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The following steps lead to the determination of net monthly income for most households:
· Take the total monthly income earned by all household members, minus income exclusions, to determine monthly gross household income
· Multiply the monthly gross earned income by 80 percent to determine the net household monthly income
· Add the total monthly unearned income of all household members, minus income exclusions, to the net monthly earned income
· Subtract the appropriate standard deduction for the household size
· Total the allowable medical expenses, less reimbursements (e.g., by a third-party insurer) for those household members who meet Special Provisions for the Elderly and People with Disabilities. If these costs exceed $35 per month, subtract that portion of the medical expenses that exceeds $35 per month. If these costs are $35 or less, go to the next step
· Subtract monthly dependent care expenses, if any, up to $200 for each child under age two and $175 for all other dependents
· Subtract allowable monthly child support payments
· Total the allowable shelter expenses and subtract 50% of the household's monthly income after all the above deductions have been subtracted from the total shelter expenses. The remaining amount, if any, is the excess shelter expense. If there is no excess shelter expense, the household's net monthly income has been determined. If there is excess shelter expense, go to the next step
· Subtract the full amount of the excess shelter expense if the household contains an elderly or disabled member. For all other households, subtract the excess shelter expense up to the capped maximum deduction amount for shelter.
The result of these calculations determines the household’s net monthly income.
Complete details of net income calculation are listed in 106 CMR 364.500. It is available in PDF format at:
http://www.mass.gov/Eeohhs2/docs/dta/g_reg_364.pdf
(You must have Adobe Acrobat Reader to view this file.)
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