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(2) voluntarily receives a substantially reduced amount of total gross monthly earned income; or

(3) refuses to accept employment in which the individual is able to engage. (b) The disallowance of deductions in (a) of this section also applies to earnings received from the employment after the date of termination of, or voluntary reduction of wages from, or, when working part-time, refusal to accept additional work in, that employment. (c) This section applies to calculation of countable income for the purpose of determining both income eligibility under 7 AAC 45.470(b) — (d) and the payment amount under 7 AAC 45.525. (Eff. 8/5/92, Register 123; am 10/1/93, Register 127; am 7/1/97, Register 142; am 1/7/2005, Register 173) Statutory Authority: Authority: AS 47.05.010 AS 47.27.005 AS 47.27.015 7 AAC 45.500. Failure to timely report earnings; denial of deductions. (a) The department will not allow a deduction from earned income under 7 AAC 45.480(b) or 7 AAC 45.485, if a caretaker relative fails, without good cause, to make a timely report of earnings against which the deductions would otherwise be allowable. A denial of a deduction under this section is effective for any month for which the earnings would have been counted if they had been timely reported. (b) For purposes of this section

(1) “good cause” means a circumstance beyond the caretaker relative’s control that prevents the caretaker relative from submitting a timely report; “good cause” includes

(A) a physical or mental illness or incapacity that is severe enough and long enough to prevent timely reporting;

(B) illiteracy; and

(C) failure of the mail to be delivered timely, if the caretaker relative can document the cause of that failure;

(2) “report of earnings” means a report to the department, either orally or in writing, of