Page 224

197

U.S. Return of Partnership Income including Schedule K-1 Partner’s Share of Income, Deduction, Credits, etc., or Form 1120-S U.S. Income Tax Return for an S Corporation including Schedule K-1 Shareholder’s Share of Income, Deductions, Credits, etc.; income and expense records or Self-Employment Income/Deduction Worksheet CC39 with copies of receipts (not originals) supporting the expenses; or other documentation of adjusted gross income and allowable costs of doing business as verification of income. Families who did not participate in the self-employment activity in the prior calendar year must provide the current year’s actual income. This may be in the form of: income and expense records or Self- Employment Income/Deduction Worksheet CC39 with copies of receipts (not originals) supporting the expenses; or other documentation of adjusted gross income and allowable costs of doing business.

When using verification other than a federal tax return and the business has been in operation for at least three (3) months, the income from the three (3) months prior to the month of application is required unless the self-employment activity was started less than three (3) months prior to the application submission. When the self- employment activity started fewer than three (3) months prior to the month of application, the family must provide income and expense records or Self-Employment Income/Deduction Worksheet CC39 with copies of receipts (not originals) supporting the expenses for the time period the business has been in operation. In addition, the self- employed individual’s statement regarding projected earnings is taken into consideration.

The family must also provide a schedule of their self-employment hourly activities either on the Child Care Assistance Application CC08 or a separate written document.

The Designee is responsible for confirming the parent has a valid State of Alaska business license by accessing the state website and printing a copy for the family’s file. The website is: http://commerce.alaska.gov/occ/home_bus_licensing.html.

The State of Alaska business license does not have to be valid for the same period as the income and expense information provided. The business license is an eligibility factor once the application is received and must be valid for them to be considered to be in an eligible activity and for care to be authorized.