1. Bona fide loans and grants, except that part of a grant designated for living expenses or child care, is an income exclusion.
2. Any educational grant or loan insured under any program administered under the Higher Education Act is excluded.  These programs of student assistance include:

1. • Basic Educational Opportunity Grants;
   • Supplemental Educational Opportunity Grants;
   • The College Work Study Program;
   • National Direct Student Loans; and
   • Guaranteed Student Loans.

Some income, even though available, is not included in determining monthly gross income.

The following are considered resources and not considered when determining income.

The following are considered resources and not considered when determining income.

IM-#162, October 10, 2019

When possible, use the previous year’s tax forms to verify self-employment expenses.

The following overhead expenses are allowed as deductions from gross self-employment income.

Use the previous year’s tax forms to verify self-employment income. If the participant has been self-employed for one (1) year or more, divide the income received over the last 12 months by 12 to determine the household’s average monthly earnings.

If the participant has been self-employed for less than one (1) year, average the amount of self-employed income over the period of time the business has been in operation to determine the household’s average monthly earnings.

If the eligibility unit’s current income shows a substantial increase or decrease, a representative period of the irregular or sporadic income should be used to determine the average monthly amount.

If the eligibility unit has been receiving irregular or sporadic earned or unearned income over a period of one (1) year or more, divide the income received over the last twelve (12) months by twelve (12) to arrive at a monthly amount.

Unearned income for all members of the eligibility unit is considered in determining monthly gross income.  See 2010.045.10 Exclusions from Monthly Gross Income.  Enter all sources of unearned income in the eligibility system, whether the income is included or excluded for the Child Care Subsidy program.  For a list of income sources, see the 

Determine household eligibility by subtracting approved medical insurance deductions, from monthly gross income. Refer to 2010.045.15 Deductions from Gross Income.