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FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

19 Section 315 Change #01-2022 January 11, 2022 Additional verification of deductions is not required if the previous year’s tax records are used. a. If last year’s tax records are not available, request business income and expense records for the previous 12 months. b. If the business has not been in operation for 12 months, request income and expense records for the period of time the business has operated. 2. If these records are not representative due to an increase or decrease in business, average, and anticipate income for the certification period based on the most accurate information available. Document why the records were not representative and how the determination of countable income was made. 3. When first working with a household applying for FNS, if the previous year’s tax records or business records are not available, the county department can anticipate income and expenses based on the best available information from the self-employed individual. Remember, deductions from self-employment income must be allowable (reasonable to the cost of doing business). a. If tax records are not available, receipts of expenses must be provided. b. Business records must include mileage as it occurs and receipts to ensure that the deduction does not exceed the federal mileage rate for income tax purposes. c. To determine which deductions may be allowed, see 315.28. D. Allowable Costs of Doing Business. 4. If records were not available at this first contact, the county department should inform the household that the household is responsible for keeping adequate records and receipts to provide future verification of income and expenses. C. Budgeting of Self-employment 1. If the business has been in existence at least one year and the household states this is representative: a. Obtain income and expense verification for the previous year. b. Subtract the allowable and reasonable costs of producing the income. See 315.28 D. for a listing of these deductions.