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SNAP CERTIFICATION MANUAL – SECTION 5000 5600 Self-Employment Income 5662 Self Employment Income that is not Annualized

If the period of intended use will end before the month in which the household’s semi-annual report is due to be submitted, the county office must insure that the income is dropped from the budget after the period of intended use ends. Similarly, if the period of intended use ends after the semi-annual report is issued but before the household’s recertification is due, the county office must insure that income is dropped from the budget after the period of intended use ends. 5662.1 Self-Employment Enterprises in Business for Less than One Year SNAP Manual 10/01/03 No income from a self-employment business will be counted until the household has actually received income from the business. Once the operation has been in existence long enough to make a projection of future income, the income received to date will be used to project future income. To project future income, the county office worker will average the self-employment income and expenses over the period of time the business has been in existence. EXAMPLE: A household submits an initial application for SNAP. For the last eight months the case head and his wife have operated a detail shop. The couple provides their income tax return to verify their self-employment income. The self-employment income on the tax return covers the period from July 1 through December 31. The operation’s income and expenses must be divided by six to anticipate the couple’s income from the detail shop. When self-employment income cannot be projected, the household will be assigned a four- month certification period. At each recertification, the household must provide verification of the business’ income and expenses for the four-month period just prior to the month of recertification. Some households have a farm operation that shows income only at the end of the year. For example, a farmer raises cotton and soybeans. This household will not have any income to show from the self-employment operation until all crops are in and sold and all expenses paid. In that case, no income will be shown until the end of the year, and the household will be assigned four month certification periods until there is enough information to project self-employment income.