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Chapter: 1800 Income Program: MSSI, SFP 16 Staff should continue to use available sources at hand (data exchanges, collateral contacts from the employer, etc.) to verify income before asking a customer to provide documentation.

Exception: The individual’s statement that his income exceeds the income standard is sufficient to deny or close medical assistance. However, medical assistance cannot be denied/closed without an ex parte determination of Medicaid eligibility. 1840.0300 SELF-EMPLOYMENT (MSSI, SFP) An individual who owns a business or otherwise engages in a private enterprise is considered self-employed. Income derived from self-employment is considered earned income.

This includes but is not limited to:

1. babysitting, 2. sales from a franchise company, 3. picking up and selling cans, 4. farm self-employment, or 5. selling newspapers.

Refer to passages 1840.0313 through 1840.0315 to determine net income as well as verification required. 1840.0313 Self-Employment Income (MSSI, SFP) Net earned income from self-employment is the total gross income derived from all trades and businesses as computed under the Internal Revenue Code, less deductions allowable under the code, attributable to such trades or businesses. It includes the individual's share of ordinary net income (or loss) from partnerships even though the partnership profits have not been distributed yet. 1840.0314 Home Produce for Personal Consumption (MSSI, SFP) Home produce is farm and garden produce (such as plants, animals or their by-products) usually grown or raised by the family. Any gain made from home produce is included income, unless it is traded for another home produce item.

Excess home produce is sometimes sold for profit even though there is no true commercial farming operation. If the income is being reported on tax returns then the reported net income must be considered the net income of the individual; otherwise, accept the individual's estimate of earned income if it appears to be reasonable.

Farms operated for profit, or primarily to market produce, are commercial farming operations. For commercial farms:

1. income is subject to self-employment income policies, and 2. the amount of income included can be based on the individual's estimate of the future value of the produce.