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MS 5330

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Volume 2 – Supplemental Nutrition Assistance Program (SNAP) MS 5330 – R. 8/31/26 – OMTL – 705 Budgeting – Non-Farm Income

Self-Employment Non-farm Income: Determine non-farm self-employment income in the following manner. If an income tax return is provided as verification, only the Schedule C portion from the most recent income tax return is sufficient to verify self-employment gross income and business expenses.

[If the self-employment activity has been in operation for at least 12 months, use the individual's Schedule C portion from their latest tax return (if filed and representative of the ongoing income) or the individual's business records for the last year to prorate the income over 12 months. Whenever records or receipts other than tax returns are used, document the reason the tax return was not used, and document in detail the records or receipts that were used to determine countable income.

If the self-employment activity has been in operation for less than 12 months, prorate the income by dividing by the number of months the activity has been in operation.

Households that report weekly payments of self-employment will have their monthly income determined by anticipating the monthly self-employment income. Compute the anticipated monthly income by using the actual income received by the household. Use the household's available self-employment income information (such as household records or an employer statement) to arrive at a monthly amount. Advise the household to keep records of self-employment income so an accurate determination can be made. Recalculate the self-employment income at the next recertification.

Note: Do not convert, as self-employment is budgeted based on actual income and prorated over the certification period.]

If the prorated income does not accurately reflect the household's actual circumstances due to a substantial increase or decrease in business due to unusual seasonal changes or other changes, base the amount of self-employment income on anticipated earnings that are representative of the ongoing situation. Use the individual’s records or a written statement of anticipated earnings in this situation. The anticipated earnings must be for an amount of no less than a period of a month. For example, the individual started babysitting and is paid $125 per week. The individual must anticipate and verify a monthly amount instead of a weekly amount.

A. Income is for a Year. Self-employment income, which represents all or a portion of a household's annual support, is annualized over 12 months, even if the income is received in only a short period of time. This self-employment income is annualized even if the household receives income from other sources in addition to self-employment.