Current through Register 1531, September 27, 2024
The types of countable income generally are as follows:
(A)
Earned Income.
Earned income is income, in cash or in kind, earned through employment or
self-employment. Earned income may be received as wages, salary, tips,
commissions, or in kind. For employees, earned income is the total gross amount
received.
With respect to self-employment, earned income is the total
gross income less total business expenses. See
106
CMR 704.210(E) and (F) for
an explanation of income from real estate, roomers and boarders, and business
expenses;
(B)
Unearned Income. Unearned income is all income that a
person does not earn through employment. Unearned income includes, but is not
limited to:
(1) Dividends;
(2) Interest;
(3) Unemployment Compensation
payments;
(4) Pensions;
(5) Social Security (RSDI)
benefits;
(6) Veterans' benefits,
except as provided in
106
CMR 702.720: Veterans' Services
Benefits for EAEDC;
(7)
Contributions, except as provided in
106
CMR 704.120 and
704.250; and
(8) Certain income from real estate as
provided in
106
CMR 704.210(E);
(C)
Contribution From
a Non-legally Responsible Person(s). Contributions from
non-legally responsible persons that meet the entire cost of one or more of the
needs below is considered countable income for calculation of the grant amount
only and is deducted using the standard values below.
|
RENT OR MORTGAGE |
Unheated Facility |
$102.00 |
|
Heated Facility |
126.30 |
|
FUEL | |
27.90 |
|
UTILITIES | |
18.60 |
|
FOOD (Individual) | |
41.80 |
(D)
Deemed Income.
(1)
The income, excluding the types of noncountable income provided in
106
CMR 704.250, of the following persons, who
live in the same household with the TAFDC assistance unit, is deemed to the
filing unit to determine eligibility and the grant amount in accordance with
106
CMR 704.235(A) through (C):
(a) stepparents living with the natural or
adoptive parent of the dependent child;
The income of a stepparent living with the parent of a minor
parent as defined in
106
CMR 704.236 is excluded when determining the
eligibility of the minor parent unless the TAFDC assistance unit includes the
minor parent as a dependent child;
(b) parent(s) of minor parents as defined in
106
CMR 704.236; and
(c) persons who have a legal obligation of
support as defined in
106
CMR 704.330(B)(1) with the
exception of the spouse of a pregnant woman as specified in
106
CMR 704.210(D)(2) and
(3).
(2) The income, excluding the types of
non-countable income provided in
106
CMR 704.250, of the spouse of the EAEDC
applicant or client, who lives in the same household with the EAEDC applicant
or client, is deemed to the filing unit to determine eligibility and the grant
amount in accordance with
106
CMR 704.335. (Note:
formerly found at
106
CMR
204.210(D)(2)).
(3) The income, excluding the types of
noncountable income provided in
106
CMR 704.250, of the spouse of the otherwise
eligible TAFDC pregnant woman, who lives in the same household, are deemed to
the filing unit to determine eligibility in accordance with
106
CMR 704.235.
(E)
Real Estate
Income.
(1) When an applicant or
client receives income from rental or commercial property, he or she is
considered self-employed. This income can be earned or unearned.
The income is unearned if the property is managed by a rental
agency for the applicant or client who has no responsibility for the
income-producing property. This unearned income, less business expenses only,
is considered to determine eligibility and the grant amount.
The income is earned if the client collects rents and provides
services to maintain the property.
Deductions from earned real estate income are allowed as
provided in
106
CMR 704.210(E)(2) through
(6).
(2) Business expenses include carrying
charges, the cost of fuel and utilities provided to tenants, maintenance and
repair costs.
(a)
Carrying
Charges. Carrying charges consist of current taxes less any
abatements, betterment taxes, interest and principal payments on the mortgage,
water bills, and fire insurance premiums. Carrying charges must be used in
grant calculations as monthly amounts and verified.
(b)
Fuel and
Utilities. The cost of fuel and utilities provided to tenants is
based on either actual costs averaged on a yearly basis and used in grant
calculations as a monthly amount or on projected monthly costs. If actual costs
are used, they must be verified. If projected amounts are used, verification
shall be by a written statement of the projected costs from the applicant or
client.
(c)
Maintenance
and Repair Costs. Maintenance and repair costs of $20 per month
per rented unit may be routinely allowed as a business expense. If the client
verifies that maintenance or repair costs exceed $20 per month per rented unit,
the excess amount is allowed in calculating the amount of available
income.
(3) If the
applicant or client lives in an apartment in the same house from which he or
she receives rental income, the business expenses are partially deducted to
determine rental income in the following ways:
(a) For a two-family house, 1/2 of the
carrying charges will be allowed as a business expense, for a three-family
house,
2/3 will be
allowed, and so forth; and
(b) When
the applicant or client provides his or her own heat and/or utilities and that
of the tenants from a single heating unit/meter, the expenses are prorated as
in 106 CMR
704.210(E)(3)(a).
(4) If the applicant or client
lives in an apartment in the same house from which he or she receives rental
income and provides heat to the tenants from separate heating units or
utilities from separate meters, these expenses are fully deducted to determine
rental income.
(5) If the applicant
or client receives rental income from property in which he or she does not live
in, the business expenses are fully deducted from the total rental
income.
(6) If the rental income is
earned income as defined by
106
CMR 704.210(E)(1), the
applicant or client is allowed the work-related-expense deductions from the
rental income in accordance with
106
CMR 704.270, and the TAFDC Earned Income
Disregards for Grant Calculation in accordance with
106
CMR 704.281, if applicable; and
(F)
Roomer and Boarder
Income. When an applicant or client provides a room or room and
board in his or her home or rental unit to a person not included in the
assistance unit, he or she is considered self-employed. The amount received
from the roomer or boarder, less the applicable business expenses provided in
106
CMR 704.210(F)(1), (2), or
(3), is available gross earned income. The
applicant or client may either use the standard or actual business expenses in
the grant calculation. However, if the applicant or client chooses actual
business expenses, he or she must verify that the business expenses exceed the
standard business expense.
(1) The allowed
standard business expenses are:
(a) 25% of
income from roomers; and
(b) 75% of
income from boarders.
(2) The following nonstandard business
expenses are allowed for those who own their own home and can verify that these
business expenses are more than the standard business expenses.
(a) The business expenses include carrying
charges, the cost of fuel and utilities, maintenance and repair costs, the cost
of laundry or cleaning or both, and the cost of meals for boarders:
1. Carrying charges include current taxes
less any abatements, betterment taxes, interest and principal payments on the
mortgage, water bills, and fire insurance premiums. Carrying charges must be
verified and used in grant calculations in monthly amounts;
2. The cost of fuel and utilities provided to
the tenants may be based on actual costs averaged on a yearly basis and used in
grant calculations in monthly amounts or on projected monthly costs. If actual
costs are used, they must be verified. If projected costs are used,
verification shall be by a written statement from the applicant or
client;
3. Maintenance and repair
costs of $20 per month per roomer or boarder may be routinely allowed. If the
applicant or client verifies that the maintenance or repair costs exceed $20
per month per roomer or boarder, the excess amount is allowed;
4. The monthly cost of any laundry and
cleaning provided to the roomer or boarder as part of the room or board
arrangement shall be verified by a written statement from the applicant or
client; and
5. The monthly cost of
meals provided to a boarder shall be verified by a written statement from the
applicant or client.
(b)
The business expenses provided in
106
CMR 704.120(F)(2)(a)1., 2.,
and 3. are prorated in the following manner and deducted to determine the
countable income from a roomer or a boarder.
1. If there is one roomer or boarder,
1/2 the carrying charges are allowed as a business expense; if there are
two roomers or boarders,
2/3 are allowed,
and so forth.
2. The heat and
utility expenses are prorated in the same manner as the carrying
charges.
3. The maintenance and
repair costs are only prorated as provided in
106
CMR 704.120(F)(2)(b)1. if
the applicant or client documents that the costs exceeds the $20 per-month
allowance.
(3) Certain actual business expenses are
allowed for those residing in a rented dwelling who can verify that these
expenses exceed the standard business expense.
(a) Allowable business expenses include the
rental charge, the cost of fuel and/or utilities, if paid separately from the
rental charge, the cost of laundry and/or cleaning, and the cost of meals for
boarders as explained in
106
CMR 704.210(F)(3)(a)1.
through 4.
1. The monthly rental charge for
the rented apartment or home is allowable. The rental charge must be verified
and used in grant calculations in monthly amounts.
2. The costs for fuel and/or utilities are
allowable and must be verified if either or both these costs are the
responsibility of the applicant or client as a separate charge in addition to
the rental charge. The costs may be based on actual costs averaged on a yearly
basis and used in grant calculations in monthly amounts or on projected costs.
If actual costs are used, they must be verified. If projected amounts are used,
verification shall be by a written statement of the projected costs from the
applicant or client.
3. The monthly
cost of laundry or cleaning or both provided to the roomer or boarder as part
of the room or board arrangement is allowable and shall be verified by a
written statement from the applicant or client.
4. The monthly cost of providing meals to a
boarder is allowable and shall be verified by a written statement from the
applicant or client.
(b)
These business expenses shall be prorated in the following manner and deducted
to determine the countable income from a roomer or a boarder.
1. If there is one roomer or boarder,
1/2 the rental charge is allowed as a business expense; if there are two
roomers or boarders,
2/3 is allowed, and
so forth.
2. Heat and utility
expenses, if the applicant or client is responsible these costs, are prorated
in the same manner as the rental charge.
(4) The applicant or client who receives
income from a roomer or boarder is allowed the work-related-expense deduction
in accordance with
106
CMR 704.270 and the TAFDC Earned Income
Disregards for Grant Calculation disregard in accordance with
106
CMR 704.281, if applicable.
