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b. Business accounting records or statements from an outside accountant.

c. Ledger books or bookkeeping records, including those maintained by the a/b or an employee, either paper or in software programs such as Quicken.

d. Information from banks, Production Credit Associations, farm agents, suppliers, purchasers or customers of the business.

e. Signed allegation of self-employment if no other evidence can be obtained and the a/b has not been informed of the requirement to keep business records. Give the a/b the DHB-5043, Verification Form for Self- Employment Income and Expenses, and explain to a/b how to use the form. At the next application or review the a/b will be required to provide self-employment income records in order for eligibility to be established.

2. Base Period for Self-Employment Income – Applications and Recertification’s

The base period is the twelve months prior to the month of application or review. (Refer to a. above for using prior year tax return for base period) If a/b or financially responsible person has been self-employed less than twelve months, use income from all of the months since self-employment began. 3. Base Period for Self-Employment Income -Retroactive Medicaid Always use monthly income computed from the base period (not actual income) for a/b or financially responsible person who has self-employment income when determining eligibility for retroactive Medicaid.

4. Base Period for Operational Expenses

a. Verify operational expenses for the previous calendar year if using federal tax returns, or quarterly tax statements for base period.

b. Verify operational expenses for the twelve months or number of months individual has been self-employed prior to the application or recertification interview (same months as used for income base period).

c. Convert operational expenses to a monthly amount.

5. Allowable Operational Expenses

Only deduct operational expenses which have been verified as paid and business related.