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1. Farm income; and, 2. Self-employment income received less often than monthly (e.g., income received quarterly, bi-monthly, annually, etc.). When self-employment income is annualized, the expenses must also be annualized. Expenses are counted when paid not when billed. If the self-employment income is annualized, income tax forms (when available) should be used to determine income. The most current tax forms are used unless there is a substantial change in business or income. Income must be annualized whether tax forms reflect current income and whether they are available. Other documentation must be used to determine annualized income. Tax forms may not always be available and cannot be required of SNAP applicants. If tax forms aren’t used as verifications, eligibility staff need to request other types of verifications and determine what type of income is being received based on the definitions of earned, unearned, and self-employment income. Other documentation examples are profit/loss statements prepared by the business, business account bank statements, or HCS 542 Self-Employment Record. 'Substantial increase or decrease in business' may include: 1. Termination or starting a new self-employment enterprise such as changing from a grain and cattle operation to a cattle operation. 2. Significant increase or reduction of operation such as adding or reducing a quarter of crop land or significantly increasing or decreasing a dairy or beef operation; and, 3. Natural disasters like hail or drought. Normal year-to-year fluctuating market prices are not considered to be substantial increases or decreases. NEW BUSINESS: If a new business has income, it is averaged using the income and expenses from the months the business has been in operation if the household anticipates the same for the next prospectively budgeted period. When the business has reached 12 months either at the Simplified Report or recertification, the income must be annualized if the household anticipates the same for the next prospectively budgeted period. If there is no reliable history of income or expenses to average, the eligibility staff member must negotiate a projection of the anticipated monthly income and expenses with the household. RENTAL INCOME: Depending on how active an individual is in managing rental property, the income is considered earned self-employment or unearned income. The cost of doing business is deducted from the gross income to determine net countable income for benefit calculation regardless of whether it is earned self-employment or unearned income.