Ariz. Admin. Code § R9-22-1424 - Use of Methods Listed in R9-22-1423 Based on Type of Income

A. New income.

1. Description. New income is income received from a new source during the first calendar month that the income is received from the source.

2. Calculating monthly income.

a. If a full month's income is received, the Administration or its designee shall use the appropriate method described in R9-22-1423 to calculate the monthly income.

b. If less than a full month's income is received, the Administration or its designee shall use the unconverted method to calculate the monthly income.

B. Terminated income.

1. Terminated income is income received during the last calendar month when no more income is expected to be received from that source.

2. Calculating monthly income.

a. If a full month's income is received, the Administration or its designee shall use the appropriate method described in R9-22-1423 to calculate the monthly income.

b. If less than a full month's income is received, the Administration or its designee shall use the unconverted method to calculate the monthly income.

C. Break in income.

1. Description. A break in income is a break in established frequency of income of one calendar month or more.

2. Calculating monthly income.

a. If a full month's income is received, the Administration or its designee shall use the appropriate method described in R9-22-1423 to calculate the monthly income.

b. If less than a full month's income is received, the Administration or its designee shall use the unconverted method to calculate the monthly income.

D. Contract income.

1. Description. Contract income is income a person earns under a contract or other legal document that specifies a length of time the contract or legal document covers, the amount of income to be paid, and the frequency of payment.

2. Calculating monthly income.

a. The Administration or designee shall calculate the monthly income based on the frequency of payment if income is paid more frequently than monthly.

b. The Administration or designee shall prorate over the period of time specified by the contract if income is paid monthly or less frequently.

D. Contract or regular seasonal income.

1. Descriptions.

a. Contract income is income a person earns under a contract that specifies a length of time the contract covers, the amount of income to be paid, and the frequency of payment.

b. Regular seasonal income is income that fluctuates based on season or is only received during a certain season, and can reasonably be anticipated based on history or other verification.

2. Calculating monthly income.

a. When the contract or regular seasonal income will not fluctuate over the 12-month period beginning with the month the application or renewal is submitted, the Administration or its designee shall use the appropriate income calculation method in R9-22-1423 for the frequency of receipt.

b. When the contract or regular seasonal income is anticipated to fluctuate over the 12-month period beginning with the month the application or renewal is submitted, the Administration or its designee shall calculate the monthly income as follows:

i. For a one-time contract that ends between the month the application or renewal is submitted and the end of the calendar year, divide the income that will be received from the application or renewal month through the end of the calendar year by the number of months in that period to get a monthly equivalent;

ii. For contracts that extend into the next calendar year, contract that are anticipated to be renewed and regular seasonal income, the Administration or its designee shall divide the income that will be received in the 12 month period beginning with the application or renewal month by 12 to get the monthly equivalent.

E. Unusual variation in the amount of income.

1. Description. Unusual variation is an amount of income that is different from the established amount received and is not projected to continue or recur.

2. Calculating monthly income.

a. When calculating income for the month in which an unusual variation in income occurs, the Administration or its designee shall include the unusual variation in the income calculation.

b. When an unusual variation in income occurs during the month, the Administration or its designee shall use the converted method for calculating monthly income if income is received weekly or bi-weekly.

c. When projecting income for the months following the month in which the unusual variation occurs, the Administration or its designee shall exclude the unusual variation in income from the income calculation.

F. Self-employment income.

1. Description. Self-employment income is income a person earns from the person's own trade or business less allowable expenses.

2. Calculating monthly income. The Administration or its designee shall prorate the income under R9-22-1422 .

a. When the self-employed person filed a tax return for the prior year and the person states that the current income is the same, the Administration or Administration's designee shall prorate the income under R9-22-1422 .

b. When the self-employed person did not file a tax return for the prior year or states that the current income is not the same, the Administration or Administration's designee shall:

i. Use the person's business ledger or other records to verify the current income received, less allowable expenses; and

ii. Use the appropriate method described in R9-22-1423 to calculate the monthly income.

c. When the self-employed person did not file a tax return or keep business records of the income received and expense incurred during the income period, the Administration or Administration's designee:

i. Shall use the person's written statement to verify income received,

ii. Shall not deduct incurred expenses from the income without hard-copy verification of the expense, and

iii. Shall use the appropriate method described in R9-22-1423 to calculate the monthly income.

Notes

Ariz. Admin. Code § R9-22-1424

New Section adopted by final rulemaking at 5 A.A.R. 294, effective January 8, 1999 (Supp. 99-1). Section repealed; new Section made by exempt rulemaking at 7 A.A.R. 4593, effective October 1, 2001 (Supp. 01-3). Section repealed; new Section made by final rulemaking at 11 A.A.R. 4942, effective December 31, 2005 (Supp. 05-4). Amended by final rulemaking at 20 A.A.R. 193, effective 1/7/2014.