DIVIDENDS (INCOME) (FAM)
Dividends, interest, and royalties paid directly to an individual See also Benefits.
Dividends, interest, and royalties paid from countable resources.
Treatment: Excluded Income
Dividends, interest, and royalties paid from exempt resources.
Treatment: Unearned Income
Exception: When dividends and interest are automatically reinvested in their source, they are not considered income, but part of the resource from which they originated. See Chapter400, Resources.
Dividends are automatically reinvested to purchase additional stock, so are considered a part of the stock resource.
Interest is automatically added to a cash account. It is considered a part of the account resource to which it was added.
Treatment: Resource. See Chapter400, Resources.