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Title 7: SNAP Page 71 Iowa Department of Health and Human Services Employees’ Manual Chapter I: Specific Households and Participants Self-Employed Households Revised February 13, 2026 Ending Self-Employment If bankruptcy and reorganization are filed under Chapter 11 provisions, the household is still considered self-employed. Anticipated income based on the most recent year’s tax return and the debt reorganization plan can be used to determine SNAP eligibility. If a household receives income from self-employment after the enterprise has ended, count it as:  Earned, if the former enterprise produced earned income.  Unearned, if the former enterprise produced unearned income. Deduct any expenses related to the terminated enterprise that are paid in the same month as the income is received. Allowable expenses are those listed in Allowable Costs of Producing Income. Add the net income to other earned income and apply the earned income deduction to the total. Self-Employment Policies for Farmers The policies under Self-Employed Households apply to farmers. The following sections contain additional information that pertains only to farmers and not to other self-employed households. They describe:  Treatment of farm-related resources.  Treatment of special kinds of farm income.  When and how farm losses can be offset against other countable income. Resources Legal reference: 7 CFR 273.8(e)(5), 273.8(h) Exclude as a resource grain that is expected to be in storage for less than 12 months. It is considered property essential to employment. Count the equity value of grain that will be stored for 12 or more months. Count patronage dividends as a resource when they are paid as shares of stock in a cooperative. Continue to exclude the following resources for one year from the date the farming ends:  Property essential to a self-employed farmer.  Licensed vehicles previously used primarily for self-employed farming.