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Pin-up illustration by: Conor Hughes. Solicitation: Writer & Inker: Karl Kesel Penciler: Tom Grummett Colorist: Bill Crabtree Design Effect: L.

§ 416.1124. Unearned income we do not count.(a) General. While we must know the source and amount of all of your unearned income for SSI, we do not count all of it to determine your eligibility and benefit amount. We first exclude income as authorized by other Federal laws (see paragraph (b) of this section). Then we apply the other exclusions in the order listed in paragraph (c) of this section to the rest of your unearned income in the month. We never reduce your unearned income below zero or apply any unused unearned income exclusion to earned income except for the $20 general exclusion described in paragraph (c)(12) of this section.(b) Other Federal laws.

Some Federal laws other than the Social Security Act provide that we cannot count some of your unearned income for SSI purposes. We list the laws and the exclusions in the appendix to this subpart which we update periodically.(c) Other unearned income we do not count. We do not count as unearned income—(1) Any public agency's refund of taxes on real property or food;(2) Assistance based on need which is wholly funded by a State or one of its political subdivisions.

(For purposes of this rule, an Indian tribe is considered a political subdivision of a State.) Assistance is based on need when it is provided under a program which uses the amount of your income as one factor to determine your eligibility. Assistance based on need includes State supplementation of Federal SSI benefits as defined in subpart T of this part but does not include payments under a Federal/State grant program such as Temporary Assistance for Needy Families under title IV-A of the Social Security Act;(3) Any portion of a grant, scholarship, fellowship, or gift used or set aside for paying tuition, fees, or other necessary educational expenses. However, we do count any portion set aside or actually used for food or shelter;(4) Food which you or your spouse raise if it is consumed by you or your household;(5) Assistance received under the Disaster Relief and Emergency Assistance Act and assistance provided under any Federal statute because of a catastrophe which the President of the United States declares to be a major disaster. See § for a more detailed discussion of this assistance, particularly the treatment of in-kind support and maintenance received as the result of a major disaster;(6) The first $60 of unearned income received in a calendar quarter if you receive it infrequently or irregularly.

We consider income to be received infrequently if you receive it only once during a calendar quarter from a single source and you did not receive it in the month immediately preceding that month or in the month immediately subsequent to that month.