Income received as a onetime only payment that does not continue on a regular basis, or as a retroactive payment for income that continues on a regular basis, is lump sum income. Examples of lump sum income include, but are not limited to:
- personal injury settlements,
- workers' compensation injury settlements,
- insurance settlements,
- lottery winnings,
- retroactive Social Security payments, or
- retroactive Unemployment Insurance Benefits.
Income tax refunds, including Earned Income Credit payments, are not lump sum income.
Consider a lump sum payment as available income for the month of receipt. Any amount remaining after the month of receipt is an asset.
If a portion of a lump sum payment is used to pay for expenses related to receipt of the lump sum, that portion is exempted.
For Cash cases, see PM 10-05-00 for budgeting lump sum income.