0805.015.20 DETERMINATION OF GROSS EARNED INCOME
Gross earned income is the total amount of all non-excluded earned income, minus any allowable overhead expenses for income producing property.
0805.015.25 STANDARD DEDUCTIONS FROM GROSS EARNED INCOME
Determine the total adjusted earned income by deducting the following amounts, as applicable, from the claimant's (and spouse's, if married and living together) gross earned income:
- Earned Income Exemption: The first $65.00 of the claimant's (and spouse's, if married and living together) earned income, plus 1/2 of the remainder.
- AB and/or Student Exemption:
- AB work expenses -- If the claimant is approved for MA under AB eligibility requirements, subtract work expenses from the earned income on an “as paid” basis. Disregard only ordinary and necessary expenses reasonably related to the earning of income. These expenses fall into three broad categories:
- Getting to and from work;
- Performing on the job; and/or
- Qualifying for promotion to a better paying or next higher job.
EXAMPLE: Bus or taxi fare, seeing eye dog and his upkeep.
These expenses must be paid by the claimant and must be job related in order to be allowed.
- Student exemptions -- If the claimant is: under age 22, a student; approved for MA under AB or PTD eligibility requirements, subtract educational expenses from the claimant's earned income on an “as paid” basis.
Educational expenses include:
- Tuition and fees;
- Room and Board; and
- Other expenses as determined by the educational institution to be related to student needs.
The gross earned income figure minus the allowable deductions shown above, equals the adjusted earned income.