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SNAP CERTIFICATION MANUAL – SECTION 5000 5600 Self-Employment Income 5690 Verification/Documentation

5690 Verification/Documentation SNAP Manual 01/01/00 Generally, self-employment income may be verified by viewing the household’s federal income tax return for the previous year. The household’s income tax return may be used as verification if the return reflects a full year’s income or the income can be divided over the months the business has been in existence. The “Schedule C” attached to the return should contain a complete statement of the household’s self-employment income and expenses. (Not all expenses listed will be excludable under SNAP policy.) If a tax return is not available, ledgers, bank books or other accounting records maintained by the household or prepared by a bookkeeper or accountant may be used. Receipts for the sale of goods and services and receipts for allowable costs of producing the income may also be accepted. If the household states there are no records, the DCO-226 or DCO-227 will be completed based upon the household’s declared income and expenses. This method may only be used temporarily. The household must be instructed to furnish records of income and receipts to verify costs at the next scheduled recertification. Required documentation includes: 1. Type of self-employment enterprise; 2. How the household receives this income - e.g. monthly, annually; 3. The length of time the enterprise has been in existence; 4. The figures used to arrive at the net self-employment income (DCO-226 or DCO-227) and the figures used to determine the monthly income; 5. The figures used to calculate any farm loss; and 6. The verification obtained.

5691 Certification Periods and Recalculating Annual Income SNAP Manual 10/01/03 The household’s annual income must be recalculated at about the same time each year. Normally, this will be soon after the first of the year when all the information needed to determine the household’s self-employment income for the year is available. To simplify the process of determining self-employment income, the household may be assigned one or two four-month certification period so that the household’s certification period will end about the time the household’s annual self-employment income is due to be recalculated. Once the annual self-employment income has been recalculated, the household will be assigned a 12- month certification period and will become subject to semi-annual reporting.