthly

Insurance settlement Excluded
Jacob K. Javits Fellowship Program Excluded
L&I payments Unearned
Leases or other uses of individually owned trust or restricted lands, P.L. 103-66 Excluded
Library Career Training Program Excluded
Military food allowance Excluded
Military housing allowance Excluded
Money received for an absent or non-household member Excluded

Unearned – any portion retained by the subsidy unit

Needs-based assistance from other agencies or organizations Excluded
Payments from the trust fund established by the P.L. 101-41 made to a Puyallup Tribe member Excluded
Pell grants Excluded
Property Sales Lump sum – if sold in month of application or during certification period

Excluded – if sold before application

Puyallup Tribe of Indians Settlement Act of 1989, P.L. 101-41 Excluded
Refugee Assistance Unearned
Reimbursements Excluded
Self-Employment Earned
Seneca Nation Settlement Act, P.L. 101-503 Excluded
Social Security payments (SSI, SSA, SSDI) Unearned

Excluded – if SSI overpayments withheld from gross SSI income

Submarginal land held in trust for certain Indian tribes as designated by P.L. 94-114 and P.L. 94-540 Excluded
TANF Unearned

Excluded – if the client started employment less than three calendar months ago

Title IV of the Higher Education Amendments (Title IV – HEA) and Bureau of Indian Affairs (BIA) Excluded
Unemployment Compensation (UC) Unearned
Veterans’ Administration payments Unearned
Veterans’ Administration Educational Assistance Excluded
Washington Service Corps (WSC) Earned – if income is taxed

Excluded – if income is not taxed

White Earth Reservation Land Settlement Act of 1985, P.L. 99-264, Section 16 Excluded
Work study income Excluded