(1) To determine the net monthly income which will be compared to the applicable NMI standard, the disregards set forth in (2) (a) and (b) below are subtracted from the total gross earned income of each member of the filing unit after the exclusions provided in ARM 37.49.412 have been applied.
(2) The following disregards will be applied in the order listed:
(a) a standard work expense disregard of $90 for each member of the filing unit who has earned income; and
(b) $30 plus 1/3 of the balance of earned income for each member of the filing unit who has earned income; and
(c) a dependent care disregard for payments made by a member of the filing unit for the care of a dependent child or incapacitated adult living in the same home as the filing unit, provided that:
(i) the amount disregarded may not exceed $175 per month per person for persons 2 years of age or older or $200 per month per child for children younger than 2 years of age;
(ii) the disregard applies only to payments for care during the time when the employed member of the filing unit is at the place of employment or en route between the place of employment and the site of the dependent care; and
(iii) only amounts paid or due for the month for which eligibility is being determined may be disregarded.