Scenario: Brother Morris, age 74, is considered a retired, inactive member of a religious order.
In October 2002, Brother Morris receives food, shelter, other perquisites, and a cash
stipend of $40.00 from the order. In addition, Brother Morris clerks at a private
law firm for $500.00 per month and turns these wages over to the order.
Analysis: While working at the private law firm, Brother Morris is considered an employee of
the law firm. Therefore, the $500.00 wages received from the law firm is counted as
earned income. Because Brother Morris is an inactive member of the order, the $40.00
cash stipend and the food and shelter being received are counted as unearned income.
The FO determines that the other perquisites provided by the order (haircuts and use
of a vehicle) are not countable income. The food and shelter provided by the order
is in-kind support and maintenance. The DO determines that the actual value of the
food and shelter is $210.00. Brother Morris is charged with $500.00 in earned income
and $241.66 in unearned income (the presumed maximum value of ISM of $201.66 + $40.00
cash stipend).