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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
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Budgeting Self-Employment Income
ANNUALIZE OVER A 12 MONTH PERIOD SELF-EMPLOYMENT INCOME WHICH REPRESENTS A HOUSEHOLD'S ANNUAL INCOME EVEN IF IT IS RECEIVED IN A SHORTER PERIOD OF TIME.
AVERAGE OVER A 12 MONTH PERIOD SELF-EMPLOYMENT INCOME WHICH IS RECEIVED LESS OFTEN THAN MONTHLY BUT WHICH REPRESENTS A HOUSEHOLD'S ANNUAL SOURCE OF INCOME. IF THE AVERAGE AMOUNT DOES NOT ACCURATELY REFLECT THE HOUSEHOLD'S ANTICIPATED MONTHLY INCOME DUE TO A SUBSTANTIAL INCREASE OR DECREASE IN BUSINESS BASED ON A CHANGE IN CIRCUMSTANCES A SHORTER PERIOD OF TIME MAY BE USED. AVERAGE OVER THE PERIOD WHICH MOST ACCURATELY REFLECTS THE HOUSEHOLD’S ANTICIPATED CIRCUMSTANCES.
SELF-EMPLOYMENT INCOME WHICH IS RECEIVED ON A MONTHLY BASIS MUST BE BUDGETED AS RECEIVED AND NOT ANNUALIZED.
AVERAGE SELF-EMPLOYMENT INCOME WHICH IS INTENDED TO REPRESENT THE HOUSEHOLD'S INCOME FOR ONLY PART OF THE YEAR OVER THE PERIOD OF TIME IT IS INTENDED TO COVER.
A FIRST-YEAR FARMER WHO MANAGES ON LOANS OR ADVANCES MAY BE CERTIFIED FOR 12 MONTHS OR UNTIL THE END OF THE CROP HARVEST WITHOUT BUDGETING FARM INCOME.
Budgeting Procedures
1. TOTAL ALL GROSS SELF-EMPLOYMENT INCOME (INCLUDING CAPITAL GAINS) FOR THE PERIOD OF TIME OVER WHICH SELF-EMPLOYMENT WILL BE AVERAGED OR FOR THE MONTH IF RECEIVED MONTHLY.
CAPITAL GAIN IS THE FINANCIAL PROFIT FROM A SALE OR TRANSFER OF CAPITAL ASSETS (ACCUMULATED POSSESSIONS SUCH AS PRODUCTS, EQUIPMENT, OR OWNERSHIP OF A BUSINESS). COUNT THE FULL AMOUNT OF A CAPITAL GAIN.
WHEN CALCULATING SELF-EMPLOYMENT INCOME, ADD ANY CAPITAL GAINS THE HOUSEHOLD EXPECTS TO RECEIVE IN THE NEXT 12 MONTHS. USE THIS AVERAGED AMOUNT FOR EACH CERTIFICATION PERIOD WITHIN THE NEXT 12 MONTHS UNLESS THE AMOUNT CHANGED SUBSTANTIALLY AND A NEW AVERAGE IS COMPUTED.
DO NOT COUNT CROPS IN STORAGE AS INCOME UNTIL THEY ARE SOLD.
2. SUBTRACT ALLOWABLE DEDUCTIONS FOR THE COST OF PRODUCING THE INCOME.