Department of Human Services

Families First Online Policy Manual

Treatment of Income

Revised:

21.31

ASSISTANCE UNITS WITH BOARDERS

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AUs that take in boarders or that operate commercial boarding houses are considered self-employed.  Identifiable expenses are allowed as costs of doing business, as in any self-employment.

 

Determining Income for AU

 

The income from boarders (self-employment income) includes all direct payments to the household for room and meals, including contributions to the household’s shelter expenses.  Shelter expenses paid directly by boarders to someone outside of the household are not counted as income to the AU.

 

Cost of Doing Business

 

After determining the income received from the boarders, exclude that portion of the boarder payment which is a cost of doing business.  The cost of doing business is equal to one of the following, provided that the amount allowed as the cost of doing business does not exceed the payment the household received from the boarder for lodging and meals:

 

·        The cost of the Thrifty Food Plan for a household size that is equal to the number of boarders.

 

·        The actual documented cost of providing room and meals if applicant claims actual costs exceeding the Thrifty Food Plan.  If actual costs are used, the only separate and identifiable costs of providing room and board to the boarder are excluded.

 

Glossary

 

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