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SNAP CERTIFICATION MANUAL – SECTION 5000 5600 Self-Employment Income 5663 Costs of Producing Self Employment Income

• Exclude part of the rent or mortgage interest, taxes and insurance as a cost of producing the self-employment income. (Payments on the principal balance of a loan are not deductible as a cost of producing self-employment income.) The portion of the shelter to be excluded as costs of producing self-employment income may be based on the percentage of the total living space used solely for the self-employment enterprise. Any portion of a rent payment or mortgage, taxes or insurance payment used as a cost of producing self-employment income may be used as a shelter cost. EXAMPLE: A member of a household is self-employed as a beautician. The household is renting a home for $600 each month. The den has been converted into a beauty shop. The home has 1200 square feet. The square footage of the den (200 square feet) is about 16.6% of the square footage of the entire house. The portion of the rent payment that may be used as a cost of producing self-employment income is $99.60. The remainder of the rent payment, $501.40 may be allowed as a shelter cost. 5663.2 Utilities as a Cost of Producing Income SNAP Manual 01/01/00 If a self-employed individual’s house is on property connected to the property used for the business, the county office worker must determine if the self-employment costs can be separately identified from the household’s shelter costs. • If the utilities for the business are measured and billed separately, the utility costs for the business will be allowed as a cost of producing the self-employment income. The utilities for the residence will be allowed as a shelter cost. If the household is otherwise entitled to use the utility standard, the household may elect to do so. • If the utility costs for the business cannot be separately identified from the utility costs for the residence, the utility costs may not be allowed as a cost of producing the self- employment income. The household will not be allowed to use actual utility costs in the SNAP budget. However, if the household is otherwise entitled to use the utility standard, the utility standard will be used in the SNAP budget. If part of a self-employed individual’s residence is used for the business, the county office worker must determine if the self-employment costs can be separately identified from the household’s shelter costs. • If the utilities for the business are measured and billed separately, the utility costs for the business will be allowed as a cost of producing the self-employment income. The