Lump Sum Payments
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This section has information about lump sum payments.
Policy
One time nonrecurring Lump sum(g) payments are not countable as unearned or earned income. FAA treats nonrecurring lump sum payments as a resource.
Lump sum payments include back payments for initial months or restored benefits. Lump sum payments are paid by, and are not limited to, any of the following:
●Assistance Payments
●Child Support
●Social Security Administration
●Veterans Administration (VA) benefits
●Unemployment Insurance (UI) benefits
●Railroad Retirement (RR) benefits
●Indian Gaming Industry Per Capita Disbursements
●Profit Sharing Dividends
Recurring lump sum payments that can be anticipated, 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, income is required to be verified for all of the following before eligibility is determined:
●When reported on a new application, during the interview of a new application, or changes reported before the eligibility determination of a new application.
●For changes reported 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(g) old.
For CA, all income is required to be verified before determining eligibility.
Examples of verification that can be used for lump sum payments include, and are not limited to, any of the following:
●Assistance payments records
●AZTECS INTERFACE INQUIRY MENU (ININ) for verification of SSA or SSI income
●Benefit award letters from SSA, Statement of Earnings VA, and other agencies
●Bank records
●Agency or payer providing the income
●Court records or court orders
●Division of Child Support Services (DCSS) documents or print outs
●Signed statement from the agency or payer providing the income
Legal Authorities
AAC R6-12-101 (55)
AAC R6-12-505
AAC R6-12-905.
7 CFR 273.9 (c) (8)
last revised 10/27/2025 effective 09/02/2025