R986-200-236. Earned Income

(1) All earned income is counted when it is received even if it is an advance on wages, salaries or commissions. (2) Countable earned income includes: (a) wages, except Americorps*Vista living allowances are not counted; (b) salaries; (c) commissions; (d) tips; (e) sick pay which is paid by the employer; (f) temporary disability insurance or temporary workers' compensation payments which are employer funded and made to an individual who remains employed during recuperation from a temporary illness or injury pending the employee's return to the job; (g) rental income only if managerial duties are performed by the owner to receive the income. The number of hours spent performing those duties is not a factor. If the property is managed by someone other than the individual, the income is counted as unearned income; (h) net income from self-employment less allowable expenses, including income over a period of time for which settlement is made at one given time. The periodic payment is annualized prospectively. Examples include the sale of farm crops, livestock, and poultry. A client may deduct actual, allowable expenses, or may opt to deduct 40% of the gross income from self-employment to determine net income; (i) training incentive payments and work allowances; and (j) earned income of dependent children, unless the child is participating in required employment or training activities. (3) Income that is not counted as earned income: (a) income for an SSI recipient; (b) reimbursements from an employer for any bona fide work expense; (c) allowances from an employer for travel and training if the allowance is directly related to the travel or training and identifiable and separate from other countable income; or (d) Earned Income Tax Credit (EITC) payments.