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MS 5315

[1]

Volume 2 - Supplemental Nutrition Assistance Program (SNAP)

MS 5315 – R. 8/1/10 – OMTL - 368 Boarders

The income from a boarder includes all direct payments to the household for room and meals, including contributions to the household's shelter expenses. Shelter expenses paid directly by a boarder to someone outside the household are not counted as income to the household.

If the household operates a commercial boarding house, exclude the household's actual allowable cost of doing business. If the household does not operate a commercial boarding house, exclude that portion of the boarder payment that is the cost of doing business. The cost of doing business is equal to either of the following procedures, provided the amount allowed as the cost of doing business does not exceed the payment the household receives from the boarder for lodging and meals:

A. The full value of the Thrifty Food Plan (maximum allotment) for a household size that is equal to the number of boarders; or

B. The actual documented cost of providing room and meals if the actual cost exceeds the appropriate Thrifty Food Plan (maximum allotment). If actual costs are used, only separate and identifiable costs of providing room and meals to boarders are excluded.

Add the net income from self-employment to other earned income and apply the earned income deduction to the total. Shelter costs the household actually incurs, even if the boarder contributes to the household for part of the household's shelter expenses, are computed to determine if the household will receive a shelter deduction. However, any shelter expenses paid directly by the boarder to a third party, such as the landlord or utility company, are excluded as vendor payments and are not allowed as a deductible expense.