WAG 08-01-08.

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,
  • inheritances,
  • 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.