Current through Register Vol. 35, No. 18, September 24, 2024
A.
Earned income:
Earned income consists of the following types of
payments:
(1) wages counted at the
earliest of: when received, when credited to the person employed, or when set
aside for the employee's use;
(2)
net earnings from self-employment counted on a taxable year basis; net losses,
if any, are deducted from other earned income, but not from unearned
income;
(3) payments for services
performed in a sheltered workshop or work activities center counted when
received or set aside for the employee's use;
(4) royalties earned by an individual in
connection with any publication of their work and any honoraria received for
services rendered; and
(5) in-kind
earned income is counted based on current market value. If the applicant/
spouse receives an item that is not fully paid for and they are responsible for
the balance, only the paid up value is income to the applicant.
B. Period under consideration: The
period for which earned income is counted is, in 2006, the remainder of the
calendar year, starting with the month of application for the subsidy. Adjust
prospective earned income based on the number of months remaining in the
calendar year. The income standard against which the income is measured should
be adjusted to reflect the same number of months. For subsidy applications
filed in 2005, eligibility cannot begin prior to January 1, 2006.
C. Earned income exclusions: Earned income
exclusions apply in the order listed below:
(1) refund of federal income taxes and
payments under the earned income tax credit;
(2) the first $30 of earned income per
calendar quarter that is received too irregularly or infrequently to be counted
as income;
(3) any portion of the
$20 per month exclusion that has not been excluded from combined unearned
income;
(4) $65 per month of the
applicant/spouse's earned income;
(5) for applicants who are under age 65 and
receive a social security disability insurance benefit based on disability,
sixteen and three-tenths percent of gross earnings for impairment related work
expenses (IRWE);
(6) one half of
the applicant/spouse's remaining earned income; and
(7) for applicants who are under age 65 and
receive a social security disability insurance benefit that is based on
blindness, twenty-five percent of gross earnings for blind work expenses
(BWE).
