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Chapter 388-455 WAC

Last Update: 8/22/13

LUMP SUM INCOME

WAC Sections

HTMLPDF388-455-0005How do lump sum payments affect benefits?
HTMLPDF388-455-0010When and how does the department treat lump sum payments as a resource for cash assistance programs?
HTMLPDF388-455-0015When and how does the department treat lump sum payments as income for cash assistance programs?


PDF388-455-0005

How do lump sum payments affect benefits?

(1) A lump sum payment is money that someone receives but does not expect to receive on a continuing basis.
(2) For cash assistance, we count a lump sum payment:
(a) As a resource, under WAC 388-455-0010, if it was awarded for wrongful death, personal injury, damage, or loss of property.
(b) As income, under WAC 388-455-0015, if it was received for any other reason, with the exception of subsection (3) and (4) of this section.
(3) For cash assistance programs, tax refunds and earned income tax lump sums are excluded as income and excluded as a resource for twelve months from the date of receipt.
(4) For Basic Food, we count lump sum payments for a previous period as a resource under WAC 388-470-0055. We count any amount for current or future months as income to your assistance unit.
[Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.500, 74.04.510, 74.08.090, 74.08A.120, and 2011 1st sp.s. c 15. WSR 13-18-007, § 388-455-0005, filed 8/22/13, effective 10/1/13. Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057, 74.08.090, chapter 74.12 RCW, and The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. WSR 11-21-025, § 388-455-0005, filed 10/11/11, effective 10/29/11. Statutory Authority: RCW 74.08.090 and ARRA of 2009, Public Law 111-5, Section 5006(b); 42 C.F.R. 435.601, EEOICPA of 2000, Public Law 106398, Sec. 1, app., Title XXXVI (Oct. 30, 2000) (section 1 adopting as Appendix H.R. 5408), Section 3646 of the Appendix. WSR 10-15-069, § 388-455-0005, filed 7/16/10, effective 8/16/10. Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057, 74.04.510, and 74.08.090. WSR 08-11-105, § 388-455-0005, filed 5/20/08, effective 7/1/08. Statutory Authority: RCW 74.08.090 and 74.04.510. WSR 99-24-008, § 388-455-0005, filed 11/19/99, effective 1/1/00.]



PDF388-455-0010

When and how does the department treat lump sum payments as a resource for cash assistance programs?

(1) If you receive a lump sum payment, we count it as a resource if it was awarded for:
(a) Wrongful death;
(b) Personal injury;
(c) Damage; or
(d) Loss of property.
(2) If some of your lump sum payment is designated for medical bills or to repair or replace damaged property, we do not count the designated amount as a resource for sixty days starting the month after you received the payment. After the sixty day period, we count all of the lump sum payment that remains as a resource.
[Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.500, 74.04.510, 74.08.090, 74.08A.120, and 2011 1st sp.s. c 15. WSR 13-18-007, § 388-455-0010, filed 8/22/13, effective 10/1/13. Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057, 74.04.510, and 74.08.090. WSR 08-11-105, § 388-455-0010, filed 5/20/08, effective 7/1/08. Statutory Authority: RCW 74.08.090 and 74.04.510. WSR 99-24-008, § 388-455-0010, filed 11/19/99, effective 1/1/00.]



PDF388-455-0015

When and how does the department treat lump sum payments as income for cash assistance programs?

This section applies to cash assistance programs.
(1) If you receive a lump sum payment that is not awarded for wrongful death, personal injury, damage, or loss of property, we count this payment as income to your assistance unit. We budget this income according to effective date rules under WAC 388-418-0020.
(2) For cash assistance, if you cannot access some or all of your lump sum payment for reasons beyond your control, we will adjust the amount we count as income to your assistance unit as described under WAC 388-450-0005.
(3) To decide the amount of your lump sum we count as income, we take the following steps:
(a) First, we subtract the value of your current resources from the resource limit under WAC 388-470-0005;
(b) Then, we subtract the difference in (3)(a) from the total amount of the lump sum; and
(c) The amount left over is what we count as income, as specified in WAC 388-450-0025 and 388-450-0030.
(4) When the countable amount of the lump sum payment is:
(a) Less than your payment standard plus additional requirements, we count it as income in the month it is received.
(b) More than one month's payment standard plus additional requirements but less than two months:
(i) We count the portion equal to one month's payment standard plus additional requirements as income in the month it is received; and
(ii) We count the remainder as income the following month.
(c) Equal to or greater than the total of the payment standard plus additional requirements for the month of receipt and the following month, we count the payment as income for those months.
(5) If you receive a one-time lump sum payment, and you are ineligible or disqualified from receiving cash benefits:
(a) We allocate the payment to meet your needs as described under WAC 388-450-0105; and
(b) Count the remainder as a lump sum payment available to eligible members of your assistance unit according to the rules of this section.
[Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.500, 74.04.510, 74.08.090, 74.08A.120, and 2011 1st sp.s. c 15. WSR 13-18-007, § 388-455-0015, filed 8/22/13, effective 10/1/13. Statutory Authority: RCW 74.08.090 and ARRA of 2009, Public Law 111-5, Section 5006(b); 42 C.F.R. 435.601, EEOICPA of 2000, Public Law 106398, Sec. 1, app., Title XXXVI (Oct. 30, 2000) (section 1 adopting as Appendix H.R. 5408), Section 3646 of the Appendix. WSR 10-15-069, § 388-455-0015, filed 7/16/10, effective 8/16/10. Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057, 74.04.510, and 74.08.090. WSR 08-11-105, § 388-455-0015, filed 5/20/08, effective 7/1/08. Statutory Authority: RCW 74.08.090 and 74.04.510. WSR 99-24-008, § 388-455-0015, filed 11/19/99, effective 1/1/00.]