California Department of Social Services - State Hearings Division
Notes from the Training Bureau - October 30, 2002

A settlement was reached in Yarbrough v. Saenz (Ventura County Superior Court, Case No. CIV 196979). Per the terms of the settlement, counties must cease considering Supplemental Security Income (SSI) as unearned income for children receiving Title IV-E Adoption Assistance Program benefits.

The CDSS and counties were also required to advise AAP families that they must report to the Social Security Administration any AAP benefits they receive on behalf of an adopted child. The adoption agency should advise adoptive parents that the Social Security Administration might deduct AAP from the SSI grant.

Effective February 1, 2002, the Internal Revenue Service (IRS) began offsetting Social Security Administration payments to collect claims for unpaid federal taxes. For food stamp purposes, the income that is intercepted by the IRS is treated as income.