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Title 7: SNAP Page 67 Iowa Department of Health and Human Services Employees’ Manual Chapter I: Specific Households and Participants Self-Employed Households Revised February 13, 2026 Income

Household 1 Business A Earned Business B Earned Business C Unearned Business D Unearned Gross Income $100,000 $ 6,000 $ 45,000 $ 21,000 Expenses - 92,000 - 9,000 - 49,000 - 15,000 Profit/Loss $ 8,000 $ (3,000) $ (4,000) $ 6,000 $ 8,000 Earned Business A $ (4,000) Unearned Business C + (3,000) Earned Business B + 6,000 Unearned Business D $ 5,000 Earned income

2,000 Unearned income Prorate and apply 20% deduction Prorate and no 20% deduction If at this point the earned self-employment enterprises show a loss, the unearned self-employment enterprise show a profit, and there is an overall profit after offsetting, do not allow the 20 percent earned income deduction.

Household 2 Business N Earned Income Business M Earned Income Business O Unearned Income Gross Income $ 12,000 $ 8,000 $ 9,000 Expenses - 10,000 - 12,000 - 5,000 Profit/Loss $ 2,000 $ (4,000) $ 4,000 $ 2,000 Earned Business N

+ (4,000) Earned Business M

$ (2,000) Earned Income

4,000 Unearned Business O

$ (2,000) Earned income

+ 4,000 Unearned income

$ 2,000 Prorate and no 20% deduction If at this point the earned self-employment enterprises show a profit, the unearned self-employment enterprises show a loss, and there is an overall profit after offsetting, allow the 20 percent earned income deduction.