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already received by the household and any anticipated income the household and the EABS are reasonably certain will be received during the month of eligibility determination. Use income received during the last month as an indicator of the income that is and will be available to the household in the month of eligibility determination unless that income does not accurately indicate changes in income that have occurred or are anticipated to occur.

There are several ways to project fluctuating earnings: • Year-to-date income provided on the most recent pay stub divided by the number of months applicable. • If applying for assistance with the same source of employment for the prior calendar year, 1099 forms or W-2’s can be used to prospect income. • Determine monthly gross income by calculating the total amount of income earned in the 12- month period preceding the date of the application and dividing the total amount by 12.

8.6 Calculating Income from Self-employment If a household member is self-employed, eligibility will be determined based on the most current information available. If the self-employment is continued from the previous year, the applicant must submit a copy of his/her most recent income tax return. Prospective income shall be based on the annualized figures reflected on the most recent income tax return when determining eligibility.

If the self-employment is new and not reflected on the previous income tax return, the applicant shall be required to submit business ledgers from prior months showing profits and expenses. Income will be prospected from the ledgers until an income tax return reflecting the self-employment is available. At least one full month of self-employment must be reflected on the ledger to prospect income. Only those expenses related directly toward the operation of the self-employment business shall be allowed as deductions. Personal expenses cannot be allowed as deductions.

Depreciation and depletion are not allowable expenses and must be added back into the net profit or loss. Depreciation expense reduces the taxable income of an entity but does not reduce the cash available to the business entity.

If multiple self-employment businesses exist for the same person, each business should be entered as its own gross receipt evidence. Self-employment showing a loss shall be counted as $0.00. A loss may not be deducted from other forms of income the household may have. Each business is considered separately and a loss from one business will not offset another.

Corporations and Partnerships. Particular attention should be paid to individual income tax returns showing income from corporations or partnerships. In order to accurately determine an individual’s income, a copy of the corporation’s income tax return must also be submitted. The corporation’s income tax return will reflect the applicant’s share of the business. The applicant’s share of the corporation’s net profit, loss, and depreciation shall be added into the applicant’s individual tax return figures.

Wages Paid. In some self-employment situations, the business proprietor may pay himself/herself a wage from the business. If the income tax return shows that wages were paid, a copy of the business’ W-2 forms should also be submitted with the application as the wages are considered countable if paid to the business proprietor or the proprietor’s spouse.

Capital Gains and Interest. Capital gains and interest shall be added into the total income prior to calculating the gross monthly income.