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M21-1, Part V, Subpart i, Chapter 3, Section C – Income Development

Overview


In This Section

This section contains the following topics:
1
2
3
4
Topic
Topic Name

1.  Developing for Recurring Income


Introduction

This topic contains information on developing for recurring monthly income, including

Change Date

June 11, 2015

V.i.3.C.1.a.  General Information on Developing for Recurring Income

When information about recurring income is needed, the following information is usually requested:
  • gross amount of the recurring income
  • date the first check was received
  • date and amount of any retroactive payment received, and
  • dates of any changes in the monthly rate of income.
Note:  Modern Awards Processing-Development (MAP-D) should be used for development whenever possible.
Reference:  For information on development procedures in MAP-D, see the MAP-D User’s Guide.

V.i.3.C.1.b.  Information About Railroad Retirement Benefits

If it is necessary to request information about a claimant’s Railroad Retirement income, see M21-1, Part III, Subpart iii, 4.7.

V.i.3.C.1.c.  Information About Income Tax Returns

For information about developing for income tax returns, see M21-1, Part III, Subpart iii, 4.11.

V.i.3.C.1.d.  Information About Social Security Benefits

Information about Social Security benefits may be obtained directly from the Social Security Administration (SSA) by using the Share application.
If information is not available in Share, ask the claimant to furnish a copy of his/her latest Social Security award or disallowance letter or a statement from SSA, if an award or disallowance letter is not available.
Note:  Social Security income for pension and Parents’ Dependency and Indemnity Compensation beneficiaries is verified via the annual computer match with the SSA, once either type of benefit has been awarded.
References:  For more information on

V.i.3.C.1.e.  Information About Retirement or Annuity Income

For information about retirement or annuity income, ask the claimant to furnish a copy of his/her latest retirement or annuity award letter.
If an award letter is not available, ask the claimant to have the source of the retirement or annuity income send a statement showing the benefit rate and effective date.

V.i.3.C.1.f.  Information About Severance Pay, Accrued Wages, or Vacation Pay

Send Department of Veterans Affairs (VA) Form 21-4192, Request for Employment Information in Connection with Claim for Disability Benefit, to a Veteran’s former employer to request information as to the amount and date of any payment of
  • severance pay
  • accrued wages, or
  • vacation pay.
Reference:  For more information on developing for severance or accumulated leave pay, see M21-1, Part V, Subpart i, 3.C.2.

V.i.3.C.1.g.  Information About Farm Income

For information about developing for farm income, see M21-1, Part V, Subpart i, 3.B.3.

V.i.3.C.1.h.  Information About Business or Rental Income

For information about developing for business or rental income, see M21-1, Part V, Subpart i, 3.B.3.

2.  Developing for Severance or Accumulated Leave Pay


Introduction

This topic contains information on developing for severance or accumulated leave pay, including

Change Date

December 13, 2005

V.i.3.C.2.a.  When to Develop for Severance or Accumulated Leave Pay

Develop for severance or accumulated leave pay when
  • a Veterans Pension claim is filed within 90 days of the date a Veteran’s employment terminated, and
  • evidence of record indicates that the Veteran may have been entitled to severance pay or accumulated leave pay.

V.i.3.C.2.b.  Using VA Form 21-4192 to Obtain Information

Send VA Form 21-4192 to a Veteran’s former employer to request information as to the amount and date of any payment of severance or accumulated leave pay the Veteran received.  The request should include the Veteran’s name and Social Security number to assist the former employer in identifying the Veteran.
If the former employer does not respond
  • send VA Form 21-4192 to the Veteran, and
  • ask that the Veteran have the employer complete the form.

3.  Developing for Child Hardship Exclusion


Introduction

This topic contains information on developing for a child hardship exclusion, including

Change Date

June 11, 2015

V.i.3.C.3.a.  Definition:  Hardship

Per 38 CFR 3.23(d)(6)hardship exists when expenses necessary for reasonable family maintenance exceed the sum of countable annual income plus VA pension entitlement.

V.i.3.C.3.b.  Applicability of the Child Hardship Exclusion

Per 38 CFR 3.272(m), the child hardship exclusion applies only in pension cases in which a Veteran or surviving spouse has a dependent child with countable income that is available to the Veteran or surviving spouse.
If the authorization activity determines that counting the child’s income would cause hardship, it is possible to exclude some or all of the child’s income.
Note:  This exclusion does not apply if the child is the beneficiary.
Reference:  For more information on the child hardship exclusion, see 38 CFR 3.23(d)(6).

V.i.3.C.3.c.  Developing for the Child Hardship Exclusion

If a Veteran or surviving spouse requests an exclusion of a child’s income, provideVA Form 21P-0571, Application for Exclusion of Children’s Income.
Do not develop for hardship if the child’s income is
  • not available to the Veteran or surviving spouse, or
  • otherwise excludable under 38 CFR 3.272(j).
Note:  VA Form 21P-0571 can be used to develop for both availability of child income and the hardship exclusion.

4.  Developing for Interest Income From Net Worth


Change Date

November 20, 2015

V.i.3.c.4.a.  Developing for Interest Income From Net Worth

Initiate development for interest income from net worth if a claimant reports or Federal tax information (FTI) match information shows
  • assets which may be earning interest, but it is not clear whether or not they are,
  • when FTI is not available and interest bearing net worth is $5,000 or more with no interest income reported
  • interest or dividend income of over $20, but does not report the source of the dividends or interest as net worth, or
  • the same amount of interest and net worth, as the claimant most likely confused the two fields.
Important:  Advise the claimant that failure to respond to the request for information will result in a denial of benefits.
Reference:  For more information on when interest income development is required in connection with upfront verification using FTI, see M21-1, Part V, Subpart iii, 1.A.2.f.
11-20-15_Key-Changes_M21-1V_i_3_SecC.doc May 20, 2019 92 KB
Historiical_M21-1V_i_3_SecC_06-11-2015.doc May 20, 2019 68 KB
Change-June-11-2015-Transmittal-Sheet-M21-1MRV_i_3_SecC_TS.docx May 20, 2019 39 KB
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