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S N A P M A N U A L

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For the period of time over which self-employment income is determined: (A) Add all gross self-employment income (either actual or anticipated) and capital gains

The following chart will help determine what must be used as income:

Business Structure

IRS Form Sole Proprietorship Schedule C Form 1040, Profit or Loss from Business, Line 3, or subtract Line 2 from Line 1 (if no amount is listed on Line 3). Exception to using Line 3 only: When there is other income on ine 6, add this income to the income on Line 3. Partnership

Form 1065, U.S. Return of Partnership Income, Line 1c (add Line 7 if an amount is listed), • prorate to the number of partners (if the partners share equally in the business) or • prorate using the percentage the client(s) owns in the business, See Schedule K-1 (Form 1065) Part II, Line J Corporations

Form 1120, U.S. Corporation Income Tax Return, Line 11; or Form 1120-S (see below) and (Schedule K-1(Form 1120-S) Part II, Line G (if applicable to determine the percentage of the business the client owns) Limited Liability Company (LLC)

Owners of an LLC are called members. Members may include individuals, corporations, other LLCs, and foreign entities. Also permitted are “single member” LLCs, those having only one owner.

If the only member of the LLC is an individual, the LLC income is reported on Form 1040, Schedule C (Profit or Loss From Business), Line 3, or subtract Line 2 from Line 1 (if no amount is listed on Line 3). Exception to using Line 3 only: When there is other income on Line 6, add this income to the income on Line 3.