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EAP Policy Manual FFY24 Chapter 3 Program Eligibility Requirements Page 32 • Enter the number of months of self-employment income, based on the information provided in the application or by the applicant directly, in the ‘Months of self-employment income’ field. The default for this field is 12. • When information indicates there are multiple businesses reported on one IRS Form 1040 – Schedule 1, enter the default 12 months of self-employment. • eHEAT will automatically calculate the one month income equivalent. Household has multiple IRS Form 1040 and Schedule 1 forms If a household has multiple IRS Form 1040 and Schedule 1 forms that include self-employment income, use a separate Self-Employment Income (1040 – Schedule 1) Worksheet for each IRS Form 1040 – Schedule 1 submitted and total the results from all of the forms. (A loss from one IRS Form 1040 – Schedule 1 is not subtracted from another IRS Form 1040 – Schedule 1.) Household did not file an IRS Form 1040 for the year, the self-employment income or loss was not reported on the IRS Form 1040, or the household’s IRS Form 1040 is not available Use the Self-Employment Income Cash Accounting Worksheet: • When using this method, rather than itemizing and deducting expenses, EAP counts fifty percent of the household gross self-employment income for all applicants. • This form is sent to the household for completion. • The household enters the self-employment income received for each applicable month and the worksheet calculates the total under ‘Total Gross Income.’ • The Service Provider calculates the one month income equivalent using the following calculation: Total Gross Income ÷ number of months self-employed. Divide the result by 2 to determine the countable income. • Enter the resulting one month equivalent income into the Self Employment Cash Accounting field on the eHEAT ‘Household Income Info’ section. • Either the Primary Applicant or the self-employed household member must sign the Self- Employment Income Cash Accounting Worksheet. Household self-employment began during the one month eligibility period Use the Self-Employment Income Cash Accounting Worksheet to calculate the household’s countable one month income: • Divide the one month of gross income by 2 to determine the countable income. • Enter the countable income into the Self Employment Cash Accounting field in the eHEAT ‘Household Income Info’ section.