(A)
Definition.
(1)
Income is considered to be lump sum when it is received as a one-time,
nonrecurring payment. Exclusions from the lump sum income calculation are
provided in
106
CMR 704.240(B).
(2) Lump sum income may be either earned or
unearned income. It does not include contractual salaries.
(3) Lump sum income includes, but is not
limited to, the following types of income:
(a)
Accumulation of retroactive income such as Railroad Retirement, Federal
Veterans' Benefits, Workers' Compensation that represents loss of income,
retroactive Social Security payments, Unemployment Compensation, child support,
retroactive wages, and compensation for lost wages received under the
Compensation to Victims of Violent Crimes Act; and
(b) Other payments in the nature of a
windfall, such as lottery winnings, inheritances, settlements and awards that
are not totally or partially received as a reimbursement for a specified items
and used to pay for them. Whatever portion of the lump sum income that is
received as a reimbursement for specified items and used to pay for them is
considered noncountable.
(4) Verification of lump sum income is by an
appropriate document, such as:
(a) a copy of
the benefit or award letter;
(b) a
copy of the check or payment document;
(c) a written statement from the agency or
person making the payment; and
(d)
if applicable, a written statement from the agency, person making the payment,
or attorney representing the client, that states what specific items are being
reimbursed as part of the lump sum payment and receipts that verify the payment
for the specific items.
(B)
Exclusions from Lump Sum
Income. The following types of lump sum income are excluded:
(1) Lump sum income received by a stepparent
who is not a member of the assistance unit;
(2) Lump sum income that is noncountable as
provided in
106
CMR 704.250;
(3) Any portion of a Workers' Compensation,
property damage, personal injury, Compensation to Victims of Violent Crimes
Act, or death settlement or award, except for compensation for lost wages, that
is received as a reimbursement for specified items and used to pay for such
items is excluded as income in accordance with
106
CMR 704.250.
This is verified by a written statement from the agency, person
making the payment, or attorney representing the client, that states what
specific items are being reimbursed as part of the lump sum payment and
receipts from the assistance unit that verify the payment for the specific
items;
(4) Any portion of
the lump sum income verified as being used to pay for back bills, day-to-day
living expenses and obligations incurred while waiting for the lump sum income.
For purposes of
106
CMR 704.240(B)(4),
day-to-day living expenses and obligations of the assistance unit shall be
limited to the cost for:
(a) health insurance
premiums, or health care treatment or services essential for the treatment of
members of the assistance unit to the extent that such costs were not covered
by any health insurance or MassHealth. Expenses incurred as the result of
cosmetic surgery unrelated to illness, accident or surgery are not allowable.
Expenditures which would not constitute essential health care treatment include
those for vacations, recreational equipment such as swimming pools or athletic
equipment, extravagant items, and leisure activities.
These costs must be verified by copies of paid medical bills,
health insurance premium payments, or both;
(b) actual transportation costs or $150 per
month, whichever is less, not covered by any other source.
These costs must be verified by copies of paid bills or
receipts for transportation expenses;
(c) replacement or repair of existing
household furniture or the purchase of household furniture when the family did
not previously own such items, or the replacement or repair of an existing
defective refrigerator, home heater, stove, oven, washer, and/or dryer, or the
purchase of said appliances where the family did not previously own such items,
for the total actual costs or $2500, whichever is less.
These costs must be verified by copies of paid bills or
receipts;
(d) basic repairs
of a home owned and lived in by the assistance unit, exclusive of remodeling,
for the total actual costs or $2500, whichever is less.
These costs must be verified by a copy of the deed to the
property and copies of paid bills or receipts;
(e) payments for court-ordered judgments
including alimony and/or child support.
These costs must be verified by copies of the court orders and
copies of the canceled checks or receipts showing the amount and date of
payment and to whom paid; and
(f) payments for obligations to local, state
and federal governments.
These costs must be verified by a copy of a canceled check or
receipt showing the amount and date of payment and to whom
paid;
(5) up to
$150,000 of lump sum income from a personal injury settlement that is
immediately placed into an irrevocable trust and is for the benefit of an
injured person who is legally incompetent.
(a)
Distributions from the trust are not counted if the terms of the trust restrict
distributions to those needed to meet the injured person's special needs which
result from the injury. Special needs include, but are not limited to, medical
care such as rehabilitative therapies, pain management and personal care
attendants, education-related expenses, vocational training or rehabilitation,
transportation-related needs, such as the purchase and/or retrofitting of a
van, and special equipment, clothing or services for the disabled. All other
distributions are countable. Distributions made to the trustee for the
reasonable costs of administering the trust will not be counted.
Distributions which would not be considered for a person's
special needs include vacations, recreational equipment such as swimming pools,
extravagant items, and leisure activities.
Verification of an injured person's legal incompetence shall be
by:
(b) a document as
provided in
106
CMR 703.220(B):
Verification verifying that the injured person is younger than
18 years old, if applicable; and
(c) a document from the court that appoints a
guardian or conservator for the injured person or otherwise declares that the
injured person is incompetent.
Verification of the amount and terms of the trust shall be by a
copy of the trust document.
Verification that distributions were used to meet special needs
shall be by copies of paid bills or receipts showing the amount and date of
payment, and to whom paid, and medical documentation, if
appropriate.
(7)
The first $600 of lump sum income is noncountable income in the month of
receipt. Any portion that exceeds the $600 amount is countable in the month of
receipt.
(C)
Availability for Needs. Lump sum income, that is not
excluded as provided in
106
CMR 704.240(B), received by
a member of the filing unit is considered available income to meet the needs of
all members of the assistance unit at the time of its receipt resulting in a
specified period of ineligibility in accordance with
106
CMR 704.240(D).
(D)
Calculation of Period of
Ineligibility.
(1) To calculate
whether the assistance unit is ineligible due to lump sum income:
(a) Add the filing unit's earned lump sum
income to any other earned income received by the filing unit or deemed to the
filing unit and deduct applicable disregards in accordance with
106
CMR 704.270,
704.275,
704.280 and
704.281. Add the result of
this calculation to the filing unit's unearned lump sum income and any other
countable unearned income received by the filing unit or deemed to the filing
unit;
(b) If the total of
106
CMR 704.240(D)(l)(a) is less
than or equal to the appropriate Need Standard for the TAFDC assistance unit or
standard of assistance for the EAEDC assistance unit, the assistance unit
remains eligible and the income is deducted from the Need Standard for TAFDC or
the standard of assistance for EAEDC; or
(c) If the total of
106
CMR 704.240(D)(l)(a) is
greater than the appropriate Need Standard for the TAFDC assistance unit or
standard of assistance for the EAEDC assistance unit, the assistance unit is
ineligible.
(2) Any
period of ineligibility is determined as follows:
(a) Divide the total income in
106
CMR 704.240(D)(l)(a) by the
appropriate Need Standard for the TAFDC assistance unit or standard of
assistance for the EAEDC assistance unit. The result will be the number of
months in the period of ineligibility;
(b) Any remainder in
106
CMR 704.240(D)(2)(a) is
considered unearned income in the first month following the period of
ineligibility and is deducted from the appropriate Need Standard for the TAFDC
assistance unit or standard of assistance for the EAEDC assistance unit,
provided there is a reapplication for assistance during that month; and
(c) The period of ineligibility
begins on the first day of the cyclical month of receipt of the lump sum
income. Any assistance received during the ineligibility period is considered
an overpayment in accordance with
106
CMR 706.200: Overpayments and
Underpayments.
(E)
Change in
Circumstances. Once a determination of the period of ineligibility
is made, it remains in effect for all members of the filing unit except in
situations resulting in recalculation as provided in
106
CMR 704.240(F). Changes in
income for members of the filing unit shall not alter the period of
ineligibility for any of the members of the ineligible assistance unit.
A new member to the assistance unit during the period of
ineligibility, if otherwise eligible, shall receive a grant amount equal to the
appropriate Need Standard for TAFDC or standard of assistance for EAEDC, less
any countable deductible income during the remainder of the period of
ineligibility.
(F)
Situations Resulting in Recalculation. The period of
ineligibility cannot be altered or recalculated for any member of the
ineligible assistance unit, except in the situations stated below.
Recalculation can only be retroactive to the month in which the event that
caused the recalculation occurred. The ineligibility period may only be
eliminated or shortened for the remaining months when:
(1) The Standard of Need for TAFDC or the
standard of assistance for EAEDC is increased or changed for the ineligible
assistance unit in accordance with
106
CMR 704.410 for TAFDC and 704.440 for
EAEDC;
(2) The lump sum income was
used to pay for day-to-day living expenses and obligations in accordance with
106
CMR 704.240(B)(4),
Verification shall be in accordance with
106
CMR
704.240(B)(4);
(3) As a direct result of a natural disaster,
the ineligible assistance unit was required to spend all or a portion of the
lump sum income on day-to-day living expenses as defined in
106
CMR 704.240(B)(4), and/or
shelter, fuel, utilities, food and/or clothing costs above those amounts paid
by the ineligible assistance unit for such costs the month immediately
preceding the month the disaster occurred; provided, however, that the
additional costs are limited to the actual costs or $2500, whichever is less.
Verification of the natural disaster is a copy of a written
report from the local fire or police department or Red Cross;
(4) The ineligible assistance unit can no
longer access the lump sum income because of a natural disaster and cannot pay
for the day-to-day living expenses as defined in
106
CMR 704.240(B)(4) and/or
shelter, fuel, utilities, food and/or clothing costs equal to or less than
those paid by the ineligible assistance unit for the month immediately
preceding the month the disaster occurred.
Verification of the natural disaster shall be by a copy of a
written report from the local fire or police department or Red Cross.
Verification of the day-to-day living expenses shall be in
accordance with
106
CMR
704.240(B)(4);
(5) The ineligible assistance unit was
required to spend the lump sum income because of an abusive relationship on
day-to-day living expenses as defined in
106
CMR 704.240(B)(4), and/or
shelter, fuel, utilities, food and/or clothing; or the assistance unit can no
longer access the lump sum income and cannot pay for day-to-day living expenses
as defined in
106
CMR 704.240(B)(4), and/or
shelter, fuel, utilities, food and/or clothing;
Verification of an abusive relationship shall be by a copy of
court, medical, criminal, child protective services, battered victims'
services, or law enforcement records that indicate the parent or absent parent
might inflict physical or emotional harm on the child or relative if the
ineligible assistance unit tried to access the lump sum income;
or
(6) The lump sum income
was used to pay for food, not to exceed the maximum SNAP allotment for a family
of that size, provided the assistance unit is not otherwise eligible for
SNAP.
(G)
Ineligibility for TAFDC. Any member of the filing unit
who is ineligible for EAEDC due to lump sum income is concurrently ineligible
for TAFDC.
(H)
Ineligibility for EAEDC. Any member of the filing unit
who is ineligible for TAFDC due to lump sum income is concurrently ineligible
for EAEDC.
