LUMP SUM EARNED INCOME (INCOME) (AAM)

SR 94-04 Dated 04/94

Previous Policy

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Payment for work performed over a period of more than 1 month.

Treatment: Earned Income

1. Divide the total lump sum by the number of months in which work was performed to determine a monthly average.

2. If the lump sum is a result of self-employment, subtract the monthly cost of doing business from the monthly average (see Self-Employment )

3. Consider the monthly average earned income as available only for a period of time equal to the number of months work was performed.