Scenario: Brother Morris, age 74, is considered a retired, inactive member of a religious order.
In October 2002, he 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 he receives from the law firm is counted
as earned income. Because he is an inactive member of the order, the $40.00 cash stipend
and the food and shelter he receives 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).