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SNAP CERTIFICATION MANUAL – SECTION 5000 5600 Self-Employment Income 5661 Annualizing Self Employment Income

5661 Annualizing Self-Employment Income SNAP Manual 01/01/00 (This section of policy applies to businesses in existence for longer than one year. The policy at SNAP 5662.1 applies to business in existence for less than one year.) Normally, self-employment income is annualized. Averaging self-employment income and expenses from the past year over a 12-month period annualizes the income. Regardless of whether the household receives the income monthly or less often than monthly, self- employment income will be annualized when the income represents a household’s annual income. EXAMPLE 1: A household member is self-employed as a carpenter. He receives income from various jobs throughout the year. His income from carpentry will be annualized. EXAMPLE 2: A household member has a farm. He raises cotton and soybeans. He receives income from the sale of the cotton and soybeans in the fall of the year, but it represents his annual income. His farm income will be annualized. Self-employment is annualized even if the household receives income from other sources. EXAMPLE: A household member has a farm. He raises cotton and soybeans. The income he receives from the sale of the cotton and soybeans in the fall of the year represents his annual income. Even though his wife works full time, the farm income will be annualized.

5662 Self-Employment Income that is not Annualized SNAP Manual 10/01/03 If self-employment income is intended to support the household for only part of the year, income from the past year will not be annualized. Instead, the self-employment income from the past year will be averaged over the period of intended use and counted as anticipated income in those months. EXAMPLE: Mr. G works as a bus driver for the local school. During the months of June, July and August, he raises produce and sells it at the farmer’s market. The income from the sale of produce is intended to support Mr. G’s family during the months of June, July and August. The income from this operation will be averaged over the months of June, July and August and shown in the SNAP budget only for those months.