TN 99 (10-06)

SI 00830.050 Overview of Unearned Income Exclusions


Act as amended, Section 1612(b);
20 CFR 416.1124

A. Definition

An exclusion is an amount of income which does not count in determining eligibility and payment amount.

B. Policy

  • Exclusions never reduce unearned income below zero.

  • Except for the $20 general exclusion (SI 00810.420), no unused unearned income exclusion may be applied to earned income.

  • The infrequent or irregular income exclusion does not apply to unearned income that is subject to other exclusions (SI 00810.410H.). For example, the infrequent or irregular income exclusion does not apply to child support that is subject to the one-third child support exclusion.

C. Procedure

1. Determine if the item received is income

Before applying income exclusions, determine whether the item received is considered income. Some items are not income for SSI purposes. See SI 00815.001 through SI 00815.600. If the item is income, apply the appropriate exclusions.

2. Order of exclusions

Apply the unearned income exclusions in the following order. The order of exclusions is listed in regulations at 20 CFR 416.1124.

  • Income excluded under other Federal laws (SI 00830.055)

  • Any public agency’s refund of taxes on real property or food (SI 00830.705)

  • Assistance based on need which is wholly funded by a State or political subdivision (SI 00830.175)

  • Any portion of a grant, scholarship, fellowship, or gift used for paying tuition, fees, or other necessary educational expenses (SI 00830.455)

  • Food which an individual or his/her spouse raises if it is consumed by the household (SI 00830.700)

  • Assistance received under the Disaster Relief and Energy Assistance Act and assistance provided under any Federal statute because of a presidentially-declared disaster (SI 00830.620)

  • The first $60 of infrequent or irregular unearned income received in a calendar quarter (SI 00810.410)

  • Alaska Longevity Bonus payments (SI SEA00830.175)

  • Foster care payments (SI 00830.410)

  • Any interest earned on excluded burial funds and any appreciation in the value of an excluded burial arrangement which are left to accumulate and become a part of that burial fund (SI 00830.501)

  • Certain home energy and other needs-based support and maintenance assistance (SI 00830.600, SI 00830.605)

  • One-third of child support payments made by an absent parent (SI 00830.420, SI 00830.425)

  • $20 general income exclusion (SI 00810.420)

  • Income used to fulfill an approved plan to achieve self-support (SI 00810.430)

  • Federal housing assistance (SI 00830.630)

  • Any interest on excluded burial space purchase agreement if left to accumulate as part of the value of the agreement (SI 00830.501)

  • The value of any commercial transportation ticket which is received as a gift and is not converted to cash (SI 00830.521)

  • Crime victims compensation (SI 00830.660)

  • Relocation assistance (SI 00830.655)

  • Hostile fire pay received from the Uniformed Services (SI 00830.540)

  • Interest on a dedicated account which is excluded from resources (SI 01130.601)

  • Gifts to children with life-threatening conditions (SI 00830.750)

  • Interest and dividend income from a countable resource or from a resource excluded under a Federal statute other than section 1613(a) of the Social Security Act (SI 00830.500)

  • State Annuities for Certain Veterans SI 00830.260

3. Relationship of infrequent or irregular unearned income exclusion, ISM, and the PMV

  • First, apply the infrequent or irregular income exclusion to the ISM received infrequently or irregularly.

  • If the amount that remains equals or exceeds the PMV, then charge the PMV as income.

  • If the amount that remains is less than the PMV, charge the actual amount that is left as income.

4. More than one type of infrequent or irregular income is received in a calendar quarter

If more than one type of unearned income is determined to be infrequent or irregular, the first $60 of unearned income received infrequently or irregularly in a calendar quarter is excluded from income. The infrequent or irregular income exclusion is applied to the payment that was received first. Any remaining exclusion is applied to other infrequent or irregular payments in the order in which they were received.

D. References

SI 00815.001, What is not income.

SI 00810.410, Infrequent or Irregular Income.

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SI 00830.050 - Overview of Unearned Income Exclusions - 09/27/2010
Batch run: 11/21/2013