<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.sf7be5971-55e0-40ed-a58a-20c219441b4dP0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.sf7be5971-55e0-40ed-a58a-20c219441b4dC0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000002 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sf7be5971-55e0-40ed-a58a-20c219441b4d000003 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="sf7be5971-55e0-40ed-a58a-20c219441b4dP0"><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">    </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:12"><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000000">67:12:05:12</span></a><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000001">.  Earned income from business.</span><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0"> Net earned income or profit from </span><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">a </span><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">business is computed by subtracting business expense</span><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">s</span><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0"> from gross business income. Business expenses include the cost of merchandise and building or equipment rental, but do not include depreciation or the purchase of equipment or property. </span><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">I</span><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">ncome tax, lunches, transportation to and from work, and social security tax, are not considered business expenses but are covered under the standard set for earned income deductions. The earned income exemption for eligible applicants or recipients specified in § </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:14"><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000002">67:12:05:14</span></a><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0"> </span><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">is</span><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0"> applied to the net income after the standard earned income deduction specified in § </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:18"><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000002">67:12:05:18</span></a><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0"> and the dependent care disregard specified in § </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:05:21"><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000002">67:12:05:21</span></a><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">.</span></p><p dir="ltr" class="sf7be5971-55e0-40ed-a58a-20c219441b4dP0"><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4d000003"> </span></p><p dir="ltr" class="sf7be5971-55e0-40ed-a58a-20c219441b4dP0"><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">    </span><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000001">Source:</span><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0"> SL 1975, ch 16, § 1; 1 SDR 53, effective January 22, 1975; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 8 SDR 82, effective January 13, 1982; 9 SDR 24, effective September 2, 1982</span><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">; 52 SDR 55, effective December 2, 2025</span><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">.</span></p><p dir="ltr" class="sf7be5971-55e0-40ed-a58a-20c219441b4dP0"><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">    </span><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000001">General Authority:</span><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000002">28-</span><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000002">6-1</span></a><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">.</span></p><p dir="ltr" class="sf7be5971-55e0-40ed-a58a-20c219441b4dP0"><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">    </span><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000001">Law Implemented:</span><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000002">28-</span><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0-000002">6-1</span></a><span class="sf7be5971-55e0-40ed-a58a-20c219441b4dC0">.</span></p><p dir="ltr" class="sf7be5971-55e0-40ed-a58a-20c219441b4dP0"><span xml:space="preserve" class="sf7be5971-55e0-40ed-a58a-20c219441b4d000003"> </span></p></div></body></html>