Types of Countable Income

The types of countable income generally are as follows: (A) Earned Income. Earned income is income, in cash or in kind, earned through employment or self-employment. Earned income may be received as wages, salary, tips, commissions, or in kind. For employees, earned income is the total gross amount received. With respect to self-employment, earned income is the total gross income less total business expenses. See 106 CMR 704.210(E) and (F) for an explanation of income from real estate, roomers and boarders, and business expenses; (B) Unearned Income. Unearned income is all income that a person does not earn through employment. Unearned income includes, but is not limited to: (1) Dividends; (2) Interest; (3) Unemployment Compensation payments; (4) Pensions; (5) Social Security (RSDI) benefits; Veterans' benefits, except as provided in 106 CMR 702.720: Veterans' Services Benefits for EAEDC; (7) Contributions, except as provided in 106 CMR 704.120 and 704.250; and (8) Certain income from real estate as provided in 106 CMR 704.210(E); (C) Contribution From a Non-legally Responsible Person(s). Contributions from non-legally responsible persons that meet the entire cost of one or more of the needs below is considered countable income for calculation of the grant amount only and is deducted using the standard values below. RENT OR MORTGAGE Unheated Facility $102.00 Heated Facility 126.30 FUEL 27.90 UTILITIES 18.60 FOOD (Individual) 41.80 (D) Deemed Income. The income, excluding the types of noncountable income provided in 106 CMR 704.250, of the following persons, who live in the same household with the TAFDC assistance unit, is deemed to the filing unit to determine eligibility and the grant amount in accordance with 106 CMR 704.235(A) through (C): (a) stepparents living with the natural or adoptive parent of the dependent child; The income of a stepparent living with the parent of a minor parent as defined in 106 CMR 704.236 is excluded when determining the eligibility of the minor parent unless the TAFDC assistance unit includes the minor parent as a dependent child; (b) parent(s) of minor parents as defined in 106 CMR 704.236; and (c) persons who have a legal obligation of support as defined in 106 CMR 704.330(B)(1) with the exception of the spouse of a pregnant woman as specified in 106 CMR 704.210(D)(2) and (3). The income, excluding the types of non-countable income provided in 106 CMR 704.250, of the spouse of the EAEDC applicant or client, who lives in the same household with the EAEDC applicant or client, is deemed to the filing unit to determine eligibility and the grant amount in accordance with 106 CMR 704.335. (Note: formerly found at 106 CMR 204.210(D)(2)). The income, excluding the types of noncountable income provided in 106 CMR 704.250, of the spouse of the otherwise eligible TAFDC pregnant woman, who lives in the same household, are deemed to the filing unit to determine eligibility in accordance with 106 CMR 704.235. (E) Real Estate Income. (1) When an applicant or client receives income from rental or commercial property, he or she is considered self-employed. This income can be earned or unearned. The income is unearned if the property is managed by a rental agency for the applicant or client who has no responsibility for the income-producing property. This unearned income, less business expenses only, is considered to determine eligibility and the grant amount. The income is earned if the client collects rents and provides services to maintain the property. Deductions from earned real estate income are allowed as provided in 106 CMR 704.210(E)(2) through (6). Business expenses include carrying charges, the cost of fuel and utilities provided to tenants, maintenance and repair costs. (a) Carrying Charges. Carrying charges consist of current taxes less any abatements, betterment taxes, interest and principal payments on the mortgage, water bills, and fire insurance premiums. Carrying charges must be used in grant calculations as monthly amounts and verified. (b) Fuel and Utilities. The cost of fuel and utilities provided to tenants is based on either actual costs averaged on a yearly basis and used in grant calculations as a monthly amount or on projected monthly costs. If actual costs are used, they must be verified. If projected amounts are used, verification shall be by a written statement of the projected costs from the applicant or client. (c) Maintenance and Repair Costs. Maintenance and repair costs of $20 per month per rented unit may be routinely allowed as a business expense. If the client verifies that maintenance or repair costs exceed $20 per month per rented unit, the excess amount is allowed in calculating the amount of available income. (3) If the applicant or client lives in an apartment in the same house from which he or she receives rental income, the business expenses are partially deducted to determine rental income in the following ways: (a) For a two-family house, ½ of the carrying charges will be allowed as a business expense, for a three-family house, b will be allowed, and so forth; and (b) When the applicant or client provides his or her own heat and/or utilities and that of the tenants from a single heating unit/meter, the expenses are prorated as in 106 CMR 704.210(E)(3)(a). (4) If the applicant or client lives in an apartment in the same house from which he or she receives rental income and provides heat to the tenants from separate heating units or utilities from separate meters, these expenses are fully deducted to determine rental income. (5) If the applicant or client receives rental income from property in which he or she does not live in, the business expenses are fully deducted from the total rental income. If the rental income is earned income as defined by 106 CMR 704.210(E)(1), the applicant or client is allowed the work-related-expense deductions from the rental income in accordance with 106 CMR 704.270, and the TAFDC Earned Income Disregards for Grant Calculation in accordance with 106 CMR 704.281, if applicable; and (a) stepparents living with the natural or adoptive parent of the dependent child; The income of a stepparent living with the parent of a minor parent as defined in 106 CMR 704.236 is excluded when determining the eligibility of the minor parent unless the TAFDC assistance unit includes the minor parent as a dependent child; (b) parent(s) of minor parents as defined in 106 CMR 704.236; and (c) persons who have a legal obligation of support as defined in 106 CMR 704.330(B)(l) with the exception of the spouse of a pregnant woman as specified in 106 CMR 704.210(D)(2) and (3). The income, excluding the types of non-countable income provided in 106 CMR 704.250, of the spouse of the EAEDC applicant or client, who lives in the same household with the EAEDC applicant or client, is deemed to the filing unit to determine eligibility and the grant amount in accordancewith 106CMR 704.335. (Note: formerlyfoundat 106CMR 204.210(D)(2)). The income, excluding the types of noncountable income provided in 106 CMR 704.250, of the spouse of the otherwise eligible TAFDC pregnant woman, who lives in the same household, are deemed to the filing unit to determine eligibility in accordance with 106 CMR 704.235. (E) Real Estate Income. ( 1) When an applicant or client receives income from rental or commercial property, he or she is considered self-employed. This income can be earned or unearned. The income is unearned if the property is managed by a rental agency for the applicant or client who has no responsibility for the income-producing property. This unearned income, less business expenses only, is considered to determine eligibility and the grant amount. The income is earned if the client collects rents and provides services to maintain the property. Deductions from earned real estate income are allowed as provided in 106 CMR 704.210(E)(2) through (6). (2) Business expenses include carrying charges, the cost of fuel and utilities provided to tenants, maintenance and repair costs. (a) Carrying Charges. Carrying charges consist of current taxes less any abatements, betterment taxes, interest and principal payments on the mortgage, water bills, and fire insurance premiums. Carrying charges must be used in grant calculations as monthly amounts and verified. (b) Fuel and Utilities. The cost of fuel and utilities provided to tenants is based on either actual costs averaged on a yearly basis and used in grant calculations as a monthly amount or on projected monthly costs. If actual costs are used, they must be verified. If projected amounts are used, verification shall be by a written statement of the projected costs from the applicant or client. (c) Maintenance and Repair Costs. Maintenance and repair costs of $20 per month per rented unit may be routinely allowed as a business expense. If the client verifies that maintenance or repair costs exceed $20 per month per rented unit, the excess amount is allowed in calculating the amount of available income. (3) If the applicant or client lives in an apartment in the same house from which he or she receives rental income, the business expenses are partially deducted to determine rental income in the following ways: (a) For a two-family house, ½ of the carrying charges will be allowed as a business expense, for a three-family house, 213 will be allowed, and so forth; and (b) When the applicant or client provides his or her own heat and/or utilities and that of the tenants from a single heating unit/meter, the expenses are prorated as in 106 CMR 704.21 0(E)(3)(a). (4) If the applicant or client lives in an apartment in the same house from which he or she receives rental income and provides heat to the tenants from separate heating units or utilities from separate meters, these expenses are fully deducted to determine rental income. (5) If the applicant or client receives rental income from property in which he or she does not live in, the business expenses are fully deducted from the total rental income. (6) If the rental income is earned income as defined by 106 CMR 704.210(E)(l), the applicant or client is allowed the work-related-expense deductions from the rental income in accordance with 106 CMR 704.270, and the TAFDC Earned Income Disregards for Grant Calculation in accordance with 106 CMR 704.281, if applicable; and (F) Roomer and Boarder Income. When an applicant or client provides a room or room and board in his or her home or rental unit to a person not included in the assistance unit, he or she is considered self-employed. The amount received from the roomer or boarder, less the applicable business expenses provided in 106 CMR 704.210(F)(1), (2), or (3), is available gross earned income. The applicant or client may either use the standard or actual business expenses in the grant calculation. However, if the applicant or client chooses actual business expenses, he or she must verify that the business expenses exceed the standard business expense. (1) The allowed standard business expenses are: (a) 25% of income from roomers; and (b) 75% of income from boarders. (2) The following nonstandard business expenses are allowed for those who own their own home and can verify that these business expenses are more than the standard business expenses. (a) The business expenses include carrying charges, the cost of fuel and utilities, maintenance and repair costs, the cost of laundry or cleaning or both, and the cost of meals for boarders: 1. Carrying charges include current taxes less any abatements, betterment taxes, interest and principal payments on the mortgage, water bills, and fire insurance premiums. Carrying charges must be verified and used in grant calculations in monthly amounts; 2. The cost of fuel and utilities provided to the tenants may be based on actual costs averaged on a yearly basis and used in grant calculations in monthly amounts or on projected monthly costs. If actual costs are used, they must be verified. If projected costs are used, verification shall be by a written statement from the applicant or client; 3. Maintenance and repair costs of $20 per month per roomer or boarder may be routinely allowed. If the applicant or client verifies that the maintenance or repair costs exceed $20 per month per roomer or boarder, the excess amount is allowed; 4. The monthly cost of any laundry and cleaning provided to the roomer or boarder as part of the room or board arrangement shall be verified by a written statement from the applicant or client; and 5. The monthly cost of meals provided to a boarder shall be verified by a written statement from the applicant or client. (b) The business expenses provided in 106 CMR 704.120(F)(2)(a)1., 2., and 3. are prorated in the following manner and deducted to determine the countable income from a roomer or a boarder. 1. If there is one roomer or boarder, ½ the carrying charges are allowed as a business expense; if there are two roomers or boarders, b are allowed, and so forth. 2. The heat and utility expenses are prorated in the same manner as the carrying charges. 3. The maintenance and repair costs are only prorated as provided in 106 CMR 704.120(F)(2)(b)1. if the applicant or client documents that the costs exceeds the $20 per-month allowance. (3) Certain actual business expenses are allowed for those residing in a rented dwelling who can verify that these expenses exceed the standard business expense. (a) Allowable business expenses include the rental charge, the cost of fuel and/or utilities, if paid separately from the rental charge, the cost of laundry and/or cleaning, and the cost of meals for boarders as explained in 106 CMR 704.210(F)(3)(a)1. through 4. 1. The monthly rental charge for the rented apartment or home is allowable. The rental charge must be verified and used in grant calculations in monthly amounts. 2. The costs for fuel and/or utilities are allowable and must be verified if either or both these costs are the responsibility of the applicant or client as a separate charge in addition to the rental charge. The costs may be based on actual costs averaged on a yearly basis and used in grant calculations in monthly amounts or on projected costs. If actual costs are used, they must be verified. If projected amounts are used, verification shall be by a written statement of the projected costs from the applicant or client. 3. The monthly cost of laundry or cleaning or both provided to the roomer or boarder as part of the room or board arrangement is allowable and shall be verified by a written statement from the applicant or client. (F) Roomer and Boarder Income. When an applicant or client provides a room or room and board in his or her home or rental unit to a person not included in the assistance unit, he or she is considered self-employed. The amount received from the roomer or boarder, less the applicable business expenses provided in 106 CMR 704.210(F)(l), (2), or (3), is available gross earned income. The applicant or client may either use the standard or actual business expenses in the grant calculation. However, if the applicant or client chooses actual business expenses, he or she must verify that the business expenses exceed the standard business expense. (1) The allowed standard business expenses are: (a) 25% of income from roomers; and (b) 75% of income from boarders. (2) The following nonstandard business expenses are allowed for those who own their own home and can verify that these business expenses are more than the standard business expenses. (a) The business expenses include carrying charges, the cost of fuel and utilities, maintenance and repair costs, the cost of laundry or cleaning or both, and the cost of meals for boarders: 1. Carrying charges include current taxes less any abatements, betterment taxes, interest and principal payments on the mortgage, water bills, and fire insurance premiums. Carrying charges must be verified and used in grant calculations in monthly amounts; 2. The cost of fuel and utilities provided to the tenants may be based on actual costs averaged on a yearly basis and used in grant calculations in monthly amounts or on projected monthly costs. If actual costs are used, they must be verified. If projected costs are used, verification shall be by a written statement from the applicant or client; 3. Maintenance and repair costs of $20 per month per roomer or boarder may be routinely allowed. If the applicant or client verifies that the maintenance or repair costs exceed $20 per month per roomer or boarder, the excess amount is allowed; 4. The monthly cost of any laundry and cleaning provided to the roomer or boarder as part of the room or board arrangement shall be verified by a written statement from the applicant or client; and 5. The monthly cost of meals provided to a boarder shall be verified by a written statement from the applicant or client. (b) The business expenses provided in 106 CMR 704.120(F)(2)(a)l., 2., and 3. are prorated in the following manner and deducted to determine the countable income from a roomer or a boarder. 1. If there is one roomer or boarder, ½ the carrying charges are allowed as a business expense; if there are two roomers or boarders, 213 are allowed, and so forth. 2. The heat and utility expenses are prorated in the same manner as the carrying charges. 3. The maintenance and repair costs are only prorated as provided in 106 CMR 704.120(F)(2)(b) 1. if the applicant or client documents that the costs exceeds the $20 per-month allowance. (3) Certain actual business expenses are allowed for those residing in a rented dwelling who can verify that these expenses exceed the standard business expense. (a) Allowable business expenses include the rental charge, the cost of fuel and/or utilities, if paid separately from the rental charge, the cost of laundry and/or cleaning, and the cost of meals for boarders as explained in 106 CMR 704.210(F)(3)(a) 1. through 4. 1. The monthly rental charge for the rented apartment or home is allowable. The rental charge must be verified and used in grant calculations in monthly amounts. 2. The costs for fuel and/or utilities are allowable and must be verified if either or both these costs are the responsibility of the applicant or client as a separate charge in addition to the rental charge. The costs may be based on actual costs averaged on a yearly basis and used in grant calculations in monthly amounts or on projected costs. If actual costs are used, they must be verified. If projected amounts are used, verification shall be by a written statement of the projected costs from the applicant or client. 3. The monthly cost of laundry or cleaning or both provided to the roomer or boarder as part of the room or board arrangement is allowable and shall be verified by a written statement from the applicant or client. 4. The monthly cost of providing meals to a boarder is allowable and shall be verified by a written statement from the applicant or client. (b) These business expenses shall be prorated in the following manner and deducted to determine the countable income from a roomer or a boarder. 1. If there is one roomer or boarder, ½ the rental charge is allowed as a business expense; if there are two roomers or boarders, b is allowed, and so forth. 2. Heat and utility expenses, if the applicant or client is responsible these costs, are prorated in the same manner as the rental charge. (4) The applicant or client who receives income from a roomer or boarder is allowed the work-related-expense deduction in accordance with 106 CMR 704.270 and the TAFDC Earned Income Disregards for Grant Calculation disregard in accordance with 106 CMR 704.281, if applicable.