If the EU elects to not include the boarder as an EU member, do not consider the income of the boarder available to the EU. The payment amount that the boarder pays to the EU is considered income to the EU.
Treat income received by an EU from a boarder in a non-commercial boarding house as self-employment income. Income from the boarders includes all direct payments to the EU for room and meals, including contributions to the EU for part of the EU�s shelter expenses. Shelter expenses paid directly by the boarders to someone outside the EU are not counted as income to the EU. Such a payment is considered a vendor payment and excluded as income. Enter room and board income as earned income on the Income (FMX0) screen in FAMIS as indicated in Food Stamp Manual Section 1115.005.00 Earned Income. Enter source type RB (room/board).
After determining the income received from the boarders, that portion of the boarder payment that is a cost of doing business is excluded. The cost of doing business is equal to:
If the actual costs are used, enter the cost of providing meals (ML) and cost of business utilities (BU) on the Income Expense (FMX1) screen.
EXAMPLE: Sara is a boarder in the Bee household. Sara pays the Bees $400 for room and board. $400 is entered as income source RB on the Income (FMX0) screen on the Bees� food stamp case. Sara�s room is over the Bees� garage and has separate meters. The Bees provided verification that the expenses for Sara�s room are $75 per month for gas and electricity and $35 per month for water and sewage. Due to health problems, Sara is on a special diet. The Bees provided receipts for special foods purchased for Sara totaling $100 per month. Since the verified expenses for Sara exceed the food stamp allotment for a one person household, $110 is entered as business utility (BU) expense and $100 is entered as meals (ML) expense on the Income Expense (FMX1) screen.
FAMIS includes the net income from self-employment with other earned income when the 20 percent earned income deduction is computed.
Always review the Budget Summary (Food Stamps) screen (FM4A) prior to authorizing a case action. From the Budget Summary screen, press F14=INCSUM to review the Income Summary Detail (FM33) screen to ensure income and overhead expenses you expect to be budgeted are included in the budget. If the income or overhead expense is incorrect, return to the Income Amount (FMX3) or Income Expense (FMX1) screen and correct the income or expense.