Page 17

(MRG)

UPDATED: JANUARY 2012

115

INCOME EARNED

SELF-EMPLOYMENT OR SMALL BUSINESS INCOME

Procedure to Determine Net Profit

Income Tax Return

Business Organization Documentation

Single Owner Business/Farm

tax return including Schedule C or C-EZ or Schedule F (farm) or Financial Status Form (farm or business) DOH- 4469

Partnership tax return including Schedule E or F (farm) or Form 1065 and Schedule K-1 and W-2 if applicable or partnership agreement or Form 1065, Partnership Return or Schedule K-1 (1065) or Financial Status Form (farm or business) DOH- 4469

S-corporation Tax return (Form 1120S) and Schedule K-1 and W-2 if applicable, or Financial Status Form (farm or business) DOH- 4469

Take net profit from appropriate lines of schedules, and:

For LIF, Medically Needy (ADC-Related) and S/CC A/Rs, add back any depreciation, depletion, amortization or 179 expenses, deducted; or

For SSI-related A/Rs, because depreciation, depletion, amortization, 179 expenses are allowed, use net profit as gross income.

NOTE: One-half of self-employment tax as listed under Adjustments to Income on Form 1040, is an allowable deduction for all categories.