Page 62

Child Care Scholarship Policy Manual 62

Some self-employed applicants may submit an IRS form 1120-S if they are part of an S Corporation or a K1 partnership which allows income, deductions and credits to bypass corporate level taxation and flow directly to the shareholder. For income determination, the line indicating ordinary business income should be used.

If the spouse of the self-employed parent is working for the company, pay stubs are required as proof of employment. A statement from the self-employed spouse is not acceptable verification of employment for the other parent. If an IRS 1040 can be provided that shows the income from the schedule C for the self-employed parent as well as separate income from the other parent, the tax documents may be used.

If the applicants cannot provide proof of separate income, the application will be Denied as both parents must be working, in school or in training. The burden of proof is on the client. UBER, LYFT, INSTACART, S P A R K and taxi drivers, they are considered independent contractors and therefore are considered self-employed. If the UBER, LYFT, INSTACART, or other similar types of work (any independent contractor, social media influencer, etc) applicant has been in the job for over a year, a Schedule C, profit loss statement, is the only acceptable method of verification. If employed less than a year, the printout of active time and actual working time along with their first and last name from their account/profile page with the gross pay and any relevant tips should be submitted.

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Page 62

Official source

Child Care Scholarship Policy Manual 62

Some self-employed applicants may submit an IRS form 1120-S if they are part of an S Corporation or a K1 partnership which allows income, deductions and credits to bypass corporate level taxation and flow directly to the shareholder. For income determination, the line indicating ordinary business income should be used.

If the spouse of the self-employed parent is working for the company, pay stubs are required as proof of employment. A statement from the self-employed spouse is not acceptable verification of employment for the other parent. If an IRS 1040 can be provided that shows the income from the schedule C for the self-employed parent as well as separate income from the other parent, the tax documents may be used.

If the applicants cannot provide proof of separate income, the application will be Denied as both parents must be working, in school or in training. The burden of proof is on the client. UBER, LYFT, INSTACART, S P A R K and taxi drivers, they are considered independent contractors and therefore are considered self-employed. If the UBER, LYFT, INSTACART, or other similar types of work (any independent contractor, social media influencer, etc) applicant has been in the job for over a year, a Schedule C, profit loss statement, is the only acceptable method of verification. If employed less than a year, the printout of active time and actual working time along with their first and last name from their account/profile page with the gross pay and any relevant tips should be submitted.