When is an item received in a month classified as income?

The reasoning behind classifying an item received in a month as income is closely tied to its potential to affect an individual's financial resources. When an item is received, it is considered income unless it transitions into a resource the following month. This means that if the item is expected to be retained and adds to the person's overall financial resources in subsequent months, it will not be classified as income for that specific month.

By contrast, if someone receives an item that they do not maintain as an asset, such as cash received but immediately spent, it does not impact the individual's financial resource status beyond the month of receipt. Thus, the classification hinges on the idea that items retained beyond the month in which they are received would transition into resources. This distinction is crucial for understanding how income and resources are treated for eligibility and benefits calculations, particularly in the context of Social Security Administration guidelines.