10:87-7.3 Determining monthly income from self-employment

(a) For the period of time over which self-employment income is determined, the CSSA shall add all gross self-employment income (either actual or anticipated) and capital gains as specified in this subchapter, exclude the costs of producing the self-employment income, and divide the remaining amount of self-employment income by the number of months over which the income will be averaged. This amount is the monthly net self- employment income. The monthly net self-employment income shall be added to any other earned income received by the household to determine total monthly earned income. The total monthly earned income, less a 20 percent earned income deduction, shall then be added to all monthly unearned income received by the household. 1. If the cost of producing self-employment income exceeds the income derived from self-employment, as a farmer who receives or anticipates receiving annual gross proceeds of $ 1,000 or more from the farming enterprise, such losses shall be prorated and then offset against countable income to the household as follows: i. Offset farm self-employment losses first against other self-employment income; ii. Offset any remaining farm self-employment losses against the total amount of earned and unearned income after the earned income deduction has been applied. 2. If a CSSA determines that a household is eligible based on its monthly net income, the agency may elect to offer the household an option to determine the benefit level by using either the same net income which was used to determine eligibility, or by unevenly prorating the household's total net income over the period for which the household's self-employment income was averaged to more closely approximate the time when the income is actually received. If income is prorated, the net income assigned in any month cannot exceed the maximum monthly income eligibility standards for the household's size. History HISTORY: Amended by R.1989 d.121, effective February 21, 1989. See: 20 N.J.R. 2689(a), 21 N.J.R. 511(b). Added new (b) and recodified old (b) to (c). New Rule, R.2004 d.181, effective May 17, 2004. See: 36 N.J.R. 28(a), 36 N.J.R. 2425(a). Former N.J.A.C. 10:87-7.3, Annualizing self-employment income, repealed.