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(a) The applicant or recipient who is self-employed shall choose one of the following deductions:

(1) 40 percent of gross self-employed income, or

(2) reasonably anticipated self-employment expenses to the same extent allowed in the CalFresh Program (Section 63-503.41).

(b) Recipients who are self-employed shall be allowed to change the method of deduction identified in Section 44-113.212(a) only at redetermination or every six months, whichever occurs first.

(SAR) .213 Combine the total monthly earnings for the family determined in Section 44- 113.211(SAR) with the monthly net self-employment income determined in Section 44-113.212(SAR).

(AR/CO) Combine the total monthly earnings for the family determined in Section 44- 113.211(AR/CO) with the monthly net self-employment income determined in Section 44-113.212(AR/CO).

.214 Apply, as specified in Section 44-111.23, the $225 disregard to the reasonably anticipated total monthly disability-based unearned income for the family.

(SAR) .215 Apply up to $225 of the remainder of the $225 disability-based unearned income disregard to the reasonably anticipated total monthly earned income for the family as determined in Section 44-113.213(SAR).

(AR/CO) Apply up to $225 of the remainder of the $225 disability-based unearned income disregard to the reasonably anticipated total monthly earned income for the family as determined in Section 44-113.213(AR/CO).

.216 Apply the 50% disregard to any remaining earned income for the family.

.217 Add to the amount in Section 44-113.216 any excess nonexempt disability-based unearned income and/or any nonexempt unearned income. This total is the net nonexempt income available to the family.

.218 Add together the amounts remaining after application of the above sections for each recipient. This total is net nonexempt earned income for the FBU.

CALIFORNIA-DSS-MANUAL-EAS MANUAL LETTER NO. EAS-14-02 Effective 7/1/14

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