0410.015.05.15  Overhead Expense of Producing Income

In certain instances of producing income “overhead” expenses exist. The overhead expenses are budgeted on an as paid basis; however, in no case may the expenses of producing income from a single source exceed the income (cash and/or kind) from that source.

EXAMPLE: A farmer earning income from a farming operation will have other expenses and the standard income exemption included in the budget. However, if the standard plus other expenses of producing this income exceed the gross income from the farming operation, only the standard plus other overhead costs up to the gross farm income is included. Other income which the farmer may have (e.g., RSDI) has no bearing on this determination.

Consider the following overhead expenses and subtract from the gross income to arrive at the net gross income.

1. Boarders: Food ($37 for each boarder).
2. Sales: Cost of vehicle operation (29.5¢ per mile effective 7/1/00, cost of supplies (as paid)).
3. Job Related Costs: (for the person who must furnish his/her own tools, equipment, transportation, etc. on the job.) Cost of tools, equipment repairs and replacement, supplies, transportation on the job at the rate 28¢ per mile, but not between home and the place of employment (as paid).
4. Farm Income: Cost of feed, seed, fertilizers, tools, equipment repair and replacement, labor, cost of operation of farm machinery, shipping costs, custom work, land rental or ownership costs (as paid).
5. Business Income: Cost of tools, equipment repair and replacement, labor, cost of operation of equipment, purchase of materials, supplies, or stock of goods, rental or ownership costs and utilities on separate business establishment, sub-contracting costs (as- paid).
6. Income-Producing Property: Cost of ownership (mortgage or contract payments, taxes, insurance, repairs), utilities, labor supplies (as paid).
7. Babysitting: If a person in the assistance group provides childcare in the home and provides meals for the child(ren), allow an expense of producing income for the meals provided. Use the following table to determine the figure to be allowed as an expense of producing income: