9075 Procedure for Calculating Income Which Can Be Annualized to Reflect Monthly Calculation

1) Add all gross self-employment (including capital gains) for the period of time over which the self-employment income is determined. 2) Subtract the self-employment standard deduction. 3) Divide the income by the number of months over which the income will be averaged. 4) For those households whose self-employment income is not averaged but is instead calculated on an anticipated basis, add any capital gains the household anticipates it will receive in the next 12 months, starting with the date the application is filed, and divide this amount by 12. This amount shall be used in successive certification periods during the next 12 months, except that a new average monthly amount shall be calculated over this 12- month period if the anticipated amount of capital gains changes. Add the anticipated monthly amount of capital gains to the anticipated monthly self-employment income, and subtract self-employment standard deduction. Calculation I - Gross Income (a) Anticipated capital gains for 12-month period beginning with date of application. (b) + Anticipated gross self-employment income. (c) = Gross self-employment income. Calculation II - Net Self-employment Income (a) Gross self-employment income. (b) - self-employment standard deduction. (c) Divided by 12 (d) = Net monthly self-employment income. 9 DE Reg. 564 (10/01/05)