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(5) The Department may elect not to attempt recovery of an overpayment from an individual no longer receiving assistance where the overpayment amount is less than $35. Where the overpay- ment amount owed by an individual no longer receiving assistance is $35 or more, the Department can determine when it is no longer cost-effective to continue overpayment recovery efforts, provided it has made reasonable efforts to recover the overpayment from the individual. Reasonable efforts must include notification of the amount of and reasons for the overpayment and that repayment is required. (6) FI established claims for overpayment of benefits that are thirty-five dollars or greater and are more than ninety days delinquent are referred to the South Carolina Department of Revenue and Taxation and/or the United States Internal Revenue Service for intercept of those claims from tax refunds due persons against whom the claims are established. Clients are given written notification by the Department when delinquent claims are referred for state and/or federal tax intercept. HISTORY: Added by State Register Volume 19, Issue No. 5, eff May 26, 1995. Amended by State Register Volume 21, Issue No. 6, Part 2, eff June 27, 1997; State Register Volume 26, Issue No. 5, Part 2, eff May 24, 2002; State Register Volume 38, Issue No. 5, Doc. No. 4457, eff May 23, 2014. 114–1150. Determination of Benefits. A. Gross Income Limit. Gross monthly countable earned and unearned income of the Family Independence benefit group must not exceed 185 percent of the need standard by family size. The gross income limit is an initial screen of eligibility for assistance. B. Earned Income and Unearned Income. (1) Earned income means gross earned income prior to any deductions for taxes or for any other purposes. Such earned income may be derived from an applicant’s or recipient’s own employment, such as a business enterprise, or farming; or derived from wages or salary received as an employee. It includes earnings over a period of time for which settlement is made at one given time, as in the instance of the sale of farm crops, livestock, or poultry. (2) With reference to commissions, wages, or salary, earned income means the total amount, irrespective of personal expenses, such as income-tax deductions, lunches, and transportation to and from work, and irrespective of expenses of employment which are not personal, such as the cost of tools, materials, special uniforms, or transportation to call on customers. (3) With respect to self-employment income, earned income means the total profit from a business enterprise, farming, etc., resulting from a comparison of the gross receipts with the business expenses (i.e., expenses directly related to producing the goods or services and without which the good or services could not be produced). The profit shall be as determined using Internal Revenue Service methods. (4) With regard to the degree of activity, earned income is income produced as a result of the performance of services by a recipient; in other words, income which the individual earns by his own efforts, including managerial responsibilities, would be properly classified as earned income, such as management of capital investment in real estate. Conversely, in the instance of capital investment wherein the individual carries no specific responsibility, such as where rental properties are in the hands of rental agencies and the check is forwarded to the recipient, the income would not be classified as earned income. (5) Unearned income is any income that does not meet the definitions of earned income above, such as direct child support, social security benefits, interest, dividends and gifts. (6) Unemployment compensation benefits are treated as unearned income in the budgeting process. C. Disregard of Earned Income. For purposes of eligibility and benefit determination, provided the benefit group has passed the gross income limit test in item A above, the Department will disregard from earned income: (1) Fifty percent of the monthly gross countable earned income, of each individual whose needs are included in the budget group, for the first four months in which earned income is countable. This disregard can be received only once in twenty-four months.