Page 13

Title 7: SNAP Page 8 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Types of Income Revised February 13, 2026 Contract Income Contract Income (Cont.) Household members who own a business can work under contract to customers of their business. This contract income is self-employment. See 7-I, Self-Employed Households.

Some employers may call their employees subcontractors to reduce expenses or the demand for benefits. This income is treated as wages. See Wages.

For property sold on contract see, 7-I, Self-Employed Households: Income: Property Sold on Contract. Corporation Income See 7-I, Corporations. Costs Withheld from Unearned Income (Excluded) Public Law 107-171 Exclude any reasonable income-producing costs withheld from gross unearned income. “Costs” are the amount actually spent to produce the income, rather than the amount owed. The net amount remaining after deducting these costs is counted as unearned income. This includes, but is not limited to:  Agency fees withheld from child support or alimony payments, and  Attorney fees withheld from workers’ compensation. Crime Victim Payments (Excluded) 273.9(c)(10) Public Law 103-322 Exclude payments received from a crime victim compensation program that is funded by the Crime Victims fund under Public Law 103-322. Debts Owed to a Household (Excluded) 7 CFR 273.9(b) Do not count the principal portion of payments made to the SNAP household to repay a loan or promissory note. See Interest Income if the household is getting an interest payment. Disability Benefits (Unearned or Earned) 7 CFR 273.9(b)(1) and (2) Count an employee’s disability benefits as unearned income, excluding any costs or taxes withheld, when the payment comes from an insurance company. Count an employee’s sick leave or disability payments as earned income when they are paid out of the employer’s funds.