Page 66

Title 7: SNAP Page 62 Iowa Department of Health and Human Services Employees’ Manual Chapter I: Specific Households and Participants Self-Employed Households Revised February 13, 2026 Resources

1. A self-employed household anticipates $5,000 in net countable income, and $95,000 in allowable business expenses. The household has $101,000 in resources as of the date of interview. Calculate countable resources as follows: $ 5,000 + 95,000 $100,000 (Net income) (Expenses) $101,000 - 100,000 $ 1,000 (Total liquid resources) (Net income + expenses) Countable resources The household is within resource limits. 2. A self-employed household anticipates gross income of $50,000 and $60,000 in allowable expenses. This results in a net loss of $10,000. As of the date of interview, total resources equal $61,500. Calculate countable resources as follows: $ 0 + 60,000 $ 60,000 (Net income) (Expenses)

$ 61,500

- 60,000

$ 1,500 (Total resources) (Net income + expenses) Countable resources The household is within resource limits. Income Legal reference: 7 CFR 273.11(a), CFR 273.9(b)(1)(ii) Policy: Determine net self-employment income by subtracting from the gross self- employment income either:  The standard deduction of 40% (see Standard Deduction), or  Actual allowable business expenses (see Allowable Costs of Producing Income). If the household has more than one self-employment enterprise, determine the monthly income of each enterprise. Then add these to the other income of the household. “Separate” self-employment enterprises included:  Enterprises under the ownership of different people.  Enterprises under ownership of the same person that are not the same type of business.

1. Mr. N grows crops, custom farms, and operates a hog confinement unit. Consider all these enterprises as one self-employment enterprise. 2. Ms. O operates a child care business from home and also sells Avon. Since the two businesses are unrelated, consider these to be separate enterprises, and compute two self-employment income figures. 3. Mrs. P operates a beauty shop and her husband operates a carpentry business. Compute the income from each business separately.