Annualizing self-employment income.

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Annualizing self-employment income.

(1) Annualizing self-employment income.

(i)Self-employment income which represents a household's annual income shall be annualized over a 12-month period even if the income is received within only a short period of time during that 12 months.#

(i) Self-employment income which represents a household's annual income shall be annualized over a 12-month period even if the income is received within only a short period of time during that 12 months.

(ii)Self-employment income which is received on a monthly basis but which represents a household's annual support will normally be averaged over a 12-month period.#

(ii) Self-employment income which is received on a monthly basis but which represents a household's annual support will normally be averaged over a 12-month period. If, however, the averaged amount does not accurately reflect the household's actual monthly circumstances because the household has experienced a substantial increase or decrease in business, self-employment income will be calculated based on anticipated earnings. Self- employment income must not be calculated on the basis of prior income ( e.g., income tax returns) when the household has experienced an increase or decrease in business as determined by the local department.

(iii)Self-employment income which is intended to meet the household's needs for only part of the year shall be averaged over the period of time the income is intended to cover.#

(iii) Self-employment income which is intended to meet the household's needs for only part of the year shall be averaged over the period of time the income is intended to cover.

(iv)When a household's self-employment enterprise has been in existence for less than a year, the income from that self-employment enterprise shall be averaged over the period of time the business has been in operation.#

(iv) When a household's self-employment enterprise has been in existence for less than a year, the income from that self-employment enterprise shall be averaged over the period of time the business has been in operation. The monthly amount shall then be projected for the coming year. However, if the business has been in operation for such a short time that there is insufficient information to make a reasonable projection, the household shall be certified for less than a year. Such certification process shall continue until the business has been in operation long enough to permit a longer projection.

(v)Notwithstanding the provisions of subparagraphs (i) through (iv) of this paragraph, households subject to monthly reporting/retrospective budgeting which derive self-employment income from a farming operation and which incur irregular expen#

(v) Notwithstanding the provisions of subparagraphs (i) through (iv) of this paragraph, households subject to monthly reporting/retrospective budgeting which derive self-employment income from a farming operation and which incur irregular expenses to produce such income must have the option to annualize the allowable costs of producing self-employment income from farming when the self-employment farm income is annualized.

(vi)When the cost of producing self-employment income exceeds the income derived from self-employment as a farmer, such losses must be offset against any other countable income in the household.#

(vi) When the cost of producing self-employment income exceeds the income derived from self-employment as a farmer, such losses must be offset against any other countable income in the household. To be considered a self-employed farmer, the farmer must receive or anticipate receiving annual gross proceeds of $1,000 or more from the farming enterprise.