TN 38 (12-98)

Citations:

Social Security Act, Section 1612(b)(2);

20 CFR 416.1112(c) and 416.1124(c)

A. Policy

1. Unearned income

We exclude the first $20 per month of any unearned income other than in-kind support and maintenance received in the household of another valued at one-third the FBR (i.e., the VTR), and income based on need (IBON).

Do not increase the dollar amount of this exclusion when both an eligible individual and his/her eligible spouse have income. An eligible couple receives one $20 exclusion per month.

2. Income based on need

Income based on need is a benefit that uses financial need as measured by income as a factor to determine eligibility.

The $20 exclusion does not apply to a benefit based on need that is totally or partially funded by the Federal Government or by a nongovernmental agency.

3. Earned income

If an individual (or couple) has less than $20 of unearned income (other than the VTR and IBON) in a month and also has earned income in that month, the remainder of the $20 exclusion reduces the amount of the earned income.

B. References

• ISM valued under the VTR rule, SI 00835.200

• IBON, SI 00830.170

• ABON, SI 00830.175