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MS 5340

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Volume 2 - Supplemental Nutrition Assistance Program (SNAP) MS 5340 – R. 10/1/15 – OMTL – 491 Budgeting – Farm Income

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

If the prorated income as determined below does not accurately reflect the household's actual circumstances because the household has experienced a substantial increase or decrease in income due to unusual seasonal changes or other changes, base the amount of the farm income on anticipated earnings that are representative of the ongoing situation.

A. Farm income, which represents all or a portion of the household's yearly income, is averaged over the 12-month calendar year it is received. The 12- month period begins with the month of January. To determine the amount of farm income, use the Schedule F from the most recent federal income tax return covering the 12-month calendar year period. If the household does not file a return, use the household's receipts and personal records to establish the annual income and deductions. Whenever records and receipts other than tax returns are used, document the reason the tax return was not used, and document in detail the records and receipts that were used to determine countable income.

If it is verified that the household received all of its income from the sale of crops in the current year rather than the past calendar year, count the income as though it were received in the same calendar year as the crop(s) were produced.

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

C. New Farm. If a household's farm enterprise has been in existence for less than a year, the income from that farm enterprise is prorated over the period of time the farm has been in operation and the monthly amount projected for the coming year. However, if the farm has been in operation for such a short time that there is insufficient information to make a reasonable projection, the household is certified for less than a year until the farm has been in operation long enough to base a longer projection.

D. Annually recurring Tobacco Settlement Agreement Payments. Count annually paid Tobacco Settlement payments as income as follows: