75-02-01.3-07 Treatment of income.

1. A child care assistance unit's earned income from wages or any other source must be considered received in the month it is normally received or available. 2. A child care assistance unit's earned income from self-employment is computed: a. From information in the following order of priority by: (1) Using a federal income tax return and must be prorated over a twelve-month period that coincides with either a calendar year or the fiscal year used on the child care assistance unit member's federal tax return; (2) Annualizing the income for the period of time the business has been in operation; (3) Using income and costs of good ledgers; or (4) Estimating the effect on the annual income based on the best information available from the child care assistance unit. b. By considering the type of business activity, expenses, and income. 3. Depreciation and other costs of doing business associated with a child care assistance unit's self-employment that do not require outlays during the period covered by the tax return must be added to the net income. 4. A child care assistance unit's earned income that is received on a contractual basis must be prorated over the period of the contract, regardless of when it is actually received. 5. Expenses necessarily incurred to maintain the source of the child care assistance unit's unearned income may be deducted to determine countable unearned income. All countable unearned income must be considered received in the month in which it is normally received or normally available. 4 History: Effective April 1, 2010; amended effective April 1, 2014. General Authority: NDCC 50-33-02 Law Implemented: NDCC 50-33-02