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Nonrecurring Lump Sum Payments
Overview
To be considered a nonrecurring lump-sum payment, a payment must be:
- Money owed to the household for a period prior to the current month, and/or
- Represent a return of a payment or part of a payment that was made in the past by the household and/or
- A one-time payment resulting from a government policy/law.
Exemption [63-502.2(j)]
Income received as a nonrecurring lump sum payment is exempt.
Lump-sum payments fall into three categories and include but are not limited to the following:
Retroactive Payments
- Retroactive Social Security or Railroad Retirement (subtract the current month benefit).
- Retroactive State Unemployment or Disability benefits (subtract the current month benefit).
- Retroactive public assistance payments due to:
- Approval of an application,
- Supplemental or corrective payments for a previous month, or
- Court order.
- Child support COLLECTED by the DCSS in a month in which the HH is NOT on CalFresh which is issued to the HH in a later month when the HH is on CalFresh.
Return of Resources
- Rental or security deposit refunds.
- Utility deposit refund.
- Keogh plans.
- IRAs.
One-time Payments Resulting from a Government Policy or Law
- Tax refunds.
- Rebates or credits.
- CalWORKs homeless payments for temporary or permanent housing.
- CalWORKs diversion payments made to divert a family from becoming dependent on welfare if the payment is not defined as assistance.
- Lottery winnings received in a single payment, unless deemed as a substantial lottery and/or gambling winnings. Refer to Chart Book Chapter 2 for current substantial lottery and/or gambling winnings resource limit.
- Vacation pay received in a single payment after employment ceases.
- Insurance settlements.
Treatment
Nonrecurring lump sum payments are counted as a resource in the quarter received, unless otherwise exempt.
Resources
Nonrecurring lump sums are counted as a resource in the quarter received, unless otherwise exempt. Refer to Resources [63-501].
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