Net monthly income is monthly gross nonexempt earned and unearned income minus:
- the earned income deduction for cases with earned income; and
- costs of doing business for cases with self-employment income; and
- the Standard Deduction; and
- allowable expense deductions (see PM 13-01-05 through PM 13-01-08).
When computing net income, drop cents from all figures before and after each calculation; except for individual medical expenses and shelter costs. After adding the individual medical expenses and shelter costs, drop cents.
Categorically eligible units (see PM 05-07-01) do not have to meet the Net Monthly Income Standard, but if net income is above the level where benefits are issued, a categorically eligible unit is ineligible.
For non-categorically eligible units, if the unit's net nonexempt income exceeds the Net Monthly Income Standard for the unit's size, the unit is ineligible.