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EARNED INCOME

EXAMPLES OF INCOME AND TREATMENT IN BUDGET COMPUTATION

INCOME TYPE TREATMENT Earnings of a child age 18 or younger and not in school Counted as earned income Unearned income of a parent in the home but not in the unit Counted in full Earned income of a parent in the home but not in the unit Earned income disregards are allowed for a parent who is sanctioned because of noncooperation with Third Party Liability (TPL) or child support, an ineligible alien, drug felon, parole violator, fugitive felon, or a parent convicted of participation in more than one state. For all other situations, full income is counted with no disregard. Income from land contracts Counted as unearned income Sale of home produce, livestock, poultry Counted as earned income Income from boarders, rented rooms, and apartments Counted as earned income from self- employment Rental income from real property Counted as earned income from self- employment On-the-job payments made to adults by an employer Counted as earned income Income from life estate in real property Counted as unearned income Interest on Series E savings bonds and other bonds which accrue interest Lump-sum Picket pay or strike pay Counted as earned income Graduate assistantship Counted as earned income Christmas bonus/work-related bonus Lump-sum Income from the sale of blood or plasma Counted as earned income from self- employment Living allowances issued to Job Corps recipients or the readjustment allowance that is issued when Job Corps participants leave the program Counted as earned income