550.2 Earned Income

The County Assistance Office (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)

7 CFR § 273.9(c)(19)(ii)

NOTE: If an individual indicates a partnership on the Internal Revenue Service (IRS) “Schedule E, Supplemental Income and Loss” (Form 1040), the CAO will consider partnership income as self-employment (see Section 552.51 for instructions on how to determine income for a partnership member).

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 include, but is not limited to, 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.

7 CFR § 273.9(b)(1)(ii)

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.

7 CFR § 273.9(b)(2)(ii)

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.

Pub. L. 105-220 § 181(a)(2)

NOTE: If the payment meets criteria for an allowable exclusion (see Section 550.510), it will be excluded from the eligibility determination.

NOTE: The CAO must use the fair market value in United States dollars as of the date of cryptocurrency payment was received.

NOTE: Credit card gift cards will be treated as income and verified through the provider of the card if they are provided regularly to the household and can be reasonably anticipated. If attempts to verify with the provider and other sources of information are unsuccessful, the CAO will determine the income amount based on the best available information. Recurring payments will be excluded from the eligibility determination if they meet criteria for an allowable exclusion (see Section 550.5), such as donations to the household from a public or private entity in the form of a credit card gift card.

 

 

Updated March 13, 2026, replacing March 1, 2012