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SNAP 503-1 INCOME Self-Employment Income

Supersedes: SNAP 503-1 (04/11/2024) Reference: 7 CFR 273.10 and 7 CFR 273.11; ARM 2.4.113 Overview: Net earnings from self-employment must be counted when determining eligibility for the Supplemental Nutrition Assistance Program (SNAP). 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 as long as 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 their 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.; and, 4. They sometimes file self-employment tax forms (Schedule F, C, C-EZ, SE, Form 1065, etc.). SELF-EMPLOYMENT STRUCTURES:

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Official source

SNAP 503-1 INCOME Self-Employment Income

Supersedes: SNAP 503-1 (04/11/2024) Reference: 7 CFR 273.10 and 7 CFR 273.11; ARM 2.4.113 Overview: Net earnings from self-employment must be counted when determining eligibility for the Supplemental Nutrition Assistance Program (SNAP). 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 as long as 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 their 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.; and, 4. They sometimes file self-employment tax forms (Schedule F, C, C-EZ, SE, Form 1065, etc.). SELF-EMPLOYMENT STRUCTURES: