(1) Income standards as set forth in ARM 37.49.407 are used to determine whether a child or children is IV-E eligible based on income. Two sets of income standards are used. They are as follows:
(a) the gross monthly income (GMI) standards, which specify the maximum level of gross monthly income a filing unit with a particular number of members may have to be IV-E eligible; and
(b) the net monthly income (NMI) standards, which specify the maximum level of net monthly income a filing unit with a particular number of members may have to be IV-E eligible.
(2) To determine the IV-E eligibility of a child or children, the filing unit's gross monthly income as defined in ARM 37.49.101 is compared to the applicable GMI standard, and, after specified exclusions and disregards specified in ARM 37.49.412, 37.49.413, and 37.49.414 are applied, it is compared to the applicable NMI standard. If the filing unit's gross monthly income exceeds the GMI standard or the filing unit's net monthly income exceeds the NMI standard, the child or children are not IV-E eligible.
(3) The GMI and NMI standards which are used for each comparison are chosen based on the number of the persons in the filing unit and whether the filing unit has a shelter obligation.
(a) A filing unit is considered to have a shelter obligation if a member of the filing unit is obligated to meet a portion of the shelter expenses of the filing unit's place of residence, such as rent, a payment under a contract to purchase a house or other place of residence, a mortgage payment, real property taxes, home owner's insurance, mobile home lot rent, or utilities such as heating fuel, water, or lights. A filing unit receiving a government rent or housing subsidy is considered to have a shelter obligation even if the filing unit's share of the rent or housing payment is $0.
(4) Income received or reasonably expected to be received in the month of eligibility is compared to the applicable GMI and NMI standards.