Page 77

The following steps are in the required order for income computation.

2. Earned Income

Never reduce total earned income below zero.

a. Compute countable adjusted gross self-employment/farm income. (Total self-employment income minus allowable operational expenses equals countable adjusted gross income.)

b. Add income or subtract any self-employment losses from any other earned income

c. Deduct any Federal and State Earned Income Tax Credit (EITC) from gross income.

d. Evaluate for Infrequent/Irregular Income Exclusion ($30.00 earned income). Refer to IX.B. below.

e. Deduct earned income of blind or disabled student children up to the student earned income exclusion (SEIE) monthly limit but not more than the SEIE yearly limit. Refer to IX.D.3

f. Subtract any remainder of the $20.00 exclusion from earned income.

g. Subtract the $65.00 Earned Income Exclusion. (Does not apply to STEP II in LTC Budgeting) Refer to IX.E. below.

h. Deduct any Impairment-Related Work Expense Exclusion (IRWE) for the Disabled. Refer to IX.G. below.

i. Subtract ½ of the remainder.

j. Deduct Work Expense Exclusion for the Blind if applicable. Refer to IX.F. below.

k. Deduct income used to fulfill an approved plan for achieving self-support (PASS).