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TANF POLICY MANUAL

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5. Reinstatement Procedures The ES Worker will take the following actions:

A. Contact CSSD Financial Services to determine if a child support payment was issued. B. If the child support payment was not issued, review last application with the individual to ensure all information is current and correct. C. Reinstate case on CHIP.

CAUTION: If change in income occurs, enter new/changed income on prospective screens and evaluate for continued eligibility.

8.9 Self-Employment Earned income from self-employment is the total profit from a business enterprise as calculated by subtracting the cost of doing business from gross income receipts. 1. Income Received Less Often than Monthly Self-employment income received less often than monthly is annualized and averaged over 12 months. Individuals receiving self-employment income from a farm operation but who incur irregular expenses to produce such income have the option of annualizing these expenses.

NOTE: 1. No change in actual circumstances: Use last year's tax return or other source of verification and annualize to determine anticipated amount of income to be counted.

NOTE: 2. Substantial increase/decrease in business: Use earnings from four weeks prior to application amount of income to be counted.

2. Income Intended to Cover Less than One Year Contracted or self-employment income intended as support for periods less than a year must be prorated over the period the income is intended to cover provided the income from the contract is not received on an hourly or piecework basis.

3. Capital Gains Any capital gains income derived from the sale of raw material or machinery used by the self- employment enterprise is calculated by counting the amount of the capital gains, minus depreciation, as income. Add capital gains income to other self-employment income (averaged or anticipated).

4. New Business – Less than a Year Average the income received from a business enterprise that has been in existence less than a year over the period of time the business has been in operation.

5. Budgeting Net Income/Self-Employment To arrive at the net income to be budgeted, the ES Worker must consider any cost of producing the self-employment income by the BG.

6. Allowable Self-Employment Costs The following list details allowable costs but is not limited to: