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ESA SNAP Policy Manual 131 Income of child daycare and family home daycare providers Income from odd jobs (money from sporadic or periodic work without a business license or established employer-to-employee relationship) Payments from a roomer or boarder − Note: Foster care payments for individuals considered members of the SNAP household are considered unearned income. Income from ownership of rental property − Note: Income derived from a rental property is considered earned income if a member of the household is actively engaged in the management of the property at least 20 hours per week. 11.2.1.1 Self-Employment Status A self-employed individual earns income through a trade or business, not wages from an employer: Self-employed people may be sole proprietors, partners or independent contractors. Independent contractors do not have taxes and Federal Insurance Contributions Act (FICA) payroll taxes deducted from payment for their work and receive IRS 1099 forms from entities they perform work for. Business ownership can be checked through the DC Business License Center at Online Resources | DLCP (dc.gov). See Table 25.5.b, Self-Employment Business Structure, for an overview of self-employment business structures. 11.2.1.2 Allowable Self-Employment Expenses Generally, expenses allowed as a deduction under the IRS code are also allowable expenses to be excluded when determining self-employment income. ESA will exclude the following verified expenses from the gross proceeds of self-employment income: Labor, taxes, insurance and other expenses for employees (not including the self-employed person) Payments on the principal of the purchase price of income-producing real estate and capital assets, equipment, machinery and other durable goods Interest—but not the principal—on loans for equipment, real estate or income-producing property Insurance premiums on equipment, real estate and other income-producing property Taxes paid on income-producing property Transportation or vehicle expenses for work only Stock and raw material Cost of goods sold, supplies and materials Return