TN 80 (04-99)

Citations:

20 CFR 416.1123(b)(2)

A. Policy

Unearned income includes amounts withheld from unearned income because of a garnishment or to make certain other payments (such as payment of Medicare premiums).

Unearned income includes amounts withheld from unearned income whether the withholding is:

• purely voluntary;

• to repay a debt; or

• to meet a legal obligation.

NOTE:  This policy does not apply to amounts withheld to pay the expenses of obtaining the income since such amounts are not income. See SI 00830.100.

B. Kinds of withholdings

Some items for which amounts may be withheld but considered received are:

• Federal, State, or local income taxes;

• health or life insurance premiums;

• SMI premiums;

• union dues;

• penalty deductions for failure to report changes;

• loan payments;

• garnishments;

• child support payments (court ordered or voluntary (see SI 01320.145 for an exception for deemors));

• service fees charged on interest-bearing checking accounts;

• inheritance taxes;

• guardianship fees if presence of a guardian is not a requirement for receiving the income (see SI 00830.100).

C. Procedure

Use documents in the individual's possession or contact the source of the payment to verify the amount withheld. Add the amount withheld to the amount received and consider the total as unearned income from that source.

D. Reference

Overpayment involved, SI 00830.110