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1014 Chapter 7:Worker guides • Section 1: Multiple program worker guides (07/2026) SNAP, OSIPM, or MSPs. • Gross self-employment income (including microenterprise) is the gross sales or receipts (before costs). Self-employment income is counted as earned income: the differences are in how allowable costs are treated. SNAP Self-employed individuals who have no costs have their gross self-employment income coded as SEN. That income is given the same 20 percent deduction as all other earned income. Most self-employed individuals do have allowable costs. Their income is coded as SEC and is given a 50 percent deduction before the 20 percent earned income deduction is applied. TANF Self-employment is treated the same as other earned income and given a 50 percent disregard by ONE. ERDC Self-employment income is counted as earned income. MSP Self-employment income is counted as earned income. Gross self-employment income (including microenterprise) is the gross sales or receipts (before costs). All allowable costs are excluded from gross self-employment receipts or income (after general exclusions) to determine countable income, earned income deductions are taken to determine adjusted income, and then the adjusted income is compared to the adjusted income limit. OSIPM All the costs currently allowed by the IRS are allowed as exclusions for OSIPM and MSPs, which means all the expenses listed on the IRS Schedule C (this includes the “Other expenses” category). If the individual has filed a schedule C, then it’s easy to determine the allowable costs. But if the individual doesn’t or hasn’t filed taxes, he/she can claim similar expenses for anything related to the business. If the expenses are for both personal and business, for example a personal car or truck that’s also used for delivering a product, then the individual has to break out what portion is attributed to business use. The expenses listed below are examples of what can be allowed. Remember, because the IRS has an “Other expenses” category (which includes expenses not captured in the list below), this is not an exhaustive list. You may have to use your judgement when self-employed individuals who don’t file a Schedule C claim expenses that don’t appear on this list: • Car and truck expenses. • Commissions and fees. • Contract labor. • Depletion. • Depreciation. • Employee benefit programs. • Insurance, other than health. • Mortgage interest. • Legal and professional services. • Office expenses. • Pension and profit-sharing plans. • Rent or lease of vehicles, machinery, equipment, and other business property.