550.2 Earned Income

The CAO must use the gross amount of earned income with no deductions for taxes.  Earned income includes the following:  

 7 CFR § 273.9(b)(1)

NOTE:  The CAO must discuss with the household and narrate in the case record, the basis for the best estimate of tip income. Tip amounts reported on pay stubs should not be used as income unless the household indicates the amount reflects actual tips received.

 7 CFR § 273.9(c)(10)(iii)

NOTE:  Earned Income from temporary census jobs beginning December 1, 2009, was excluded as a demonstration project for the 2010 Census.  If the CAO discovers that any income after December 1, 2009 for the 2010 Census was counted, the CAO must restore benefits. See Chapter 581.

NOTE:  Profit from owning rental property is earned income only if a household member actively manages the property  an average of at least 20 hours per week. Active management may, but is not limited to, include collecting rental income, paying utilities/mortgage, general maintenance and upkeep. If the rental unit is in or on the property where the household lives, then there must be a clear difference between the management of the resident property and the rental property.

Reminder:  Self-employment costs may be deducted from gross rental income even if the property is actively managed less than 20 hours per week.   The profit is then used as unearned income.

NOTE:  The CAO must explore the situation with the household to determine if the households are actually sharing expenses or if a roomer situation exists.

 

 

 

Reissued March 1, 2012 , replacing December 16, 2008