TN 52 (09-11)

Citations:

Social Security Act, Section1612 ;

20 CFR 416.1104 , 416.1110 , 416.1120 , and 416.1121

A. Policy for types of income

1. Types of income

Income is either earned or unearned, and different rules apply to each. Either type may be cash or in-kind.

2. Earned income

Earned income consists of the following types of payments:

• wages

• net earnings from self-employment

• payments for services performed in a sheltered workshop or work activities center

• royalties earned by an individual in connection with any publication of his or her work and any honoraria received for services rendered.

3. Unearned income

Unearned income is all income that is not earned income. Some types of unearned income are:

• annuities, pensions, and other periodic payments

• alimony and support payments

• dividends, interest, and royalties (except for royalties mentioned in SI 00810.015A.2. in this section)

• rents

• benefits received as the result of another's death to the extent that the total amount exceeds the expenses of the deceased person's last illness and burial paid by the recipient

• prizes and awards

• in-kind support and maintenance (ISM)

B. References

• SI 00810.300 Computing Countable Income - General

• SI 00835.001 Introduction to Living Arrangements and In-Kind Support and Maintenance

• SI 01320.001 Deeming of Income- Background

• SI 00820.001 Earned Income

• SI 00830.001 General Information on Unearned Income