Lottery or Gambling Winnings
  |
This section includes information on income received from lotteries, or any other form of gambling.
Policy
Winnings from lotteries, or any other form of gambling are countable as unearned income in the month received.
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.)
When any participant in an NA budgetary unit receives lottery or gambling winnings equal to or more than the Winnings Reporting Amount in a single game, the entire budgetary unit is no longer eligible to receive NA benefits. See Winnings Reporting for the amount.
NOTE The ineligibility does not apply to CA budgetary units.
When multiple participants shared in the purchase of a ticket, hand, or similar bet, then only the portion of the winnings allocated to the member of the NA budgetary unit is counted toward the NA eligibility determination.
This change in income may be reported in any of the following ways:
●Directly by the NA budgetary unit
●Discovered through system reports
●Reported by a third party
NOTE Lottery winnings information provided by the Arizona Lottery Commission is considered Verified Upon Receipt(g). Additional verification is not required.
Both simplified reporting budgetary units and the Arizona Simplified Nutrition Assistance Program (AZSNAP) budgetary units are required to report lottery or gambling winnings equal to or more than the Winnings Reporting Amount.
When verification is not provided, benefits are stopped allowing for Notice of adverse action or the next workday after the information due date.
The budgetary unit may reapply at any time for NA benefits. When the budgetary unit reapplies, the categorical eligibility criteria does not apply. The application is processed under all of the following income and resource standards:
●The budgetary unit’s gross monthly income cannot exceed the 130% of the current Federal Poverty Limit (FPL).
●Resources need to be verified to determine that the budgetary unit meets the NA resource limit.
When the budgetary unit reapplies, any remaining lottery or gambling winnings are countable as a resource. The budgetary unit have to pass the NA resource limit to be considered eligible for NA benefits again.
NOTE NA budgetary units are required to meet the resource limit upon each reapplication after the ineligibility until they are determined eligible again. Every recertification after that would allow for categorical eligibility.
When the composition of that NA budgetary unit changes or any member of the budgetary unit leaves, all of the following applies:
●The original budgetary unit no longer exists, and any remaining members are considered as a new budgetary unit when they reapply
●A participant who chooses to reapply, alone or as a member of an existing budgetary unit, is considered separate from the unit that had substantial lottery or gambling winnings
Procedures
When additional verification is required to effect changes, send the Information Needed (F011) notice to verify the receipt of lottery or gambling winning equal to or more than the Winnings Reporting Amount.
When verification is not provided, stop the benefits allowing for NOAA or the next workday after the information due date and send the appropriate closure notice.
When FAA received verification of lottery winning after the month of receipt, the income is not keyed for the past month.
When the participant is present, have them sign the Authority to Release (FAA‑1765A) form to contact any companies or businesses involved. The FAA-1765A can be faxed or emailed to the participant's employer when it is not possible to use the Application for Benefits (FAA-0001A) or the HEAplus Authority to Release signed statement.
Verification
System interface and the case file(g) must be reviewed before verification is requested. No additional verification is needed when AZTECS interface or HEAplus hubs have verified the information.
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 Lottery or Gambling Winnings include, and are not limited to, any of the following:
●Federal or state tax forms
●Financial records
●System interface(g) when the participant agrees that the information is accurate.
●Bank records
●Statement from the agency or payer providing the income
●Participant statement verification when one of the following occur:
Obtaining documented or collateral contact verification may cause harm or undue hardship(g) for the participant.
When all of the following occur:
●Other attempts to obtain the verification have failed. This includes documented and collateral contact verification.
●The participant has requested assistance from FAA.
●The worker has evaluated the request for assistance and cannot obtain the verification from another acceptable source.
●The participant statement is not questionable(g).
AZTECS Keying Procedures
Key the WN Unearned Income Code in the INC TYPE field on UNIC.
When verified, for the new application, deny the case with the WN Denial Closure Reason Code and send the Lottery Denial/Closure (F208) notice. For open cases, the case is closed allowing for a notice of adverse action (NOAA).
Key any money remaining as a resource. When the test displays PASS in the FS Resource Determination (FSRD), continue to key all applicable AZTECS screens to process the eligibility determination.
When the case fails the resource determination test, review the information to ensure it is correct. Deny the case on FS Eligibility Determination (FSED) using the WN denial reason code and send the F208 notice. For open cases, the case is closed allowing for a notice of adverse action (NOAA).
Document the case file(g) thoroughly to support keyed codes, amounts, and frequencies. See the AZTECS Data Entry Guide for instructions on keying the AZTECS income screens.
NOTE Documentation must support determinations of eligibility and benefit level. Document in sufficient detail to ensure that any reviewer can assess whether the determination is reasonable and accurate. Include specific information regarding the reason the income is determined to be normal. (See Budgeting Income Documentation Requirements for additional information.)
Legal Authorities
7 CFR 272.17
7 CFR 273.11(r)
7 CFR 273.12
AAC R6-12-101
last revised 10/02/2023