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• The value of stocks or dividends someone held as a shareholder is treated as a resource. Resources are not considered for CE and ECE households. • In certain situations, a client might submit a Schedule C and a 1040. This usually happens when a member of an LLC did not pay themselves wages but took disbursements/dividends of the business’s profit. This income can be located on line 3 of the 1040 and should be annualized. It is important during the interview to determine how the applicant is paying themselves.

EARNED VS. UNEARNED: Self-employment income is considered earned income (entered in CHIMES as Self- Employment). The income is considered unearned income if any of the following occur: 1. Rental income and rental partnership income, and the individual is not actively participating in the business at least 20 hours per week (SNAP 501-1); 2. Contract for deed income (SNAP 501-1); or 3. In some instances, boarder income (SNAP 201-4). RESOURCES: Property essential to self-employment is excluded as a resource. Possible exclusions of some resources are: 1. Property Essential for Self-employment (SNAP 402-1). 2. Income Producing Property (SNAP 402-1); and, 3. Business Checking Accounts (SNAP 402-1). NOTE: Money in a business checking account is a countable resource, but the self- employment funds prorated as income are excluded as a resource. The self- employment funds prorated as income retain their exclusion for the time they are prorated as income even if the funds are commingled. INCOME EXCLUSIONS: The following are income exclusions: 1. Federal gasoline tax credit; 2. State gas tax; 3. Disaster payments (SNAP 501-1); 4. Crop insurance payments; and, NOTE: If a Federal Insurance Corporation Payment or a private insurance payment is paid in a lump sum, it is excluded as income and counted as a resource. If the payment