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1226 (07/2026) Chapter 8: Examples • Chapter 8: Examples Example 2: Ruby receives quarterly periodic retirement income payments of $1,015.25. Ruby’s monthly countable income would be calculated as follows: • $1015.25 is rounded to $1015.00. That amount is averaged over (or divided by) 3 months and the result is rounded to the nearest dollar: $1015/3 = $338.33 rounded to $338 countable income per month. Example 3: Mitch reports $1,000.50 in gross self-employment income, and a total of $300.25 in allowable costs. The $1,000.50 is rounded to $1,001.00, costs are rounded to $300.00. Total countable income after excluding costs is $701.00. Self-employment income Individual program example(s) Amy Jefferson applies for cash, medical, day care and food benefits for herself and Billy, her three-year-old son. Amy is a hairstylist. She pays $460 per month for a space at The Hair Biz. Her rental pays for her share of utilities, exclusive use of her chair, access to a sink, a supply of towels, her share of the receptionist’s salary and use of the laundry facilities. Amy sets her own hours, usually putting in 30-35 hours per week. She determines which services to offer, sets her own prices and is solely responsible for collecting the income from her work. Amy is determined to be self-employed. She provides a copy of the bookkeeping log that she is keeping for tax purposes. Amy’s budget month income of $1,800 is the same as her ongoing average of $1,800 per month. Her allowable costs for space rental and supplies total $670. Note: Amy’s tips are considered and coded as part of her self-employment income. SNAP Amy has allowable costs, so she is given the 50 percent self-employment income deduction. Because Amy was not self-employed last year, the worker anticipates her income at $1,800 per month, codes it as SEC and the computer deducts 50 percent. TANF Amy’s budget month income of $1,750 is over the countable income limit. She is over income for TANF. The 50 percent earned income deduction can be applied only after the applicant passes the countable income test. ERDC Amy has allowable costs of at least $1, and chooses to use her deductions for a lower copay. Amy’s gross self-employment income of $1,800-50 percent = $900. Amy’s child care hours are determined in ONE by selecting .5 costs in the ERDC Self Employment Deduction screen after running eligibility which divides her income after costs of $900 by the current minimum wage for the business location. $900 / $14 (minimum wage in Portland in 2021) = 64.3 hours rounded up to 65. Note: Compare the gross SLF amount to the ERDC income chart. The use of costs deductions are up to the individual. If more hours are needed, they may prefer to not use cost deductions. If a lower copay is needed, they may want to use the deductions.