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].

Related Topics

Earned Income