SUBJECT:
INCOME EXPENSE POLICY CLARIFICATION
TEMPORARY ASSISTANCE MANUAL REVISION #1: SECTION 0210.015.20.10, INCOME FROM SELF-EMPLOYMENT; SECTION 0210.015.25, OVERHEAD EXPENSE OF PRODUCING INCOME; SECTION 0210.015.30.25, CHILD/INCAPACITATED PARENT CARE COSTS; AND SECTION 0905.012.60.20, TREATMENT OF SPECIFIC TYPES OF INCOME
DISCUSSION:
This memorandum provides clarification of correct policy and procedures for the following income expenses:
- Overhead Expense of Producing Income;
- Child Care/Incapacitated Parent Costs.
Overhead Expense of Producing Income:
Determine self-employment income by comparing the gross receipts to the business expenses directly related to producing the goods or services; without which the goods or services could not be produced. A list of expenses that are not allowable, such as depreciation, has been added to Section 0210.015.25 Overhead Expense of Producing Income. This revised section is now linked to Section 0210.015.20.10, Income From Self-Employment, and Section 0905.012.60.20, Treatment of Specific Types of Income
Child Care/Incapacitated Parent Costs
When care for a child or incapacitated parent included in the assistance group is necessary because of employment or participation in a training program in which wages are received, include payments for the actual cost of care as an earned income expense. Actual costs include the amount paid to the provider. Do not include the cost of transportation to and from the provider.
NECESSARY ACTION:
- Review this memorandum with appropriate staff.