N.M. Admin. Code § 8.248.500.17

Current through Register Vol. 35, No. 21, November 5, 2024

Section 8.248.500.17 - UNEARNED INCOME

Unearned income is all income that is not earned income. Unearned income is counted at the earliest of the following points: when received, when credited to the recipient, or when set aside for the recipient's use.

A. Unearned income includes, but is not limited to:

(1) social security;

(2) railroad retirement;

(3) veterans benefits;

(4) temporary assistance for needy families (TANF);

(5) pensions;

(6) annuities;

(7) alimony and support payments;

(8) rents;

(9) workmen's compensation;

(10) in-kind support and maintenance;

(11) death benefits;

(12) royalties not counted as earned income; and

(13) dividends and interest not otherwise excluded under SSI rules.

B. Unearned income disregards:

(1) In-kind support and maintenance is any food and shelter that is given to the applicant/spouse or received because someone else pays for it. This includes room, rent, mortgage payments, real property taxes, heating fuel, gas, electricity, water, sewage, and garbage collection services. The maximum amount of income countable for in-kind support and maintenance is limited to one third of the monthly SSI benefit rate for an individual or a couple, if the applicant's spouse is counted, or the current market value of the support, whichever is lower.

(2) When benefits are reduced for overpayments or garnishments, count the gross benefit before deductions.

(3) If part of a payment reflects expenses the applicant/spouse incurred in getting the payment, such as legal fees, damages, or medical expenses, incurred because of an accident, reduce the payment by the amount of the expenses. Do not reduce the payment by the amount of personal income taxes owed on the payment.

(4) Subtract from veterans benefits any amount included in the payment for a dependent. If the applicant/spouse is the dependent, count the portion of the benefit attributable to the dependent if they reside with the veteran or receive their own separate payment from the department of veteran affairs.

(5) Subtract from death benefits the expenses of the deceased person's last illness and death paid by the recipient.

C. Unearned income exclusions: The following types of unearned income are not considered for purposes of determining LIS eligibility:

(1) SSI benefits;

(2) any public agency's refund of taxes on real property or food;

(3) need-based assistance wholly funded by a state or one of its subdivisions, including state supplementation of SSI benefits but not a federal/state grant program such as TANF;

(4) any portion of a grant, scholarship, fellowship, or gift used for paying tuition, fees, or other educational expenses; any portion set aside or used for food, clothing or shelter is countable;

(5) food which the applicant or their spouse raise if it is consumed by them or their household;

(6) assistance received under the Disaster Relief and Emergency Assistance Act and assistance provided under any federal statute because of a catastrophe which the president of the United States declares to be a major disaster;

(7) Alaska longevity bonus payments made to an individual who is a resident of Alaska and who, prior to October 1, 1985, met the 25-year residency requirement for receipt of such payments in effect prior to January 1, 1983, and was eligible for SSI;

(8) payments for providing foster care to a child who was placed in the applicant's home by a public or private nonprofit child placement or child care agency;

(9) any interest earned on excluded burial funds and any appreciation in the value of an excluded burial arrangement which are left to accumulate and become part of the separate burial fund;

(10) home energy assistance (any assistance related to meeting the costs of heating or cooling a home);

(11) one-third of support payments made to or for the applicant by an absent parent if the applicant is a child;

(12) the first $20 of any unearned income in a month other than income in the form of in-kind support and maintenance received in the household of another and income based on need;

(13) housing assistance-any assistance paid with respect to a dwelling unit under:

(a) the United States Housing Act of 1937;

(b) the National Housing Act;

(c) Section 101 of the Housing and Urban Development Act of 1965;

(d) Title V of the Housing Act of 1949; or

(e) Section 202(h) of the Housing Act of 1959;

(14) any interest accrued on and left to accumulate as part of the value of an excluded burial space purchase agreement;

(15) gift of a domestic travel ticket received by the applicant or their spouse and not converted to cash;

(16) payments made to the applicant or their spouse from a fund established by the state to aid victims of crime;

(17) relocation assistance provided to the applicant or their spouse by the state or local government that is comparable to relocation assistance provided under title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970;

(18) hostile fire pay received from one of the uniformed services;

(19) the first $60 of unearned income received per calendar quarter that is received too irregularly or infrequently to be counted as income; or

(20) any dividends or interest earned on countable resources, any dividends or interest earned on resources excluded under a federal statute other than the Social Security Act, and any dividends or interest excluded under the Social Security Protection Act of 2004.

N.M. Admin. Code § 8.248.500.17

8.248.500.17 NMAC - N, 2-1-06, Adopted by New Mexico Register, Volume XXXV, Issue 12, June 25, 2024, eff. 7/1/2024