Interest Payments
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This section includes interest income from investments, mortgages, sales contracts and financial accounts.
Policy
Interest payments are money earned by any of the following:
●Capital investments such as stocks, and bonds.
●Mortgage or sales contract
●Checking or savings accounts.
●Cryptocurrency(g) accounts.
FAA considers a contract or mortgage as income producing property, when it is producing monthly income at least 1% of the property Current Market Value(g). See Sales Contracts for information.
Interest payments are considered unearned income. FAA treats interest differently based on all of the following:
●For NA, interest payments are countable as unearned income regardless of how the payments are received.
●For CA, all of the following apply:
Interest payments left on deposit or converted to additional investments are not countable as unearned income.
Interest payments made directly to the participant as a share of profit are countable as unearned income.
Countable income is used to determine an income budget. (See Income Budgeting to see how FAA determines the income budget.) FAA needs to know about income that is both countable and not countable to determine whether a budgetary unit’s income is exceeding their expenses. (See Income Eligibility for more information about how FAA uses countable and not countable income.)
Verification
The participant has the primary responsibility for providing verification. (See Participant Responsibilities – Providing Verification for additional policy.)
For NA, all of the following income is required to be verified before eligibility is determined:
●Reported on a new application, during the interview of a new application, or changes reported before the eligibility determination of a new application.
●Changes after an eligibility determination of a new application (e.g., a renewal application, mid approval contact, etc.) and any of the following apply:
The source of the income has changed.
The income is questionable(g) or unclear(g).
The reported income amount has changed by $51 or more.
The previous verification in the case file is more than 59 calendar days old.
For CA, all income is required to be verified before determining eligibility.
Examples of verification that can be used for interest payments include, and are not limited to, any of the following:
●Bank records
●Agency or payer providing the income
●Court records or court orders
●Divorce or separation papers or contact with the Clerk of the Court
●Federal or state tax forms
●Insurance policies
●Mortgages and Sales Contracts
●Signed statement from the agency or payer providing the income
Legal Authorities
AAC R-12-503
7 CFR 273(b)(2)(v)
last revised 10/02/2023