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Chapter: 1800 Income

Program: RAP 29 1860.0303 Costs Not Allowed (RAP) The following expenses will not be allowed as a cost of producing self-employment income:

1. payments on the principal of the purchase price of income producing real estate and capital assets, equipment, machinery and other durable goods; 2. net losses from previous periods; 3. federal, state and local income taxes, money set aside for retirement purposes and other work- related personal expenses (such as transportation to and from work), as these expenses are accounted for by the 20% earned income adjustment and earned income disregards; 4. depreciation; and 5. child care costs (not an allowable expense if he/she is a child care provider, such as babysitters/licensed providers, even if he/she pays someone else for care).

Note: Business equipment and supplies are considered assets for TCA, CIC, RAP and MFAM. Business equipment and supplies are excluded as assets in FS. 1860.0306 Earned Income from Farming (RAP) Farming is any activity involving raising crops, livestock, and poultry to sell for profit rather than solely for family consumption. Profits from farming are gross income.

Farming individuals must provide their most recent income tax return to the eligibility specialist. If there is no tax return, the individual must provide bills and receipts or any other records of sales and expenses. The eligibility specialist may consult with the County Agricultural Agent to determine the accuracy of the income and expenses and whether any money from a subsidy, loan, or Government Farm Program has been received. 1860.0307 Allowable Costs (RAP) Recognized operating costs include:

1. seed, 2. feed, 3. fertilizer, 4. supplies, 5. labor, 6. fuel, 7. pesticides, and 8. machinery rentals.

Depreciation costs are not recognized. Operating costs for the farmer do not include:

1. child care, 2. Social Security, or 3. income tax.

Livestock, farm equipment, and property are considered assets. 1860.0308 Child Care in Own Home (RAP) Individuals providing child care in their own home are self-employed. The amount anticipated to be received in the month will be used in the benefit calculation.

There is a deduction of $1.00 per child per day for care of children in the individual's own home. However, the $1.00 per day deduction cannot be allowed when the child for whom care is provided is a resident of the same dwelling unit as the individual providing care.