PM 08-04-02: Diverted Income

WAG 08-04-02.

Money that is legally obligated and otherwise payable to the SNAP unit, but is diverted by the payment provider to a 3rd party for a unit expense, is nonexempt income and is not exempted as a vendor payment. See PM 08-04-04-n for vendor payments.

Examples of diverted income include but are not limited to: garnisheed wages; General Assistance (GA) disbursing orders; GA payments made directly to a vendor; monthly TANF, AABD, or GA benefits made directly to a protective payee; or support or alimony payments legally obligated to a unit member.

The following situations are not diverted income and are exempt as vendor payments:

• Rent paid directly to the unit's landlord by a unit member's employer in addition to regular wages is a vendor payment.
• Third party payments made by DHS or a Local GA Unit for a household expense that would not normally be made as a cash payment, are vendor payments. The payment is exempt even if the unit has the option of receiving it as a direct cash payment.
• Child support or alimony payments directed by a court order or other legally binding agreement to go to a 3rd party rather than to the unit are vendor payments; for example, mortgage payments paid directly to the bank. This includes support payments that are not required by a court order or legally binding agreement (payments in excess of a court ordered amount or written agreement). The income is exempt even if the unit agrees to the arrangement.
• GA payments made to a provider for medical benefits, child care, utilities, or temporary shelter that has no cooking facilities or a refrigerator, are a vendor payment.