TN 5 (04-90)
RS 01301.030 One-Half Support — Income to Claimant
For support purposes, a claimant's income consists of income in cash, kind or services.
B. POLICY - GENERAL
1. One-Time Cash Payment
A one-time cash payment to the claimant received during the support period must be counted as income to the claimant if the payment was available for support purposes (regardless of how the payment was actually used).
2. Community Property
State community property statutes are disregarded in considering the source of income to a claimant (or a NH).
3. Payee Situations
In payee situations, any benefits paid are considered funds of the qualified individual (not the payee). The more usual sources of income are discussed in the following sections.
C. POLICY - SOURCE OF INCOME
1. Business Income
Net earnings from the operation of a business (including commercial farms) are income for support purposes. Net loss is not income unless reason to doubt exists. (See RS 01301.160C.).
When the NH and claimant are joint owners, allocate the net income equally to both. If any question arises about the identity of the self-employed individual or allocation of income because of the possible existence of a partnership, follow RS 01800.000 ff.
The claimant's total pay (before taxes and other deductions), minus any expenses incurred in furthering the employer's business (e.g., reimbursable travel expenses or advances), is the claimant's income for support purposes.
3. Agricultural Produce Used
The net value of farm or garden produce used (market value less expenses of production) is income for support purposes.
4. Rental Income
Income from rental property is equal to the gross income minus all regular expenses. Accelerated mortgage payments and depreciation are not regular expenses.
5. Investment and Similar Income
If the claimant is sole owner of income-producing property such as stocks and bonds, real estate investments, bank deposits, etc., the current earnings (dividends, interest, etc.) are income to the claimant. If the property is jointly owned, allocate the current income to the joint owners equally. Consider allegations and, if necessary, develop to determine ownership of the property.
6. Sale of Assets
Proceeds from the sale of assets are income to the claimant for support purposes unless there is evidence to the contrary. If the assets are jointly owned, allocate the proceeds to the joint owners equally.
7. Funds from Insurance Policies
Funds from insurance policies (of which the claimant is either owner or beneficiary) are income for support purposes unless there is evidence to the contrary.
Debts incurred by the claimant for support are income to the claimant. However, see RS 01301.120 if the debt was incurred on the basis of the NH's credit.
9. Net Withdrawal from Savings Accounts
Withdrawals minus deposits are income to the claimant. In cases involving joint bank accounts, it is generally presumed that the funds are divided equally. This presumption can be rebutted by sufficient evidence (e.g., if one of the involved parties was not working or not making any deposits to the account).
10. Public Assistance or Other Public Aid
Public assistance or other public aid is income and must be counted in computing support. However, initial receipt of, or an increase in, public assistance or aid after untoward circumstances (RS 01301.020C.) forced a NH to reduce or stop contributions will not preclude a finding of one-half support.
11. Federal Benefits
SSA monthly benefits and monthly benefits of other Federal agencies are income to the claimant. The lump-sum death payment and death payments of other Federal agencies are income to the claimant only if and to the extent used for support.
12. Room and Board Furnished
Room and board furnished the claimant by the NH or some other person is income and must be considered in the support computation. (See RS 01301.070 - RS 01301.080 for further discussion of room and board).
Contributions to the claimant in cash, goods or services are income (see RS 01301.060). However, personal services are not income unless such services are purchased. The support requirement is based on an economic relationship. (See SSR 60-23, C.B. 1960-1965.)
Alimony received by the claimant from the NH or some other person is income and must be considered in the support computation.
D. POLICY - HOME OWNED BY CLAIMANT
For support purposes, no income shall be attributed to the claimant by reason of owning and occupying a single-unit dwelling since ordinarily the expenses of maintenance equal the fair rental value (see RS 01301.090) of such a dwelling. If, however, the dwelling contains other units from which actual income is received, see 4. above.