N.J. Admin. Code § 10:69-10.40

Current through Register Vol. 56, No. 21, November 4, 2024

Section 10:69-10.40 - Evaluating LRR's capacity to support

(a) The LRR's capacity to support shall be based on his or her total gross monthly income, including all income of whatever kind and from whatever source except as stated in this section.

(b) Income determination rules are as follows:

1. "Gross income" means income before deductions, or the net profit from a business, farm or profession before income and other personal taxes are deducted. "Net profit" is the total revenue less the cost of producing the revenue. Business deductions which are allowable for income tax purposes may be recognized as expenses of producing this revenue.

2. The average income for the most recent period of four months may be accepted as satisfactory evidence of the average for the last year, but the income record for the entire 12-month period may be considered if the individual so requests and makes the necessary information available.

3. When an LRR is receiving food or lodging or both as part of his or her income, the total gross income shall be determined as follows:

i. The gross cash payment plus the monetary value of the maintenance received as used by the employer for tax purposes (the employer's monetary evaluation for payment of Social Security and withholding taxes).

4. When an LRR has roomer-boarders living in the home, 10:69-10.12(c) or 10.20 shall be used to determine the net income to the LRR from such roomers or roomer-boarders.

5. When an LRR, other than a natural or adoptive parent, is living in the home of an eligible unit and makes payment to the eligible unit toward household expenses, that payment shall be treated as income available to the eligible unit in accordance with 10:69-10.12(c), if extensive personal services are provided, or N.J.A.C. 10:69-4.12. Such payment does not otherwise affect the LRR's evaluated capacity, if any, to contribute to support.

6. When an LRR has an emancipated child living in the home, such child shall be considered as a roomer or roomer-boarder.

(c) Whenever an LRR or his or her dependents are the recipients of benefits, current or accrued, which are granted for and restricted to a specific purpose in accordance with the requirements of the law or contract under which they are provided, such as education, relocation, rehabilitation, medical care, and so forth, such benefits shall not be included in the income of the LRR for the purpose of computing his or her evaluated capacity to support.

(d) The following types of extraordinary expenses shall be considered in the manner specified, as affecting the LRR's capacity to contribute to the support of the eligible unit:

1. When an LRR is supporting or making contributions to support (including judicial orders for support) of a parent, child, separated or divorced spouse who is not living in the home of the LRR, the actual amount of such contribution shall be subtracted from the LRR's gross monthly income. These persons shall not be included in the determination of the LRR's family size.

2. Where the average monthly cost of medical, dental, and other medical services exceeds the appropriate amount shown in the following schedule of medical expenses, the amount of the excess shall be subtracted from the LRR's gross monthly income:

LRR's	Monthly medical
family size	expenses
1	$ 45
2	60
3	75
4	90
5	100
6 or more	110

3. When an LRR, whether before or following the determination of his or her capacity to support, is required to incur debts due to catastrophic events over which the LRR had no control (for example: fire, or flood), other than medical, the verified monthly amount of payments necessary to liquidate these debts shall be subtracted from his/her gross monthly income.

i. Whenever an LRR has been determined not to have a capacity to support for a specified period in order to liquidate indebtedness due to catastrophic events, the agency shall reevaluate the LRR's capacity to support at the date set for full payment of the debt.

4. If the LRR is providing educational expenses for one or more of his or her dependents for whom free educational facilities are not available, such expenses shall be deducted from the LRR's gross monthly income as follows:

i. When the individual is being maintained in the LRR's home, subtract the verified cost of tuition, fees, books and transportation, prorated on a 12-month basis.

ii. When the individual is being maintained away from home, subtract the above items plus any cost of maintenance in excess of $ 1,075 per annum, prorated on a 12-month basis.

N.J. Admin. Code § 10:69-10.40