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COMBINED MANUAL

ISSUE DATE 11/2021

SELF-EMPLOYMENT, DETERMINE COUNTABLE MONTHLY INCOME – SNAP

0017.15.33.05

MFIP, DWP, MSA. GA, GRH: No provisions.

SNAP: This section is to be used after review of 0017.15.33 (Self-Employment Income).

For specific types of self-employment businesses that must follow special provisions, see: 0017.15.33.24

Self-Employment Income From Farming.

0017.15.33.27

Self-Employment Income From Roomer/Boarder.

0017.15.33.30

Self-Employment Income From Rental Property.

0017.15.54 Capital Gains and Losses as Income.

The agency must determine self-employment using the method the client chooses for each self-employment business. If business taxes for the most recent tax year were filed within the last 12 months, as of the filing deadline, the client can choose either the taxable method or the 50% method. If a client has not filed business taxes within the past 12 months, the client must use the 50% method. If the income and expenses on the business tax forms from the most recent tax year are not reflective of what the client reasonably anticipates for income in the certification period, the client must use the 50% method. The most recent tax year is defined as taxes filed within the last 12 months as of the tax filing deadline. Document the option the applicant or participant has chosen, all calculations and forms used in CASE/NOTES.

Self-Employment situations that have a farm loss DO NOT have the choice of the 50% of gross earnings or the taxable method to calculate Self-Employment income for any unit member’s self-employment business. See 0017.15.33.24 (Self-Employment Income from Farming) and the Self-Employment Guide (PDF).

Compute monthly self-employment income by averaging the income and expenses, regardless of whether the household receives the income monthly or less often than monthly.

Do separate calculations for each self-employment business the unit has. Record them separately.

● 50% of gross earnings from self-employment:

- Business income as determined by business records or self-employment forms. This method is based on using current income, received 30 days prior to the date of application, to calculate self-employment income. Current income is an indicator of the gross business receipts that will be available during the next 6-month period. When gross business receipts fluctuate to the extent that the preceding 30 days is not an accurate indication of anticipated gross business receipts, use a reasonable period of time and gross business receipts (for example, the last 3 months) to determine current income. A longer or shorter period of time can be used if necessary.

- Review monthly gross business earnings. Gross earnings are defined as earned income before taxes and deductions.

- Subtract 50% from the monthly gross income amount to use as business expenses.

See TEMP Manual TE02.08.192 (How to Code STAT/BUSI for SNAP Cases).

OR

● Taxable Income method:

- Use business income as determined from Internal Revenue Service (IRS) tax forms that have been filed with the IRS within the last 12 months for the most recent tax year. This method is based on using an annual average to calculate self- employment income.

- Review gross business income using complete business tax returns, forms and schedules. See 0010.18.09 (Verifying Self-