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Note: Tax returns outside of 12 months from application or recertification date should not be used as current income. If current tax records are unavailable, current business records (income/expense for the last year) should be requested.

Examples:

o Steve, who is on HIP, is the sole owner of his own business and takes in $1,500 a month from the business. His monthly self-employment expenses are $2000 so he is not making a net profit and is losing $500 per month. He also earns $1000 a month from wages from a separate job. The loss is used to offset wages thus the total countable income is $500. o Steve, who is on MA D, is the sole owner of his own business and takes in $1,500 a month from the business. His monthly self-employment expenses are $2000 so he is not making a net profit and is losing $500.00 per month. He also earns $1000 a month from wages from a separate job. The loss is counted as $0 thus the total countable income for MED 1 budgeting is $1000. o John, who is on HIP, is the sole owner of his own business and takes in $500 a month from the business. He is not making a net profit and is losing $1,000 per month. His total countable income is $0. o Mary, who is receiving MA D, is the sole owner of her own business, is married. Her spouse receives $900 per month for his Social Security Disability. Courtney age 5, and Mary’s self-employment expenses exceed her self-employment income thus she is losing $200 per month. The total countable income for MED 1 budgeting is $900 because negative income (business loss) cannot be subtracted from spouse’s non-taxable income Whereas Mary receives $0 income; her spouse receives $900. o Mary, who is receiving HIP, is the sole owner of her own business, is married. Her spouse receives $900 per month for his Social Security Disability and earns $300 per month from a part-time job. Mary’s self-employment expenses exceed her self-employment income thus she is losing $200 per month. The total countable income for MED 3 budgeting is $1000 because negative income (business loss) can be subtracted from spouse’s taxable income. Mary receives $0 income; her spouse receives $1000. If it appears the budget is not calculating this correctly, send the case into the Help Desk/PAL for review. 3415.00.00 BUDGETING ROOMER AND BOARDER INCOME (MED 1, 4) The policy stated in this section does not apply to MA R.