Transfer of Income

[EAS 42-221]

A POI results when in the month of receipt, a recipient gives away or transfers for less than fair market value, nonexempt, nonrecurring income that would cause the AU to be ineligible for a cash aid payment. A transfer for less than fair market value results when a recipient uses nonexempt, nonrecurring income to purchase a product or service with a fair market value of less than the money transferred.

Income is considered nonrecurring for purposes of determining a POI for the transfer of income rules if all of the following apply:

  • The income is not interest income or contractual income.
  • The income is for a period of more than one month.
  • The income is not from a source expected to regularly occur.

Note: The transfer of income rules do not apply to an applicant.

POI Calculation

The POI is computed based upon the amount of net nonexempt income given away or transferred for less than fair market value that would have made the AU ineligible for a cash aid payment. The EW takes the following steps to determine the POI:

  1. Combine the amount of the nonexempt income that was given away or transferred with all other nonex- empt income received in the month to determine the net nonexempt income.
  2. Subtract MAP for the AU from the amount of the net nonexempt income.
  3. Take the amount transferred and subtract the value of anything received from the transfer.
  4. Compare the amount determined in Step #2 with the amount calculated in Step #3 and determine the lesser of the two amounts.
  5. Divide the lesser of the two amounts from Step #4 by MBSAC for the AU.
  6. Round the resulting amount down to the nearest whole number to determine the number of months in the POI.

Applying the POI for Transfer of Income

When the AU has transferred income which results in a POI, the POI begins as follows:

If...

Then...

The POI is one month,

The POI begins in the payment month and aid is suspended for one month only.

The POI is two months or more,

Aid is discontinued and the POI begins in:

  • The month following the transfer when appropriate action has been taken to avoid or minimize an overpayment for that month. Any aid received by the AU during that month is an overpayment.

OR

  • The payment month.

The transfer is discovered too late to suspend or discontinue for the corresponding payment month,

The POI begins in that corresponding payment month and aid payments received during the POI are overpayments.

The transfer is made in the first or second month of aid,

Any resulting POI begins in the month the transfer was made. Any aid received during the POI is an overpayment

Note: Refer to Transfer of Property [EAS 42-221] for the rules for a transfer of property.

Related Topics

Income

SSI/SSP or CAPI Income

Family Income

Potentially Available Income

Availability of Income

Treatment of Income