Page 14

REV. JANUARY 9, 2017 NEBRASKA DEPARTMENT OF CCS PROGRAM MANUAL LETTER #10-2017 HEALTH AND HUMAN SERVICES 392 NAC 3-005.02A

3-005.02A Income Considered for Relatives Who Are Not Legally Responsible: If a non-legally responsible relative is receiving ADC as a relative payee for the child needing child care, the ADC grant is not counted as income in determining financial eligibility. All other income of the relative is considered.

Non-legally responsible relatives who may receive Child Care Subsidy include grandparents, adult brothers and sisters, stepparents, stepbrothers and stepsisters, uncles, aunts, first and second cousins, adult nephews and nieces. These relatives may be half blood, related by adoption, or from a previous generation as denoted by prefixes of grand, great, great-great, or great-great- great. 3-005.02B Averaged Self-Employment Income: The worker determines the gross income, including capital gains, from self-employment for each source of self- employment of the family. The worker then applies a standard deduction of 49% to the gross income for each source of self-employment for which the household reports at least one allowable expense. If the household reports no allowable expense(s) from a source of self-employment income, the worker uses total gross income from that source to calculate CCS eligibility. 3-005.02B1 Allowable self-employment expenses include, but are not limited to, the identifiable costs of labor, stock, raw material, seed and fertilizer, payments on the principal of the purchase price of income-producing real estate and capital assets, equipment, machinery, and other durable goods; interest paid to purchase income-producing property; insurance premiums; taxes paid on income-producing property; and reimbursement from the USDA Child and Adult Care Food Program. 3-005.02B2 Expenses Not Allowed: The following expenses are not allowed as self-employment expenses: 1. Net losses from previous tax years; 2. Federal, state, and local income taxes, money set aside for retirement purposes, and other work-related personal expenses, such as transportation to and from work. 3. Depreciation; and 4. Depletion.