Net earned income or profit from a business is computed by subtracting business expenses from gross business income. Business expenses include the cost of merchandise and building or equipment rental, but do not include depreciation or the purchase of equipment or property. Income tax, lunches, transportation to and from work, and social security tax, are not considered business expenses but are covered under the standard set for earned income deductions. The earned income exemption for eligible applicants or recipients specified in § 67:12:05:14 is applied to the net income after the standard earned income deduction specified in § 67:12:05:18 and the dependent care disregard specified in § 67:12:05:21.

Source: SL 1975, ch 16, § 1; 1 SDR 53, effective January 22, 1975; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 82, effective January 13, 1982; 9 SDR 24, effective September 2, 1982 ; 52 SDR 55, effective December 2, 2025 .

General Authority: SDCL 28- 6-1 .

Law Implemented: SDCL 28- 6-1 .

Prior versions effective: 1982-09-02.