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SNAP CERTIFICATION MANUAL – SECTION 5000 5600 Self-Employment Income 5623 Determining Income

EXAMPLE 2: Mr. Green also has two boarders in his household. They also pay $200 each on a monthly basis. Mr. Green does keep receipts for the food he purchases for his boarders. He also keeps records of his costs for utilities. His total documented costs are $255. $255 will be excluded from the $400 total payment as the allowable cost of doing business.

5623 Determining Income SNAP Manual 01/01/00 Net monthly self-employment income from boarders is determined by: 1. Adding together all direct payments to the household by the boarders, then 2. Subtracting the allowable costs of doing business.

5630 Self-Employment Income SNAP Manual 01/01/00 To be self-employed, an individual must be engaged in an enterprise for the purpose of producing income. The individual must have direct involvement in the enterprise. EXAMPLE: A person who rents his land to another individual to raise a crop is not a self- employed farmer if he is not directly involved in the growing or harvesting of the crop. Most self-employment enterprises are sole proprietorships. A sole proprietorship is an unincorporated business that has no existence apart from the owner. The business liabilities are the liabilities of the owner.

5631 Partnerships SNAP Manual 01/01/00 Some self-employment situations involve a partnership. In a partnership, there should be an oral or written agreement that determines the amount of income and expenses attributed to each partner.

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Page 246

Official source

SNAP CERTIFICATION MANUAL – SECTION 5000 5600 Self-Employment Income 5623 Determining Income

EXAMPLE 2: Mr. Green also has two boarders in his household. They also pay $200 each on a monthly basis. Mr. Green does keep receipts for the food he purchases for his boarders. He also keeps records of his costs for utilities. His total documented costs are $255. $255 will be excluded from the $400 total payment as the allowable cost of doing business.

5623 Determining Income SNAP Manual 01/01/00 Net monthly self-employment income from boarders is determined by: 1. Adding together all direct payments to the household by the boarders, then 2. Subtracting the allowable costs of doing business.

5630 Self-Employment Income SNAP Manual 01/01/00 To be self-employed, an individual must be engaged in an enterprise for the purpose of producing income. The individual must have direct involvement in the enterprise. EXAMPLE: A person who rents his land to another individual to raise a crop is not a self- employed farmer if he is not directly involved in the growing or harvesting of the crop. Most self-employment enterprises are sole proprietorships. A sole proprietorship is an unincorporated business that has no existence apart from the owner. The business liabilities are the liabilities of the owner.

5631 Partnerships SNAP Manual 01/01/00 Some self-employment situations involve a partnership. In a partnership, there should be an oral or written agreement that determines the amount of income and expenses attributed to each partner.