((a)) ** Computation of student aid index**
((1)) ** In general** For each independent student without dependents other than a spouse, the student aid index is equal to (except as provided in paragraph (2)) the sum of—
((A)) the family’s available income (determined in accordance with subsection (b)); and
((B)) the family’s available assets (determined in accordance with subsection (c)).
((2)) ** Exception** If the sum determined under paragraph (1) with respect to an independent student without dependents other than a spouse is less than − $1,500, the student aid index for the independent student shall be − $1,500.
((b)) ** Family’s available income**
((1)) ** In general** The family’s available income is determined by—
((A)) deducting from total income (as defined in )—
((i)) Federal income taxes;
((ii)) an allowance for payroll taxes, determined in accordance with paragraph (2);
((iii)) an income protection allowance that is equal to—
((I)) in the case of a single independent student without dependents, $14,630, as adjusted pursuant to ; and
((II)) in the case of a married independent student without dependents, $23,460, as adjusted pursuant to ; and
((iv)) in the case of a married independent student, an employment expense allowance, as determined in accordance with paragraph (3); and
((B)) multiplying the amount determined under subparagraph (A) by 50 percent.
((2)) ** Allowance for payroll taxes** The allowance for payroll taxes is equal to the sum of—
((A)) the total amount earned by the student (and spouse, if appropriate), multiplied by the rate of tax under ; and
((B)) the amount earned by the student (and spouse, if appropriate) that does not exceed such contribution and benefit base (twice such contribution and benefit base, in the case of a joint return) for the year of the earnings, multiplied by the rate of tax applicable to such earnings under .
((3)) ** Employment expense allowance** The employment expense allowance is equal to the following:
((A)) If the student is married, such allowance is equal to the lesser of $4,000 or 35 percent of the couple’s combined earned income (as adjusted by the Secretary pursuant to ).
((B)) If the student is not married, the employment expense allowance is zero.
((c)) ** Family’s available assets**
((1)) ** In general**
((A)) ** Determination** Except as provided in subparagraph (B), the family’s available assets are equal to—
((i)) the difference between the family’s assets (as defined in ) and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by
((ii)) 20 percent.
((B)) ** Not less than zero** The family’s available assets under this subsection shall not be less than zero.
((2)) ** Asset protection allowance** The asset protection allowance is calculated based on the following table (as revised by the Secretary pursuant to ): section 1087rr(d) of this title
((d)) ** Computations in case of separation, divorce, or death** In the case of a student who is divorced or separated, or whose spouse has died, the spouse’s income and assets shall not be considered in determining the family’s available income or assets.