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Subsidized Child Care Assistance Program Policy Manual Chapter 7. Family Definition and Determining Income Eligibility Revised 08/01/2024

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the product. Self-employment includes but is not limited to selling recyclables, babysitting, roomer/boarder income, rental income, farm income, cosmetologist, carpenter, and income earned by an individual working as a consultant or independent subcontractor, such as Door Dash, Instacart & Uber drivers. Independent subcontractors are considered self-employed as they are issued a 1099 if they have earned more than $600.00 in the year. Independent subcontractor applicants must be able to provide proof of steady, consistent work hours and wages earned to calculate income. Note: If Social Security and income taxes are being withheld by an employer, the individual is not self-employed. • If eligibility is being determined before that year's tax filing deadline, then use the previous year's tax returns if representative. • If eligibility is being determined after that year's tax filing deadline, then use the tax return for the most recent year if representative. • If the federal tax return for most recent year is not available, then use quarterly tax statements if representative. • If quarterly tax statements are not available, the child care worker must use: i. Business accounting records, bookkeeping records such as ledger books, or records maintained by the applicant. ii. Information from the verification forms for Self-Employment Income and Expenses (Attachment 2) to be completed by the applicant/recipient. Applicants/recipients can be liable for paying self-employment tax even if they receive social security benefits.