Section 113.107  Lump-Sum Payments and Income Tax Refunds

a)         A lump-sum payment is a one time payment such as retroactive VA, SSA or UI benefits, lottery winnings, insurance settlements, etc.  If the amount of the lump-sum payment and other countable monthly income is sufficient to meet the client's needs prospectively for a period of at least one month, eligibility for assistance does not exist.  However, if continued eligibility exists, the lump-sum payment is budgeted against the payment month following the month in which the lump-sum payment was received.  Any amount remaining in the client's possession after the month of receipt is considered an asset subject to the appropriate asset disregard.

            AGENCY NOTE:  A child's SSI lump-sum payment that is paid directly, on behalf of a child, into a dedicated account is not countable as income when received or as an asset in the month(s) following the month of receipt.

b)         When a lump-sum payment is from SSI, and is not paid into a dedicated account, if continued eligibility for financial assistance does not exist, continue to provide medical assistance only.  An SSI lump-sum payment paid into a dedicated account does not affect financial assistance eligibility.

c)         Income tax refunds shall be considered available assets and are to be considered against the appropriate non-exempt asset limitation of the assistance unit.  One-half of joint tax refunds shall be considered available for each payee.  A client who declares that less than one-half of the joint income tax was received may claim an exception.  Only the amount claimed to be received shall be considered.

d)         If a client is the beneficiary of a life insurance policy any portion of those proceeds not in excess of $1500 used to pay for the funeral/burial expenses of the insured shall be exempt as income.

(Source:  Amended at 26 Ill. Reg. 179, effective January 1, 2002)