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For TANF, if approved for assistance, the individual must keep records and after no longer than two months actual income must be verified.

For SNAP, if the AG is subject to simplified reporting rules, the AG must report only if the actual income exceeds 130% of the gross income limit for the AG. However, if the AG reports new verification for TANF after two months, the new income is also included in the SNAP budget.

Seasonal self-employment income which is intended to meet the household’s needs for only part of the year should be prorated over the period the income is intended to cover. For example, clients who are self-employed only during the summer months to supplement their annual income will have their summer self-employment income prorated over the summer months. 3410.15.00 ALLOWABLE SELF-EMPLOYMENT COSTS

Allowable costs of producing self-employment income differ depending on the program.

Examples of allowable costs for all programs are: • Wages, commissions, and mandated costs relating to the wages for employees of the self- employed; • The cost of shelter in the form of rent, the interest on mortgage or contract payments, taxes, and utilities; • The cost of machinery and equipment in the form of rent or the interest on mortgage or contract payments; • Insurance on the real and/or personal property involved; • The cost of any repairs needed; and • The cost of any travel required. If the actual cost cannot be determined, 40 cents per mile may be used to calculate the expense. The number of miles must be verified to allow the 40 cents per mile.

For SNAP expenses which are not allowable costs of doing business include income net losses from previous periods, work related expenses covered by the 20 percent earned income deduction and depreciation. When calculating the costs of producing self-employment for SNAP the greater deduction, either 40% of the gross income or actual verified expenses directly related to the production of income, is used unless the business involves boarders or day care.

When calculating the income for SNAP boarders, either the maximum SNAP allotment for a household size that is equal to the number of boarders or actual costs is deducted as a cost of business.

When calculating the income for SNAP clients who are day care providers, use either the actual costs or the amounts used in the Child and Adult Care Food Program which are $1.70 for breakfast, $3.22 for lunch or supper or $0.96 per snack or a State Standard of $3.78 per day as a cost of doing business. These determinations must be made off-line and entered in eligibility system as a cost of doing business.