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Effective: December 1, 2006 |
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20.25.20.30ar1 - Roomer/Boarder Income (Archive) |
Archived: February 1, 2010 |
Roomer/boarder income is income that is received by a client for lodging, meals, or related services from people living in the client's home. It is self-employment income and is considered earned income .
Reminder: Allow earned income disregards and deductions from roomer/boarder income when calculating a person’s total countable income. See Income Calculation for more information on disregards and deductions.
Roomer/boarder income is different from rental property or from shared living expense income.
l For information on rental property income, see Rental Income.
l For information on shared living expense income, see Availability of Income.
The following policy regarding roomer/boarder income is only for MA and GAMC.
What Constitutes A Roomer/Boarder?
What Constitutes A Roomer/Boarder?
Roomer/boarder situations include the following:
l A roomer lives with the household and pays for lodging only.
l A boarder eats with the household and pays for meals only.
l A roomer and boarder lives and eats with the household and pays for lodging and meals.
Note: A roomer/boarder can include a family member who is not part of the household.
To determine the countable self-employment income, deduct allowable expenses to arrive at gross self-employed income.
l Allow a flat rate deduction for each roomer/boarder. The flat rate is determined by the situation. The roomer/boarder standard amounts are based on the:
n Roomer.
n Boarder.
n Roomer and boarder.
l Subtract the flat rate deduction for each roomer/boarder from total roomer/boarder income to get countable self-employment income.
To determine the countable self-employment income, deduct allowable expenses to arrive at gross self-employed income.
l Allow only expenses for providing a room, food or both to a roomer, boarder or roomer/boarder which have been verified to be deducted.
To determine the expense of providing a room:
n Prorate the total shelter expenses based on the percentage of the number of rooms for rent to the total rooms in the house.
n Do not include bathrooms, attics, or basements unless they are converted to living spaces.
l Deduct expenses, up to the amount of the income, to determine the countable self-employment income.