IM-162 October 10, 2019; IM-81 August 31, 2006
Exclude the following:
- The portion of a military retirement payment distributed to an ex-spouse under a divorce decree property settlement. This income is not shown on the Income (FMX0) screen for the military retiree.
- Mandatory deductions from military pay for education purposes while the individual is enlisted. Do not include this income on the Income (FMX0) screen.
- Payments to veterans from Aetna Life and Casualty as part of an Agent Orange settlement were excluded, but the fund is no longer active. Monthly VA benefits issued by the Department of Veterans Affairs as a result of exposure to Agent Orange are considered income (Type UI – Source VA).
- Nonrecurring lump sum bonuses: If an EU receives a one time lump-sum bonus, it is exempt from income as a nonrecurring lump-sum payment (see 1115.015.60 Non-recurring Payments). The money is counted as a resource in the month received (see 1110.030.00 Lump Sum Payments). This income is not shown on the Income (FMX0) screen. If an EU receives half of the bonus in a lump sum with the remainder paid in equal annual installments, the bonus is counted as earned income (Type EI – Source BO) (see 1115.005.00 Earned Income).
- Additional payments to members of the United States Armed Forces deployed to a designated combat zone. This exclusion only applies if the additional pay was not received immediately prior to serving in the combat zone (Type UI – Source MD).
Example: Sgt. G is deployed to Korea and has been providing $700.00 to his family. On 01/10/05, Sgt. G receives orders and is deployed to a designated combat zone on 02/02/05. He now provides $1,000.00 to his family. The $300.00 additional income is excluded because he started sending the additional income after his deployment to the designated combat zone. Enter $700.00 as income source code AA and $300.00 as source code MD. The $700.00 source code AA is included for food stamps, Child Care and Temporary Assistance. The $300.00 source code MD is excluded for food stamps, Child Care, and is included for Temporary Assistance.