TN 95 (09-04)

A. Introduction

The following provides a list of those instructions that address a partial or total exclusion of unearned income. Those in bold print involve an exclusion under another Federal statute.

B. List of Instructions About Unearned Income Exclusions

C. Reference

Guide to resources exclusions, SI 01130.050

D. Policy—Disaster Assistance

President Bush has authorized emergency aid to victims of Hurricane Katrina in accordance with the Robert T. Stafford Disaster Relief and Emergency Assistance Act. It is expected that many counties/parishes will become presidentially-declared disaster areas. A list of the counties/parishes declared as disaster areas will be available on the Federal Emergency Management Agency’s (FEMA) internet site (http://www.fema.gov ).

Special income and resource exclusions apply to presidentially-declared disaster areas. These instructions are explained in POMS SI 00830.620 and SI 01130.620.

E. Policy—New Income and Resource Exclusions

1. Certain Payments Under the National Flood Insurance Program

Based on recent legislation, assistance provided under the National Flood Insurance Program for flood mitigation activities with respect to property shall not be considered income or a resource of the property owner when determining SSI eligibility or payment amount.

2. Debit Cards Issued to Victims of Hurricane Katrina

Debit cards have been issued to some of the individuals displaced by Hurricane Katrina. These cards are considered to be disaster assistance and are excluded from income and resources.

F. Policy—Existing Income and Resource Exclusions In POMS

Interviewers should also give special attention to the income and resource exclusions listed below. These exclusions may apply to disaster-related assistance whether or not the beneficiary is in a presidentially-declared disaster area.

1. Funds for Replacement of an Excluded Resource – Cash or in-kind items, provided from any source, to replace or repair a lost, damaged or stolen resource is not income. If the cash or in-kind items were provided to replace or repair an excluded resource, and the disaster assistance exclusions above do not apply, the cash or in-kind items can be excluded from resources for up to 30 months (9-month initial period, 9-month good cause extension plus an additional 12-month good cause extension in the case of presidentially-declared disasters). Sources may include insurance companies, private or religious organizations, private individuals, the Federal government, State and local governments, etc. (SI 01130.630).

2. Receipt of Certain Noncash Items – The value of any noncash items received (other than in-kind support and maintenance) is not income if they would become a partially or totally excluded nonliquid resource if retained into the following month. (SI 00815.550 and SI 01110.210)

3. Homeless Individuals and In-Kind Support and Maintenance – Under the disaster provisions described in Section B. above, support and maintenance in cash or in-kind is excluded and the one-third reduction does not apply for an individual who stopped living in his/her home due to the disaster. Do not charge ISM for an individual made homeless by this disaster. Any food and shelter the individual receives is excludable whether provided in a private home, a shelter, or any other temporary housing arrangement resorted to because of the disaster. (SI 00830.620)

4. Home Energy and Support and Maintenance Assistance (HEA/SMA)- HEA/SMA is excluded from income if it is certified by the State as provided based on need and it is provided in-kind or in cash by a private nonprofit agency or it is provided in-kind by a supplier of home heating oil or gas, a rate-of-return entity providing home energy, or a municipal utility providing home energy. (SI 00830.605 and SI 00835.331)

5. Loan Proceeds - Loans of cash or in-kind support and maintenance that the borrower is obligated to repay are not income. (SI 00815.350, SI 00835.480 and SI 01120.220)

6. Irregular and Infrequent Income - Exclude the first $30 of earned income and the first $60 of unearned income received in a calendar quarter which is received either infrequently or irregularly. (SI 00810.410)

7. Medical and Social Services - Medical and Social Services are not income. (SI 00815.050)

8. Third Party Payments - A third party payment of an individual's bills for an item other than food or shelter is not income. (SI 00815.400)

9. In-Kind Clothing – In-kind gifts of clothing are not a form of income or in-kind support and maintenance for all SSI beneficiaries and deemors beginning March 9, 2005. (SI 00815.001B. and SI 00835.400B.)

10. Improvements and Repairs - Help with labor, third party payments for repairs, and materials for improvements and repairs to an existing resource are not income, e.g., home or car repairs. (SI 00815.001B. and SI 00815.500)

11. Personal Services – The value of personal services is not income. Examples can include personal care services, transportation, cleaning, etc. (SI 00815.150)

12. Assistance Based on Need (ABON) - Assistance based on need which uses income as a factor of eligibility and is funded wholly by a State, county or local government is excluded from income. (SI 00830.175)

13. Educational and Scholarship Funds – Any educational grant, scholarship, fellowship, or gift established for children affected by Hurricane Katrina is excluded from income in the month of receipt and from resources for 9 months after the month of receipt, if it is used or will be used for paying current or future necessary educational expenses such as tuition and fees at any educational institution. This income and resource exclusion does not apply to any portion of the funds set aside or actually used for food or shelter. Funds maintained and administered by a public or private organization, third-party trust, or Uniform Gift/Transfer to Minors Act account and only paid out at the time of need may not be a resource. (SI 00830.455 and SI 01130.455)

14. Death Benefits – Death benefits used by the beneficiary to pay the expenses of the deceased person’s last illness and funeral expenses are not income. Any amount of death benefits that remain after the last illness and funeral expenses are paid is income to the beneficiary. Death benefits used to pay the deceased person's last illness and funeral expenses are not resources for one calendar month following the month of receipt. Death benefits include but are not limited to the proceeds of life insurance policies, the lump sum death payment from SSA, VA burial benefits, and inheritances. (SI 00830.545, SI 00830.550, and SI 01120.115)