Averaging Income
To obtain a household's average monthly income, income intended to cover a specific period of time is divided by the number of months the income is intended to cover. A. Income shall be averaged for: 1. Households who derive their annual income from self-employment. These households shall have their income annualized over a twelve (12) month period even if the income is received within a shorter period of time. 2. Households who derive their annual income from contract income shall have that income averaged over a twelve (12) month period. (This requirement is not applied to income from a contract received on an hourly or piecework basis.) 3. Households receiving educational income as defined in Section 4.404, D. The income is prorated over the period of time it was intended to cover. 4. Other households not previously mentioned, such as migrant or seasonal workers, may elect to have their fluctuating income averaged over the period of time the income is intended to cover. Self-employment income, contract income, and fluctuating income intended to cover a specific period of time shall not be averaged or annualized for migrant households that are destitute of income as defined in Section 4.406. B. The types of households listed above shall have their self-employment income, contract income, or educational monies annualized or prorated, and added to other household income to determine monthly income for SNAP. C. To average income prospectively, the eligibility technician shall use the household's anticipation of income, considering fluctuations, to obtain a monthly average amount for the period of certification. The number of months used to arrive at the average income need not be the same as the number of months in the certification period, such as the known income from two (2) previous months may be averaged and projected for each month of a certification period that is longer than two (2) months. Refer to Section 4.403.11 for more information on computing self- employment income. Fluctuating income that has been averaged may be adjusted if verification of a change in circumstances is received.