In calculating a household's income for the purpose of determining eligibility for food stamps, income shall mean all income, earned and unearned, from whatever source, except for items specifically excluded in this subdivision.

(1) Earned income shall include:

(i) all wages and salaries of an employee;

(ii) the gross income from a self-employment enterprise, including the total gain from the sale of any capital goods or equipment related to the business, excluding the costs of doing business as described in this Part. Ownership of rental property shall be considered a self-employment enterprise; however, income derived from the rental property shall be considered earned income only if a member of the household is actively engaged in the management of the property at least an average of 20 hours a week. Payments from a roomer or boarder shall also be considered self-employment income;

(iii) training allowances from vocational and rehabilitative programs recognized by Federal, State or local governments, to the extent they are not a reimbursement;

(iv) payments under Volunteers in Service to America (VISTA) are considered earned income and subject to the earned income deduction. However, such calculation must exclude payments made to those households which are specified in section 387.11 of this Part; and

(v) earnings to individuals who are participating in on-the-job training programs under section 204(5), title II, of the Job Training Partnership Act. This provision does not apply to earnings received by household members under 19 years of age who are under the parental control of another adult household member, regardless of school attendance and/or enrollment as set forth in section 387.11(j) of this Part.

(2) Earned income does not include:

(i) income excluded by section 387.11 of this Part; or

(ii) any portion of income earned under a work supplementation or support program that is attributable to public assistance.

(3) Unearned income shall include, but not be limited to:

(i) assistance payments from Federal or federally aided public assistance programs, such as Supplemental Security Income (SSI), Aid to Families with Dependent Children (AFDC), or other assistance programs based on need except as provided for in this Part. Also included are payments made pursuant to the Home Relief (HR) program. Assistance payments derived from programs which require, as a condition of eligibility, the actual performance of work without compensation other than the assistance payments, will be considered unearned income;

(ii) annuities, pensions, retirement, veterans' or disability benefits, workers' or unemployment compensation, old-age, survivor's or social security benefits, strike benefits, foster care payments for children or adults, adoption subsidies, and gross income minus the cost of doing business derived from rental property in which a household member is not actively engaged in the management of the property for at least 20 hours a week;

(iii) support or alimony payments made directly to the household from nonhousehold members;

(iv) scholarships, educational grants, fellowships, deferred payment loans for education, veterans' educational benefits less allowable exclusions which are used for or made available by the educational institution for certain expenses as specified in section 387.11 of this Part;

(v) payments from government-sponsored programs unless otherwise excluded;

(vi) dividends, interest, royalties, and all other direct money payments from any source which can be construed to be a gain or benefit; and

(vii) monies which are withdrawn or dividends which are or could be received by a household from trust funds considered to be excludable resources as specified in section 387.9 of this Part. Such trust withdrawals shall be considered income in the month received, unless otherwise exempt under the provisions of this section. Dividends which the household has the option of either receiving as income or reinvesting in the trust are to be considered as income in the month they become available to the household unless otherwise exempt under the provisions of this Part.

(4) The earned and unearned income of an individual disqualified for an intentional program violation or for failing to comply with a food stamp work registration requirement or a food stamp work requirement as provided in section 385.3 of this Title, must be counted in its entirety as available to the remaining household members. The income of individuals excluded for failing to apply for or provide a social security number or for being an ineligible alien will continue to be counted as income less a pro rata share for the excluded individual. The procedures for calculating this pro rata share are set forth in section 387.16(c) of this Part.

(5) If the benefits of a household are reduced under a Federal, State or local law relating to a means-tested public assistance program for the failure of a member of the household to perform an action required under the law or program, the household may not receive an increased food stamp allotment as a result of a decrease in the income of the household for the duration of the reduction to the extent that the decrease is the result of the reduction.

(6) Unless otherwise exempt, for households containing an alien sponsored after February 1, 1983 for whom a sponsor signed an affidavit of support or a similar statement as a condition of the alien's entry into the United States as a lawful permanent resident, portions of the gross income and the resources of a sponsor and the sponsor's spouse shall be deemed unearned income and resources of a sponsored alien for three years following the alien's admission for permanent residence to the United States. Money paid to the alien by the sponsor or sponsor's spouse would not be considered income to the alien unless the amount paid exceeds the amount deemed available. The amount paid that exceeds the amount attributed would be considered income to the alien in addition to the amount attributed to the alien. Aliens exempt from the provisions of this paragraph are:

(i) an alien participating in the food stamp program as a member of his or her sponsor's household;

(ii) aliens who are sponsored by an organization or group;

(iii) aliens who were not required by the United States Department of Immigration to have a sponsor as a condition of the alien's entry or admission into the United States as a permanent resident under the Immigration and Nationality Act. Such an alien(s) includes but is not limited to, a refugee, a parolee, an individual granted asylum, and a Cuban or Haitian entrant; and

(iv) aliens whose sponsor is participating in the food stamp program in a household that does not include the alien.