R986-200-236. Earned Income

  (1) All earned income is counted when it is received even if it is an advance on wages, salaries or commissions.

  (2) Countable earned income includes:

  (a) wages, except Americorps*Vista living allowances are not counted;

  (b) salaries;

  (c) commissions;

  (d) tips;

  (e) sick pay which is paid by the employer;

  (f) temporary disability insurance or temporary workers' compensation payments which are employer funded and made to an individual who remains employed during recuperation from a temporary illness or injury pending the employee's return to the job;

  (g) rental income only if managerial duties are performed by the owner to receive the income. The number of hours spent performing those duties is not a factor. If the property is managed by someone other than the individual, the income is counted as unearned income;

  (h) net income from self-employment less allowable expenses, including income over a period of time for which settlement is made at one given time. The periodic payment is annualized prospectively. Examples include the sale of farm crops, livestock, and poultry. A client may deduct actual, allowable expenses, or may opt to deduct 40% of the gross income from self-employment to determine net income;

  (i) training incentive payments and work allowances; and

  (j) earned income of dependent children, unless the child is participating in required employment or training activities.

  (3) Income that is not counted as earned income:

  (a) income for an SSI recipient;

  (b) reimbursements from an employer for any bona fide work expense;

  (c) allowances from an employer for travel and training if the allowance is directly related to the travel or training and identifiable and separate from other countable income; or

  (d) Earned Income Tax Credit (EITC) payments.