Interest Payments
Interest payments are money earned on any of the following:
●Capital investments such as loans, stocks, bonds
●Checking or savings accounts
Interest payments are considered unearned income and are required to be verified. The income is treated differently based on how the income is received for NA and CA as follows:
●For NA, interest payments are countable as unearned income regardless of how the payments are received.
●For CA, the following apply:
Interest payments left on deposit or converted to additional securities are not countable as unearned income.
Interest payments made directly to the participant as a share of profit are countable as unearned income.
The interest payment is keyed in the INC TYP field on UNIN using one of the following Unearned Income Codes:
●For NA-only cases, the IR ND Unearned Income Code
●For CA-only cases, key one of the following:
IR PY when the interest payment is countable.
IR ND when the interest payment is not countable
●For NA and CA combination cases, key one of the following:
IR ND when the interest payment is countable for NA and not countable for CA
IR PY when the interest payment is countable for both NA and CA
Prorate interest payments over the period it is intended to cover. (See Example
Budgeting Interest Income)