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Vermont Department for Children and Families Reach Up Eligibility Rules Economic Services Division 2200 70

2251.1 Earned Income Computation Methods (08/01/2024, 23-28)

a. Gross earned income must be verified pursuant to rule 2208.3.

b. To determine Reach Up eligibility, all income figures are converted to monthly figures, using a multiplier of 4.3 weeks for income received weekly and a multiplier of 2.15 weeks for income received biweekly. c. Computation of net earned income for each member of the Reach Up household, whose total earned income is not otherwise excluded, takes into consideration applicable deductions in the sequences listed below: 1. The unsubsidized earned income deduction sequence is:

i. Business expenses that are deducted from total self-employment business receipts to establish adjusted gross earned income;

ii. Earned income disregard (rule 2252.3); and

iii. Dependent care expenses allowed as a deduction from earned income (rule 2252.2).

2. The subsidized earned income deduction sequence is:

i. Employment expenses (rule 2252.1); and

ii. Dependent care expenses allowed as a deduction from earned income.

3. The subsidized plus unsubsidized earned income deduction sequence is:

i. If a household member has earnings from both subsidized and unsubsidized employment, the computation follows the sequence in subsection (1) above;

ii. Only the earned income disregard is allowed; and

iii. If less than $90 is deducted from unsubsidized earnings, however, the remainder of the $90 will be deducted from any subsidized earnings.

d. Whenever the sum of these deductions exceeds the gross earned income of the household member, the maximum allowable deduction is the amount of the gross earned income.

e. Child care provided as a support service to Reach Up households does not constitute dependent care expenses and is not an allowable deduction.

2251.2 Business Expenses (08/01/2024, 23-28)

a. Business expenses that are deducted from gross self-employment income to determine adjusted gross earned income, are limited to operating costs necessary to produce earned income and include:

Page 71

Official source

Vermont Department for Children and Families Reach Up Eligibility Rules Economic Services Division 2200 70

2251.1 Earned Income Computation Methods (08/01/2024, 23-28)

a. Gross earned income must be verified pursuant to rule 2208.3.

i. Business expenses that are deducted from total self-employment business receipts to establish adjusted gross earned income;

ii. Earned income disregard (rule 2252.3); and

iii. Dependent care expenses allowed as a deduction from earned income (rule 2252.2).

2. The subsidized earned income deduction sequence is:

i. Employment expenses (rule 2252.1); and

ii. Dependent care expenses allowed as a deduction from earned income.

3. The subsidized plus unsubsidized earned income deduction sequence is:

i. If a household member has earnings from both subsidized and unsubsidized employment, the computation follows the sequence in subsection (1) above;

ii. Only the earned income disregard is allowed; and

iii. If less than $90 is deducted from unsubsidized earnings, however, the remainder of the $90 will be deducted from any subsidized earnings.

d. Whenever the sum of these deductions exceeds the gross earned income of the household member, the maximum allowable deduction is the amount of the gross earned income.

e. Child care provided as a support service to Reach Up households does not constitute dependent care expenses and is not an allowable deduction.

2251.2 Business Expenses (08/01/2024, 23-28)

a. Business expenses that are deducted from gross self-employment income to determine adjusted gross earned income, are limited to operating costs necessary to produce earned income and include: