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Chapter: 1800 Income

Program: RAP 28 1860.0209.02 Collateral Contact Verification (RAP) Verification must be obtained regarding the source and amount of income received. When other sources of verification are unavailable, the following information provided by a collateral contact must be recorded:

1. date verification is received, 2. name and title of person providing verification, 3. source of the income or benefit, 4. date(s) received and amount, 5. benefit claim or identification number for each individual receiving a benefit (ex. SSI, SSDI, VA), and 6. the reason the individual is eligible for the benefit if receiving a benefit (ex. SSI, SSDI, VA). 1860.0209.04 Verification of a Child's Wages (RAP) Wages of a child whose total income is excluded under the student disregard policy are also excluded from documentation/verification requirements. The applicant's/recipient's statement regarding the amount of income and number of hours employed may be accepted unless questionable. 1860.0300 SELF-EMPLOYMENT (RAP) An individual who owns a business or otherwise engages in a private enterprise is considered self-employed. Income derived from self-employment is considered earned income.

This includes but is not limited to:

1. babysitting, 2. sales from a franchise company, 3. picking up and selling cans, 4. farm self-employment, and 5. selling newspapers.

Refer to passages 1860.0302 through 1860.0315 to determine net income as well as verification required. 1860.0302 Allowable Costs of Self-Employment Income (RAP) Allowable costs of producing self-employment income include, but are not limited to, the following expenses. The assistance group is required to keep a record of the expenses incurred in the production of self-employment income:

1. identifiable costs of labor (salaries, employer's share of Social Security, insurance, contract labor, commission, etc.); 2. stock, raw materials, seed and fertilizer, and feed for livestock; 3. rent and cost of building maintenance; 4. business telephone costs; 5. costs of operating a motor vehicle when required in connection with the operation of the business; 6. interest paid to purchase income producing property; 7. insurance premiums and property taxes paid on income producing property; 8. costs for feed for work stock; 9. cost of meals and equipment for children for whom child care is provided in the home; and 10. travel and lodging, but not meals, away from home.