1. (1) All earned income is counted when it is received even if it is an advance on wages, salaries or commissions.

2. (2) Countable earned income includes:

   1. (a) wages, except Americorps*Vista living allowances are not counted;
   2. (b) salaries;
   3. (c) commissions;
   4. (d) tips;
   5. (e) sick pay which is paid by the employer;
   6. (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;
   7. (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;

   8. (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;

      1. (i) training incentive payments and work allowances; and
   9. (j) earned income of dependent children, unless the child is participating in required employment or training activities.

3. (3) Income that is not counted as earned income:

   1. (a) income for an SSI recipient;
   2. (b) reimbursements from an employer for any bona fide work expense;
   3. (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
   4. (d) Earned Income Tax Credit (EITC) payments.

KEY: family employment program, SNAP

Date of Last Change: October 24, 2022

Notice of Continuation: August 14, 2025

Authorizing, and Implemented or Interpreted Law: Title 35A, Chapter 3, Part 3; PRWORA Pub. L. No. 104-193