Child Support payments received by AFDC recipients which are obligated to the Child Support Enforcement Unit (IV-D) to maintain AFDC eligibility will not be counted as income. This exclusion applies even when payments due under IV-D rules are not actually turned in to the IV-D Unit. (This does not apply to IV-D refunds which are also known as DEFRA refunds. See FSC 5704.1 for an explanation of these refunds.) This also applies to payments received by former AFDC recipients when held by CSEU and applied to previous AFDC payments.

Child support received through an interception of a State or Federal income tax refund will be excluded as a non-recurring lump sum payment. Child support received through interception of a lump sum Worker's Compensation payment will also be excluded as a non-recurring lump sum payment. See FSC 4950 for instructions on handling lump sum payments.

Also see FSC 5704 and FSC 5704.2-5704.3 for an explanation of child

support to be counted as income.