500 Determining Net Income

The net monthly income of destitute (migrant) households is calculated in accordance with the provisions of 106 CMR 365.810: Expedited Service Households. The following steps lead to the determination of net monthly income for all other households. Round down each income and allotment calculation that ends in .01 through .49 cents and round up each calculation that ends in .50 through .99 cents. (A) Total Gross Earned Income. To determine gross monthly earned income, add the gross monthly income earned by all household members (including self-employment income) less income exclusions. Net losses from a self-employed farmer shall be offset in accordance with (B) Earned Income Deduction. Multiply the gross earned income by 80% to determine monthly earned income. (C) Unearned Income. Add the total monthly unearned income of all household members, less income exclusions, to the net monthly earned income. (D) Standard Deduction. Subtract the standard deduction for the household size. See 106 CMR 364.400. (E) Medical Expenses. Total the allowable medical expenses, less reimbursements (for example, by a third-party insurer) for those household members who meet one of the requirements of 106 CMR 361.210: Elderly or Disabled Individuals. If these costs exceed $35 per month, go to the next step. If these costs are $35 or less, go to (F) Medical Deduction. (1) For medical expenses between $35, and $190 per month, subtract $155. (2) For medical expenses that exceed $190 per month, subtract the amount that exceeds $35. (G) Dependent Care Deduction. Subtract the actual monthly dependent care expenses, if any, as provided in 106 CMR 364.400(D) and 364.410. (H) Allowable Child Support Payments. Subtract allowable monthly child support payments. (I) Allowable Homeless Shelter/Utility Deduction. Subtract the allowable homeless shelter/utility deduction, if applicable. (J) Excess Shelter Expense. Total the allowable shelter expenses, unless a homeless shelter deduction was provided. Subtract 50% of the household's preliminary adjusted net income (monthly income after all the above deductions have been subtracted) from the total shelter expenses. The remaining amount, if any, is the excess shelter expense. If there is no excess shelter expense, the household's net monthly income has been determined. If there is excess shelter expense, go to the next step. (K) Shelter Deduction. Subtract the full amount of the excess shelter expense if the household contains an elderly or disabled member who meets one of the requirements of 106 CMR 361.210: Elderly or Disabled Individuals. For all other households, subtract the excess shelter expense up to the maximum deduction amount. This shelter deduction amount is posted at www.mass.gov/dta.