Unearned Income

 [63-502.14]
Unearned income is any income not earned through employment. The chart below lists types of unearned income. (Income listed here may be exempt or nonexempt.) Refer to Exempt Income [63-502.2] for income exemptions.

 

UNEARNED INCOME ADDITIONAL INFORMATION OR RESTRICTIONS
ADOPTION ASSISTANCE PROGRAM (AAP) Exempt if the child is not yet adopted or if the payment is a reimbursement for expenses such as medical or dependent care. AAP payments are considered “incentive payments” to the adoptive parents of hard-to-place children.
ALIMONY  
ANNUITIES  
CALIFORNIA TRAINING BENEFIT (CTB) Count as unearned income.
CASH GIFTS Count as unearned income.
CHILD/SPOUSAL SUPPORT

Includes direct payments, pass-on payments, and excess payments. It also includes the first $100/month of child/spousal support paid (including arrearages) to or on behalf of a household.

Direct child support payments received for step/half-siblings who are excluded from CalWORKs AU's MAP under SB 380 must be counted.

 

Exception: When the child support payment (including court-ordered arrearages) must be transferred to DCSS to maintain CalWORKs eligibility, it is excluded for CalFresh, whether or not the money is actually transferred.
Once the client signs the agreement (CW 2.1) with DCSS to turn in child support payments, these payments are exempt from the CalFresh budget.

 

Child support collected by the DCSS in a month the HH was not on CalFresh but issued to the HH by DCSS in a month the HH is on CalFresh is considered a lump sum payment and is counted as a resource. It is NOT counted as income.

DEPARTMENT OF DEFENSE FAMILY SUBSISTENCE SUPPLEMENTAL ALLOWANCE (FSSA) BENEFITS Any FSSA benefits are to be treated as UNEARNED income. The amount of FSSA is shown on the member’s leave and earnings statement, which is the standard wage information form used by the military.
DISABILITY INSURANCE BENEFITS

Includes State DIB and payments from any other disability plan.

Refer to UIB/DIB Offsets if all or part of a DIB payment is withheld for a chart listing the various offsets and their treatment.]

DIVIDENDS FROM STOCKS AND BONDS  
EARMARKED INCOME

Count recurring income that is reasonably anticipated to continue unless specifically exempted. Refer to Exempt Income [63-502.2].

ExampleExample

A CalFresh household receives $327 from his father, which is earmarked for the auto loan payment. The funds for the auto loan payment must be counted as unearned income in the CalFresh eligibility determination and benefit calculation. 

EDUCATIONAL GRANTS Refer to Students.
ENERGY ASSISTANCE PAYMENTS Includes any state or local energy assistance program payment that is not specifically exempted. Refer to Exempt Income [63-502.2].
INTEREST FROM BANK ACCOUNTS  
LOANS Includes personal and deferred educational loans. Refer to Students for more information on deferred educational loans.]
LOTTERY and/or GAMBLING WINNINGS

Counted as income when received in annual installments, but exempt as income and counted as a resource (non-recurring lump sum) when received in a one-time payment.

Lottery winnings paid annually and not made in monthly installments shall be averaged over 12 months.

Exception: A household that receives substantial lottery and/or gambling winnings immediately becomes ineligible for CalFresh. Refer to Chart Book Chapter 2 for the current substantial lottery and/or gambling winnings resource limit.

Non-Minor Dependent (NMD) Foster Care Payments Any portion of the NMD’s foster care payment that is received directly by the NMD is considered unearned income and included when determining the household’s eligibility and benefit level. [Refer to “Exempt Income [63-502.2],” page 19-12]] for excluded vendor payments.
PAID FAMILY LEAVE (PFL)

All PFL payments linked to SDI are considered unearned income.

Note: Prior to receiving PFL, the individual has the option to take up to two weeks of vacation or sick leave. If this occurs, the vacation or sick leave payments are considered earned income.

PUBLIC ASSISTANCE (PA) PAYMENTS BASED ON NEED This includes CalWORKs, RCA, GA, CAPI, FC, AAP, SSI/SSP, Tribal TANF, and child support disregard payments. It also includes funds withheld from a PA grant to repay a Fraud or client-caused “other” overpayment and the amount of a grant reduction due to the client’s failure to meet another program’s requirements. Refer to Public Assistance Grant Reductions—Failure to Comply [63-503.5].
Reception and Placement (R&P) Income/VOLAG Funds

Refugees are eligible to receive R&P income of $1,100 or more per person within the refugee’s first 90 days in the U.S. Income is treated according to the way the VOLAGs disburse the funds:

  • Funds disbursed in several payments in more than one calendar month are counted as unearned income and prospectively budgeted.
    • Note: Income “earmarked” by the VOLA for specific purposes (rent, utilities, furniture, etc.) is considered excluded income.

  • Funds disbursed as Lump Sum or Vendor Payments are exempt.

Refer to Exempt Income [63-502.2].

REIMBURSEMENTS Refer to Exempt Income [63-502.2]. HUD rental/utility assistance payments are not considered reimbursements but count as unearned income.
Rental Payments
  • Count as uneared if CF HH is only on the lease agreement and receives money directly from a non-household(s).
  • Count as unearned if CF HH owns a property and rents out the entire property but spends less than an average of 20 hours per week to manage the rental property.
RETIREMENT BENEFITS  
ROSS GRANTS Count as unearned if received while attending a training program without work requirements.
SOCIAL SECURITY (SSA) If all or part of an SSA payment is withheld: To repay an overpayment, count only the reduced amount as income. For any other reason, count the total SSA amount before the reduction as income.
STRIKER BENEFITS Except for any portion paid as compensation for picketing.
TRUST FUND WITHDRAWALS OR DIVIDENDS If actually, or could be, received from an exempt trust fund.
UNEMPLOYMENT BENEFITS (UIB)

If all or part of a UIB payment is withheld:

  • To repay an overpayment, count only the reduced amount as income.
  • Due to earnings received during the period for which the payment is being issued, count only the reduced amount as income.
  • Due to a benefit garnishment, voluntary withholdings, or child support, count the FULL UIB amount before the reduction as income. Allow child support deduction if benefits are garnished for child support payment.

Refer to UIB/DIB Offsets for a chart listing the various offsets and their treatment.]

VETERAN’S BENEFITS This also includes AA benefits paid to an elderly or disabled veteran, their spouse, surviving spouses, and parents.
WORKERS COMPENSATION (WC) BENEFITS Both temporary and permanent benefits are considered unearned.

 

Related Topics

Earned Income