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Division/Section Family Support Chapter No./Name 4 – Economic Stability (ES) Part No./Name B – Eligibility Factors Section No./Name B-600-FITAP-SNAP Income Document No./Name B-620-FITAP Types of Income Effective Date May 1, 2023

18 of 28 ALLOWABLE DEDUCTIONS MAY INCLUDE COSTS OF:

● ADVERTISING, ● LABOR, ● STOCK, ● RAW MATERIALS, ● SEED AND FERTILIZER, ● RENT, ● UTILITIES, ● REPAIRS THAT MAINTAIN THE INCOME-BEARING LEVEL OF THE PROPERTY, ● SUPPLIES, ● FUEL, ● LINEN SERVICE, ● INSURANCE PREMIUMS, ● PRINCIPAL, INTEREST AND TAXES ON INCOME-PRODUCING PROPERTY, ● EQUIPMENT, ● MACHINERY, AND ● OTHER DURABLE GOODS.

NON-ALLOWABLE DEDUCTIONS ARE:

● NET LOSS WHICH OCCURRED IN A PREVIOUS PERIOD; ● PERSONAL WORK-RELATED EXPENSES, SUCH AS CHILD CARE, FEDERAL, STATE AND LOCAL INCOME TAXES, RETIREMENT CONTRIBUTION, AND TRAVEL TO AND FROM THE PLACE OF BUSINESS; ● DEPRECIATION; AND ● AMOUNT THAT EXCEEDS PAYMENT RECEIVED FROM A BOARDER FOR LODGING AND MEALS.

DO NOT DEDUCT A LOSS FROM SELF-EMPLOYMENT FROM OTHER HOUSEHOLD INCOME.

IF THE SELF-EMPLOYMENT BUSINESS IS CONDUCTED IN THE APPLICANT'S HOME, CONSIDER THE COST OF THE HOME (RENT, MORTGAGE, UTILITIES) AS SHELTER COSTS, NOT BUSINESS EXPENSES, UNLESS THESE COSTS CAN BE IDENTIFIED SEPARATELY AS NECESSARY FOR THE BUSINESS.

3. DIVIDE THE REMAINDER BY THE NUMBER OF MONTHS OVER WHICH THE INCOME WILL BE AVERAGED TO DETERMINE MONTHLY PROFIT. THE MONTHLY PROFIT IS CONSIDERED THE GROSS EARNED INCOME FROM SELF-EMPLOYMENT.

4. EARNINGS FROM SELF-EMPLOYMENT ARE SUBJECT TO THE SAME EARNED INCOME DEDUCTIONS AND EXEMPTIONS THAT ARE APPLIED TO OTHER EARNED INCOME. THESE DEDUCTIONS AND EXEMPTIONS ARE APPLIED TO THE PROFIT, WHICH IS THAT