Page 44

44 | P a g e October 25 o Deployment to a combat zone can also be verified through orders issued to the person being deployed. Additional information on Combat Zones, or Military Leave and Earnings (LES) statements can be found in Appendix 5. • Any payment specifically excluded from income by directive of the federal government shall be excluded in determining income for LIHEAP eligibility. • Medically Needy – means an individual or family otherwise eligible for Medicaid assistance but whose income exceeds the benefit standard to be categorically eligible for Medicaid. A medically needy case may or may not have an incurred cost or spend down. o Incurred cost is the portion of a medically needy recipient’s income that exceeds the Medically Needy Income Standard for the size of the filing unit for Medicaid. If a Medically Needy person has an incurred cost during the three (3) months preceding the month of application, the incurred cost amount would be excluded as income for LIHEAP. o Proof of the medical incurred cost from Medicaid is required, prior to excluding the amount of the cost incurred from income. CHIMES EA can be used to verify medical incurred cost. • Special Needs Trusts • Supplemental Needs Trusts 3.16 Self-Employment Income DEFINITION OF SELF-EMPLOYMENT Self-employment is the act of engaging in a trade or business. A trade or business is generally an activity carried on for a livelihood or in good faith to make a profit. An individual does not have to make a profit to be in a trade or business if a profit motive exists. The individual may be a contractor, franchise holder, owner/operator, partner, etc. The individual must meet the following criteria to be considered self-employed: 1. They earn income directly from their business or trade not from wages or salary from an employer. 2. They are responsible for the payment of their entire Social Security and Federal withholding taxes. 3. They do not have an employee/employer relationship with another individual, and the services performed cannot be controlled by an employer such as setting the job schedule, etc. 4. They should file self-employment tax forms (Schedule F, C, C-EZ, SE, Form 1065, etc.). However, not all individuals file tax forms and some may file incorrectly.