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Title 5: Centrally Administered Programs Page 44 Iowa Department of Human Services Employees’ Manual Chapter E: Healthy and Well Kids in Iowa (hawk-i) Income Revised August 20, 2010 Income Considered Income Considered Legal reference: 441 IAC 86.2(2)“a”(1) & (2) Count the earned and unearned income of all parents, spouses, and children under the age of 19 who are not students and who are living together, unless the income is specifically exempted. Earned Income Legal reference: 441 IAC 86.2(2)“a”(1) Earned income is the income a person produces as a result of the performance of services. Earned income is income in the form of a salary, wages, tips, bonuses, and commissions earned as an employee or net profit from self-employment. Earned Income From Employment “Earned income from employment” means total gross income. Earned Income From Self-Employment “Earned income from self-employment” means the net profit determined by comparing gross income with the allowable costs of producing the income. A person is considered “self-employed” when any of the following conditions exist: ♦ The person is not required to report to the office regularly except for specific purposes such as sales training meetings, administrative meetings, or evaluation sessions; or ♦ The person establishes the person’s own working hours, territory, and methods of work; or ♦ The person files quarterly reports of earnings, withholding payments, and Federal Insurance Contribution Act (FICA) payments to the Internal Revenue Service.