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• Normally self-employment income and expenses from the past year are counted for the current year. If the averaged amount does not accurately reflect the family s actual circumstances because the family has experienced a substantial increase or decrease in business, such as a change in the type of farm operation or the amount of land farmed, crop failure or a substantial change in market prices, etc., the self-employment income shall be calculated on anticipated earnings rather than the basis of prior income.

4105 Volume III | Chapter 4 MISSISSIPPI [INCOME: EARNED INCOME] Revised 11-01-11

Exceptions to Averaging Income 1. If an assistance unit's self-employment enterprise has been in existence for less than a year, the income from the self-employment enterprise shall be averaged over the period of time the business has been in operation, and the monthly amount projected for the coming year. However, if the business has been in operation for such a short time that there is insufficient data to make a reasonable projection, the assistance unit should be approved for up to 6 months until the business has been in operation long enough to determine anticipated income. 2. Self-employment income which is intended to meet the assistance unit's needs for only part of the year shall be averaged over the period of time the income is intended to cover. Selfemployed vendors, for example, who work only in the summer and supplement their income from other sources during the balance of the year shall have their self-employment income averaged over the summer months rather than a 12-month period. In an effort to determine the period of time for which self-employment income is intended to support an assistance unit, other factors, in addition to the client s own statement, would have to be examined and evaluated. Such factors would include, but would not be limited to, previous year's business and personal expenses, tax records, anticipated expenses for the current year, income received from other sources during the previous year, income expected to be received from other sources during the coming year, etc. Such factors, when compared with the income from seasonal self-employment, would provide a basis for making a determination as to how long the income is intended to support the assistance unit. For example, if the previous year's expenses were proportionate to the income from self-employment, it could be an indication that the income would sustain the assistance unit for a year; therefore, the income could be averaged. If expenses were not proportionate with the income, it could be assumed that such income could not sustain the family for a year; therefore, income would be averaged over the period of time for which such income is received. Determining Net Self-employment Income