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COMBINED MANUAL

ISSUE DATE 11/2021

SELF-EMPLOYMENT, DETERMINE COUNTABLE MONTHLY INCOME – SNAP

0017.15.33.05

Employment Income) for examples of business tax returns, forms and schedules. Divide the gross income by 12 (months) to find the monthly average income for the business.

-- For a new business in operation for less than 12 months, or a seasonal business, divide the gross income by the number of months the business was in operation.

- Review business expenses listed on the tax forms. The instructions for each tax form provide information on what expenses are allowable under current Internal Revenue Code. SNAP allows expenses that are also allowed by Internal Revenue Code unless specifically listed in 0017.15.33.15 (Self-Employment Expenses Not Allowed). Divide the expenses by 12 (months) to find the monthly average expense for the business.

- Subtract allowable business expenses from gross income. This may result in a positive number or a negative number. This is the business income allowable for SNAP.

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

Document the method the client chose and the calculations used in CASE/NOTEs.

NOTE: Units using the taxable income method AND operating more than 1 self-employment business may use the loss from 1 business to offset self-employment income from another business.

Changing Options:

Current program participants must continue to use the same method for each self-employment income source, unless they meet a changing option listed below. If the client applies for an additional program, they may choose to use either the 50% gross or taxable income method for that new program.

● Participants, who use the 50% of current self-employment income method, may choose the Taxable Income method at the next benefit month.

● Participants, who use the Taxable Income method, must continue to use this method until recertification.

● Participants must be given the option to change their method of self-employment income calculation at recertification.

For additional information, see the Self-Employment Guide.