70. What is unearned income?

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SNAP Advocacy Guide

By

Massachusetts Law Reform Institute

Reviewed

January 2024

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Most sources of unearned income are counted in calculating your SNAP benefits¹.

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Countable unearned income includes:

Needs-based cash assistance including TAFDC, EAEDC, SSI and Veterans Services (Chapter 115) benefits². Chapter 115 benefits are non-countable when the benefit is paid directly to a third party (such as landlord) by the Veterans Services Officer.
Cash benefits based on past earnings or service, including Unemployment Insurance, Workers Compensation, Social Security, federal Veteran’s benefits, and other pension benefits³.
Foster care payments received for a child or disabled adult who is included in the SNAP household. These are not countable if you choose to exclude the foster child or adult from your SNAP household⁴^,⁵. See caring for a foster child and providing adult foster care to an older adult or person with disabilities.
Child support and any income from trusts, alimony or other sources paid directly to you. Child support payments made to TAFDC recipients that must be assigned to the Department of Revenue (DOR) are not countable, even if erroneously received by the TAFDC household⁶^,⁷.
Interest payments, dividends, royalties paid from your assets, or other direct money payments or regular pension withdrawals⁸. These monies still count as income, even though the assets themselves do not count. Capital gains from the sale of personal assets are usually excluded as nonrecurring lump sum income.
TAFDC or EAEDC benefits diverted to a landlord or other third party vendor payments⁹^,¹⁰.
The portion of a TAFDC, EAEDC or SSI grant that is not being paid to the household because an individual who is part of the SNAP case was disqualified or is repaying an overpayment due to an intentional failure to comply with requirements of these programs. See what if DTA says you committed fraud or an Intentional Program Violation (“IPV”).

Verification of unearned income

DTA typically uses government databases to verify Social Security Retirement or Disability Insurance (RSDI), Supplemental Security Income (SSI), MA Unemployment Benefits and child support that is paid to a family through the Department of Revenue (DOR).

DTA should use these databases to verify unearned income. DTA should not ask you for a written statement about the benefit amount unless there is a discrepancy between what you reported and what the databases say. See what happens when DTA receives information about you after your SNAP application is approved.

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Countable unearned income includes:

Needs-based cash assistance including TAFDC, EAEDC, SSI and Veterans Services (Chapter 115) benefits². Chapter 115 benefits are non-countable when the benefit is paid directly to a third party (such as landlord) by the Veterans Services Officer.
Cash benefits based on past earnings or service, including Unemployment Insurance, Workers Compensation, Social Security, federal Veteran’s benefits, and other pension benefits³.
Foster care payments received for a child or disabled adult who is included in the SNAP household. These are not countable if you choose to exclude the foster child or adult from your SNAP household⁴^,⁵. See caring for a foster child and providing adult foster care to an older adult or person with disabilities.
Child support and any income from trusts, alimony or other sources paid directly to you. Child support payments made to TAFDC recipients that must be assigned to the Department of Revenue (DOR) are not countable, even if erroneously received by the TAFDC household⁶^,⁷.
Interest payments, dividends, royalties paid from your assets, or other direct money payments or regular pension withdrawals⁸. These monies still count as income, even though the assets themselves do not count. Capital gains from the sale of personal assets are usually excluded as nonrecurring lump sum income.
TAFDC or EAEDC benefits diverted to a landlord or other third party vendor payments⁹^,¹⁰.
The portion of a TAFDC, EAEDC or SSI grant that is not being paid to the household because an individual who is part of the SNAP case was disqualified or is repaying an overpayment due to an intentional failure to comply with requirements of these programs. See what if DTA says you committed fraud or an Intentional Program Violation (“IPV”).

Verification of unearned income

DTA typically uses government databases to verify Social Security Retirement or Disability Insurance (RSDI), Supplemental Security Income (SSI), MA Unemployment Benefits and child support that is paid to a family through the Department of Revenue (DOR).

DTA should use these databases to verify unearned income. DTA should not ask you for a written statement about the benefit amount unless there is a discrepancy between what you reported and what the databases say. See what happens when DTA receives information about you after your SNAP application is approved.

DTA Online Guide

Endnotes

1:

106 C.M.R. §363.220(B)

2:

106 C.M.R. §363.220(B)(1)

3:

106 C.M.R. §363.220(B)(2)

4:

106 C.M.R. §§361.240(F)

5:

363.220(B)(3)