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If the individual’s estimated average monthly adjusted gross income is more than the estimated monthly amount calculated at the current minimum wage, the individual is considered to be in an eligible activity for the time engaged in the self-employment enterprise. 2. Application Received Before or During Current Self- Employment Period When the self-employment enterprise has existed for a year or more and the family’s application is received before or during the current self-employment period their prior year’s actual income is to be used in determining their financial eligibility. For example: a. Applying during the current self-employment period: A parent who is engaged in their self-employment activity at the time of application is applying during the current self- employment period. This may be year-round or seasonal self- employment. The prior year's actual income would be required if the business was in operation during that year. If the self-employment was not in operation during the prior year, income would be required for the three (3) months prior to application, or for whatever period the business has been running when that is fewer than three (3) months.

b. Applying before the current self-employment period: A parent applies in January. During the interview, they report that they are self-employed as a seasonal fisherperson each year from April-August. This family is applying before the current self-employment period because they are applying in a calendar year in which the seasonal self-employment activity has not yet taken place. The prior year's actual income would be required.

When using tax returns the applicable schedule, based on the type of business, must be reviewed for expenses allowed by the Internal Revenue Service (IRS) and not an allowable expense for the CCAP. Using the adjusted gross income, add back in any non- allowable CCAP expenses. Also adjust the income and or expenses based on the self-employed individual’s statement of a substantial change or estimated substantial change to reach the adjusted gross income to beused.

If the income is received less than monthly, the estimated annual allowable business costs are subtracted from the estimated gross