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An individual who is self-employed may be eligible for certain business deductions from his or her taxable income when calculating household income. All IRS deductions are allowable for MAGI categories and MED 1. This section, however, does not apply to MA F or RMA. Deductible business expenses must be both ordinary and necessary. An ordinary expense means an expense that is common and accepted for a certain business. A necessary expense is an expense that is helpful and appropriate for a certain business. The full amount of the business expense is deducted if the business makes a profit, and the business expense is both ordinary and necessary. The following are types of business expenses that may be deducted: • Employees’ pay • Retirement and savings plans • Rent expenses • Business interest expense or amount charge for borrowing money for business • Depreciation (for MED 1, 3, and 4 only) • Taxes – certain federal, state, local, and foreign taxes directly attributable to business • Legal and professional fees • Travel, meals, and entertainment • Business use of home • Insurance. 2810.35.00 INCOME RECEIVED FROM TRAINING PROGRAMS When an individual participates in a work or on-the-job training program that involves work for payment, the payment is included as earned income for non-MAGI (MED 1, MED 2, and MED 4) AGs. The income is included in the household income for MAGI (MED 3) AGs if the individual participating in the on-the-job training program is required to file taxes. (Refer to IHCPPM 2810.25.15). Training allowances from vocational and rehabilitative programs recognized by a government agency are also included income, unless excludable as a reimbursement. For example, IMPACT and Job Training Partnership Act (JTPA) program payments or allowances are included income unless provided as a reimbursement or otherwise identified as excluded income in the following sections. Refer to IHCPPM 2855.00 for additional information on reimbursements. 2810.35.05 JTPA INCOME (MED 1, 4) Income received through a JTPA program for on-the-job training is counted as earned income. Reimbursements for supportive services are exempt.