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Revision 04-3; Effective April 1, 2004
A—1331 Lump-Sum Payments
Revision 15-4; Effective October 1, 2015
TANF and SNAP
Lump sums received once a year or less are exempt, unless specifically listed as income. These sums are considered as a resource in the month received, and the policy in A-1242, Lump-Sum Payments, applies.
Note: Retroactive or restored payments are considered to be lump-sum payments and count as a resource. Any portion that is ongoing income is separated from a lump-sum amount and counted as income.
Example: A person receives a lump-sum payment in the amount of $4,950 from the SSA in the month of March. Effective that same month, the person receives his first monthly RSDI payment of $950, which is included in the $4,950 lump-sum payment. Staff must budget the $950 RSDI payment beginning with the month of March as an ongoing payment and consider the $4,000 as a lump-sum payment.
A lump-sum payment counts as income in the month received if the individual gets it or expects to get it more often than once a year.
Exceptions: Contributions, gifts, and prizes count as unearned income in the month received, regardless of frequency of pay.
If a lump sum reimburses a household for burial, legal, medical bills or damaged/lost possessions, the countable amount of the lump sum is reduced by the amount earmarked for these items.
Federal tax refunds and EICs are exempt as income.
Medical Programs
All lump-sum payments are counted as income in the month they are received.
Note: Award prizes are considered lump-sum payments and are counted in the month they are received.
Related Policy
Cash Gifts and Contributions, A-1326.1
Federal Tax Refunds and Earned Income Tax Credits (EIC), A-1232.2
A—1332 Reimbursements
Revision 15-4; Effective October 1, 2015
TANF
A reimbursement (not to exceed the individual's expense) is exempt if it is provided specifically for a past or future expense:
- that is not included in HHSC's standard of need, or
- for medical needs that are not paid by Medicaid.
If the reimbursement exceeds the individual's expenses, any excess counts as unearned income. A reimbursement to exceed the individual's expenses is not considered unless the individual or provider indicates the amount is excessive.
Note: A reimbursement for future expenses is exempt only if the individual plans to use it as intended.
SNAP
A reimbursement (not to exceed the individual's expense) provided specifically for a past or future expense other than a normal living expense is exempt.
If the reimbursement exceeds the individual's expenses, any excess counts as unearned income. A reimbursement is not considered to exceed the individual's expenses unless the individual or provider indicates the amount is excessive.
Note: A reimbursement for future expenses is exempt only if the individual plans to use it as intended.
Medical Programs
A reimbursement is exempt. Reimbursements include private insurance payments.
A—1333 Third-Party Beneficiary
Revision 15-4; Effective October 1, 2015
All Programs
Money an individual receives that is intended and used for maintenance of a nonmember is exempt.
If an individual receives a single payment for more than one beneficiary, the amount actually used for the nonmember is excluded up to the nonmember's identifiable portion or prorated portion, if the portion is not identifiable.
A—1334 Vendor Payments
Revision 15-4; Effective October 1, 2015
All Programs
Payments that a person or organization outside the household makes directly to the individual's creditor or person providing the service are exempt.
TANF and SNAP
Exception: Money legally obligated to the household, but which the payer makes to a third party for a household expense is counted as income.
Example: In a SNAP EDG, the absent parent is court-ordered to pay $400 a month. Instead, the absent parent pays $150 cash support and also pays $300 of the custodial parent's rent directly to the landlord for a total of $450. The $150 cash and $250 of the vendor-paid rent counts as child support, since that portion is legally obligated to the individual. The $50 amount over the legally obligated child support of $400 is considered an exempt vendor payment.
Related Policy
Cash Gifts and Contributions, A-1326.1
Child Support, A-1326.2
A—1334.1 Vendor Payments from State and Local Government Funds
Revision 15-4; Effective October 1, 2015
SNAP
All vendor payments made for a household with a migrant farm worker in the workstream that are paid with state or local government funds are exempt.
Vendor payments paid to other people with state or local government funds are counted unless the payment provides assistance for:
- medical expenses,
- child care, or
- expenses related to natural disasters (for example, fires or floods).
Note: Vendor payments paid with federal funds (for example, federally funded housing assistance) are exempt. Policy in A-1326.3, Energy Assistance, applies.
TANF and Medical Programs
Vendor payments from state and local government funds are exempt.