9065 Calculating Net Income and Benefit Levels [7 CFR 273.10(e)]

To determine a household's net monthly income: A. Add the gross monthly income earned by all household members and the total monthly unearned income of all household members, minus income exclusions, to determine the household's total gross income. Net losses from the self-employment income of a farmer will be offset in accordance with DSSM 9074. B. Multiply the total gross monthly earned income by 20 percent and subtract the amount (or multiply the total gross monthly earned income by 80 percent) and add that to the total monthly unearned income, minus income exclusions. C. Subtract the standard deduction, as specified in DSSM 9060A. D. If the household is entitled to a medical deduction as provided in DSSM 9060 (C ), subtract that portion of the allowable medical costs that exceeds $35. E. Subtract monthly dependent care expenses paid, if any, as specified in DSSM 9060(D). F. Subtract monthly legally obligated child support payments made to children living outside of the household. If the household is entitled to an excess shelter deduction, compute the household's excess shelter deduction in accordance with the next paragraph (G). G. Total the allowable shelter expenses to determine shelter costs. Subtract from total shelter costs 50 percent of the adjusted income (the household's monthly income after all the above deductions have been subtracted). The remaining amount, if any, is the excess shelter cost. If there is no excess shelter cost, the net monthly income has been determined. If there is excess shelter cost, compute the shelter deduction in sub- paragraph (H) of this section. Subtract from the adjusted income in sub-paragraph (F) of this section the excess shelter cost up to the maximum amount allowed unless the household is entitled to the full amount of its excess shelter expenses. Households not subject to the excess shelter deduction limitation will have the full amount exceeding 50 percent of their income after other applicable deductions subtracted. The household's net monthly income has been determined. Individual shelter and, where applicable, medical costs will be totaled and then rounded to the nearest dollar (i.e., $.01- $.49, round down and $.50- $.99 round up) before continuing on with the benefit calculation. The income conversion procedures in DSSM 9064 will also apply to medical and shelter expenses billed on a weekly or bi- weekly basis. In calculating net monthly income, round down each calculation that ends in 1 through 49 cents and round up for calculations that end in 50 through 99 cents. For example, gross weekly wages would be converted to the monthly amount and then rounded to the nearest dollar prior to the computation of the earned income deduction. Cents will be rounded from this calculation before being subtracted from the earned income. 12 DE Reg. 1329 (04/01/09)