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ESA SNAP Policy Manual 130 11.2 Earned Income Earned income is all money earned by a household member(s) through receipt of wages, salary, tips or commissions as an employee. Income earned directly from one’s own business, trade or profession rather than specified as salary or wages from an employer is considered self-employment income. For treatment of self-employment income, see Section 11.2.1, Self-Employment Income. Earned income is allowed certain deductions, as listed in Section 12.3, Earned Income Deduction. Examples of earned income include the following (see Section 11.2.1, Self-Employment Income, for examples of self-employment income):  All wages, salaries, tips and commissions for services performed as an employee  Rental income if a household member actively manages the property at least an average of 20 hours a week − Note: Ownership of rental property is considered a self-employment enterprise.  Training allowances received from non-Workforce Innovation and Opportunity Act vocational and rehabilitation programs sponsored by federal, state or local governments that are not for participant reimbursements  State-funded work study − Note: Federally funded work study is noncountable income; see Section 11.6, Excluded Income.  Garnishments from wages to pay a household expense (such as court-ordered child support)  Sick pay, vacation pay and bonus pay if employed at the time of receipt − Note: Sick, vacation and bonus pay is considered unearned income if paid in more than one payment after employment termination. If received as a one-time lump sum payment after employment termination, it is considered a lump sum payment and excluded as income. Refer to Table 25.2.b, Treatment of Income Chart, for further types of earned income. Legal Authority Earned income (federal): SNAP: 7 CFR § 273.9(b)(1)

11.2.1 Self-Employment Income Self-employment income is from a self-employment enterprise, including the total gain from the sale of any capital goods or requirements related to this business. The cost of doing business is excluded from the gross self-employment income (see Section 11.2.1.2, Allowable Self-Employment Expenses). Examples include the following:  Income of independent contractors, including many drivers who deliver food and goods (“gig workers”) Return