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Therefore, workers must use prudent person judgment in determining all factors related to calculating self- employment income and must carefully and thoroughly document relevant information.

When an activity is reported that produces income but the parent does not have a State of Alaska business license it is not an eligible activity and any income prior to the effective date of a State of Alaska business license would be considered unearned. Child care will not be authorized for time prior to the effective date of the State of Alaska business license if this is the only activity for this parent.

If the parent has a valid State of Alaska business license but a profit is not generated, based on the hours worked times the minimum wage, it is not considered an eligible activity. Child care will not be authorized for any times the parent is engaged in this activity however; the income is included as unearned income.

Relevant information includes the history of self-employment earnings in the same business and estimated changes in the self- employment income; type of verification used to determine adjusted gross self-employment income and allowable costs of doing business, noting expenses which are or are not allowed with the rationale, and the period of self-employment. Designees are to determine whether or not the costs of doing business reported are allowable for CCAP.

Clarifying information may be needed depending on the verification submitted as well as collateral contacts or information from other sources. These conversations need to be documented in the ICCIS case note to support the use or non-use of allowable costs of doing business when calculating the family income.

1. Persons are Considered in a Self-Employment Activity if they: a. Are responsible for obtaining or providing a service or product to the public as one’s business for the purpose of earning a profit; b. Have a current State of Alaska business license (or proof of application to obtain), any other license, permit, or certificate necessary to perform the work such as a commercial fishingor crew license for the individual’s role on a boat; c. Generate a profit and net income from the business which means earning a wage from the self-employment activity that is equal to or more than the current State of Alaska minimum wage; d. Are not required to have federal income tax and Federal