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Vermont Department for Children and Families Reach Up Eligibility Rules Economic Services Division 2200 71

1. Office or shop rental; 2. Taxes on farm or business property; 3. Employee salaries; 4. Interest on business loans; or 5. Cost of materials, stock, inventory, or livestock for resale required to produce this income. b. Business expenses do not include the following: depreciation, personal business and entertainment expenses, personal transportation costs, purchase of capital equipment, and payment on the principal of loans for capital assets or durable goods.

c. Tax returns and business records are considered appropriate sources of accurate documentation for farm and business income and expenses.

d. The income of a Reach Up household owning or operating a commercial boarding house shall be treated as any other business income.

1. A commercial boarding house is defined as an establishment licensed as a commercial enterprise offering meals and lodging for compensation.

2. In areas without licensing requirements, a commercial boarding house shall be defined as a commercial establishment offering meals and lodging with the intention of making a profit.

e. A difficulty-of-care payment, which is compensation to a foster care provider for the additional care required because the qualified foster individual has a physical, mental, or emotional disability, and which is distinct from payment made for room-and-board, is earned self-employment income. 1. Payment made by a foster care provider for respite care services is an allowable business expense.

f. The expense of furnishing room-and-board for a non-commercial boarding house, alone or as part of custodial care, is an allowable business expense.

1. These expenses shall not exceed the income the Reach Up household receives from the roomer/boarder for room-and-board.

2. If the Reach Up household can document that actual expenses for providing room and board are greater than the standard business expenses allowed, the actual expenses may be allowed as a business expense.

2251.3 Income from Providing Child Care (08/01/2024, 23-28)

a. A standard business expense deduction is provided for the expenses associated with providing meals to children receiving child care in the Reach Up household's home.

b. To receive the standard business expense deduction for the provision of meals the Reach Up household must report:

1. The number of children receiving meals;