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UPDATED: AUGUST 1999

119

INCOME EARNED

INCOME FROM ROOMERS (LODGERS) AND BOARDERS

For all categories of assistance, if the individual can document that the actual expenses paid in providing room or board are greater then the allowable roomer/boarder disregard, the actual expenses are deducted.

In determining if the actual expenses paid in providing room and/or board exceed the monthly roomer/boarder deduction, the following expenses are deductible:

• property, school, water and sewer taxes; • utilities; • interest payments on mortgages; • cost of essential repairs; • food (if included in rent)

A person providing room/board as part of a business, may deduct allowable business expenses paid the same taxable year to the extent the expenses are attributable to the rented portion of the property.

The allowable expenses incurred in providing room and board are prorated based on the number of rooms designated for rent compared to the number of rooms (other than bathrooms) in the house.

If income received for room or board is less than the allowable expenses of providing room or board, the excess expenses are deducted from the next month’s roomer/boarder income.

When to Verify: (a) When the A/R declares in the application that s/he has income from roomers or boarders;