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1013 Chapter 7:Worker guides • Section 1: Multiple program worker guides (07/2026) If a cost paid by the company can reasonably be explained as a business vs a personal cost, simply narrate; do not pursue further verification on the cost (e.g., a vehicle registered on WVIR under the business name). For SNAP, count personal bills paid by the business (such as life insurance for the owner/employee) as earned income. If the individual refuses to answer questions and is reporting income below the level needed to meet their reported expenses, deny the application for failure to supply requested information/verification. Note: Always review the case notes – at least back to the last eligibility determination – to help get a clear picture of the situation. This is critical when the amount and source of income is in question. In the rare case that you suspect fraud, follow local procedures for referring the case to Investigations. Reading tax forms If a business has been in existence at least one full calendar year, tax forms can be a great help with calculating self-employment income. If not representative, tax forms can still be used as a base to anticipate income for prospective budgeting. Always request the entire federal tax filing and start with page 1 of the 1040 (U.S. Individual Income Tax Return). Not every form will be needed, but it is much better to make just one, comprehensive pending request. Use the following table as your guide to which forms, sections and lines to reference when calculating business income. Note: Local areas should consider whether they want to specialize work with tax forms. Tax forms, including instructions that help identify entries, are available online at www.irs.gov. Policy analysts in Central Office are also available to help staff cases. Verifying self-employment costs The Self-Employment Income (DHS 859B) form may be used to help collect information about costs related to producing self-employment income. For SNAP and medical, the form cannot be accepted as verification of either income or costs for self-employed individuals. Verify self-employment costs as follows: SNAP Ask the individual what costs they have related to their self-employment. Narrate the individual’s statement about allowable costs to support use of the SEC 50 percent income exclusion. Do not verify unless questionable. TANF Does not apply for TANF. ERDC Verify costs only if questionable. MSP Verify all costs. OSIPM Verify all costs. Treatment of self-employment income For all programs: • Self-employment is defined the same, except that corporations cannot be considered self-employment for