Section 365.200 - Households with Boarders Who Are Not Household MembersThe amount of payment a household receives from a boarder who is not a household member shall be considered self-employment income to the household and handled in accordance with the instructions in 106 CMR 365.200. Instructions for handling those households which own and operate a commercial boarding house as stated in 106 CMR 365.900.
When determining a household's eligibility and benefit level, boarders who are not members of the household shall have none of their income and resources considered available to the household.
(A)Income from Boarders. All direct payments to the household for room and meals, including contributions to the household's shelter expenses, shall be considered earned income to the household. Shelter expenses paid directly to a third party outside of the household, such as a landlord, shall not be counted as income to the household.(B)Cost of Doing Business. After determining the income the household receives from boarders, the worker shall exclude from the income that portion which is the cost of doing business. The cost of doing business shall be equal to either of the following: (1) The maximum allotment for a household size that is equal to the number of boarders; or(2) The actual documented cost of providing lodging and meals if the actual cost exceeds the amount of 106 CMR 365.200(B)(1). If actual costs are used, only separate and identifiable costs of providing lodging and meals to boarders can be excluded. However, the amount allowed as a cost of doing business can never exceed the amount of payment the household receives from the boarder.
(C)Deductible Expenses. The household's countable self-employment income from boarders (after excluding the cost of doing business) is added to any other earned income prior to applying the earned income deduction. Shelter costs for households with boarders shall not include any shelter expenses paid by the boarder directly to a third party, such as the landlord or utility company.
Amended by Mass Register Issue 1330, eff. 1/13/2017.