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MS 5330

[2]

B. Self-Employment Income is Received Monthly. Self-employment income, which is received every month, but which represents a household's annual support, is prorated over 12 months.

For households that receive Tobacco Settlement Agreement payments, count the payments in their entirety in the month received, or average the payment over the time period the income is intended to cover for households that do not own the land and are merely leasing their quotas to third parties to grow tobacco. This type of arrangement is not considered self-employment. Enter this income as unearned income and give the recipient the option of selecting the budgeting process that is to the household’s advantage.

The SNAP household is responsible for providing verification of the payment amount and how often the payment will be received. Application for the Tobacco Settlement payments can be made with the Kentucky Department of Agriculture. If recipients have questions about the payments, advise them to contact the Kentucky Department of Agriculture.

C. Seasonal Self-Employment Income. Self-employment income, which is intended to meet the household's needs for only part of the year, is averaged over the period of time the income is intended to cover. For example, self- employed vendors who work only in the summer and supplement their income from other sources during the balance of the year have their self-employment income prorated over the summer months rather than 12 months.

D. New Business. If a household's self-employment enterprise has been in existence for less than a year, the income from that self-employment enterprise is prorated over the period of time the business has been in operation.

Example 1: The individual reports they started a babysitting service on November 1, 2025. They applied for SNAP on January 1, 2026. They charge customers $125.00 per week; the individual has records to verify two months of payments, November and December. Enter the income dates as November 1, 2025, through December 31, 2025, on the first self-employment screen. If the individual states November and December income is not representative of the household's ongoing self-employment income, use the customer's written statement and available records to determine the best estimate of the monthly income.

Example 2: The individual applies on December 1st for SNAP and has only one month of income verification. Determine the average monthly income by using the individual's written statement. In this situation, the individual stated they made $200 in November, and that is what they anticipate making each month. Enter the income dates as November 1st through November 30th on the first self-employment screen.

E. End of Self-Employment Activity:

When an individual’s self-employment activity has ended, ask them to provide a written statement detailing: