Arkansas Administrative Code › Agency 016 - DEPARTMENT OF HUMAN SERVICES › Division 20 - Division of County Operations › Rule 016.20.95-021 - FSC - Changes in Standard Deductions

Current through Register Vol. 49, No. 6, June, 2024
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6210
Farm Loss Deduction
The losses from a farming enterprise operated by a
				household member may be deducted from the household's other countable income.
				FSC 5640.1 contains instructions for applying the Farm Loss
				deduction.
6300
The Standard Deduction
A uniform standard deduction is applied to all households
				regardless of size, type of income or household composition. See Appendix D for
				the current standard deduction.
The standard deduction is applied in the following manner
				on the Food Stamp Authorization document, DC0-233, when there is both earned
				and unearned income in the household.
1.
Calculate the net earned income
			 (field 37) by applying the earned income/deduction as described in FSC 6200
			 above.
2.
Total all
			 unearned income. Enter this figure in field 49.
3.
Calculate gross income by adding
			 together net earned income and total unearned income. Enter this figure in
			 field 51.
4.
Subtract
			 the standard deduction in field 52 from the gross income (field 51). The figure
			 obtained will be adjusted gross income. Enter this figure in field
			 53.
Example - The household has one member with gross
				earnings of $795. Two members each receive an AFDC grant of $142. The
				calculations which follow are based on deduction amounts in effect
				12-1-95.
1.
Calculate net earned income
(field 37). Gross
			 earned income $795 x 20% = $159 earned income deduction. $795 gross earned
			 income - $159 earned -$636 net earned income.
2.
Calculate total unearned
			 income
(field 49). $142 AFDC + $142 AFDC «
			 $284
3.
Calculate total gross income
(field 51). $636
			 net earned income + $284 total unearned income * $920 gross
			 income.
* 4.
Subtract the standard deduction
(field 52). $920 total
			 gross income - $134 standard deduction = $786 adjusted gross income.
**
When there is only earned income in the food stamp
				budget, the gross income (field 51) will consist of the amount calculated as
				the net earned income in field 37.
** Effective 12-1-95, the standard deduction is reduced
				to $134 as mandated by
				P.L.
				104-37.
*
Example: The household reports only earned
				income of $795. The
caseworker calculates the earned income deduction as $159
				and $636 as the net earned income in field 37. $636 will be entered as the
				total income in field 51 and the $134 standard deduction will be subtracted
				from this figure ($636 - $134 * $502) to obtain the adjusted gross income in
				field 53.
When there is only unearned income in the food stamp
				budget, the gross Income (field 51) will consist of the amount calculated as
				the total unearned income in field 49.
*
Example: The household reports only
				unearned income of two AFDC
checks. They total $284. $284 will be entered as the
				gross income in field 51 and the $134 standard deduction will be subtracted
				from this figure ($284 - $134 - $150) to obtain the adjusted gross income in
				field 53.