Page 253

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

5662.2 Self-Employment Income That Increases or Decreases Substantially SNAP Manual 01/01/00 If the household anticipates changes in the self-employment enterprise, these changes must be considered when the self-employment income is anticipated. EXAMPLE: A household member raises chickens for a poultry processor. At recertification, he reports that one of his three chicken houses was destroyed in a storm. Since his oldest son has joined the service and left the home, he does not plan to rebuild the chicken house. His anticipated income must be adjusted to reflect this anticipated change in income and expenses. The county office worker will not change the self-employment income if the reported increase or decrease is due to a seasonal fluctuation in income. EXAMPLE: Mr. F has self-employment income from a roofing company. He applies for SNAP benefits in January. He reports no income from the roofing company due to bad weather. This is considered a seasonal fluctuation in income. The income from the roofing company will be anticipated based on last year’s income. If the increase or decrease is not due to a seasonal fluctuation, the county office worker must anticipate the effect of the change on the household’s self-employment income. Examples of such changes include, but are not limited to, a change in the type of business, a change in the size of the business, or a substantial change in the amount received for the product. EXAMPLE: Mr. K is self-employed as a bricklayer. He applies for SNAP benefits in March. He reports that he hasn’t been able to work since January when he had a heart attack. He has gone back to work, but he will not be able to work as many hours or to accept as many jobs. The worker must anticipate his self-employment income based on his current situation. 5662.3 Anticipating Capital Gains SNAP Manual 01/01/00 When self-employment income is anticipated, any capital gains that the household anticipates receiving during the 12-month period must be divided by 12 and the average monthly amount added to the monthly self-employment income. The average capital gain amount must be counted in each of the 12 months during which the income is anticipated to be received. However, if the anticipated amount of capital gains changes, a new average must be calculated.