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Chapter 3: Household Income Rev. 8/2012 13 Other Self Employment Situations: a) New Self-Employment or Substantial change in Self- Employment If a household has self-employment income which has just started in the calendar year and would not be reflected on the most recent Tax Return OR the most recent Tax Return does not accurately reflect current circumstances due to a substantial change (ie, health problems, business is now a *Corporation or S Corp, etc) the client must be required to provide self-employment ledgers for the 3-month LIEAP report period verifying income and expenses for the period *except for Corporation or S Corp. Y b) Self-Employment That Has Ended If a client previously had self-employment and reports that it has ended, the client must provide a signed statement indicating the date the business was no longer in operation. If the business ended within the 3-month LIEAP report period, the client must provide self-employment ledgers for the months the business was in operation during the period. Y c) Ending One Type of Self- Employment and Starting Another If a client reports to have ended one type of self-employment and begun another type of self-employment within the 3- month reporting period, income for the new self-employment will be calculated in the same manner as (a) New Self- employment. If the previous self-employment ended within the 3-month reporting period, that income will be counted in the same manner as (b) Self-Employment That Has Ended. Y d) S-Corporation and Corporations Income Wages paid to the individual from the corporation are counted as earned income. The individual is not considered Self- Employed. Income Tax Return is required to determine it is an S-Corp by 1120S or a Corporation by 1120 exception *if the business has been incorporated and the current tax return does not reflect the change, documentation from the IRS must be obtained verifying the business is now a Corporation or S Corporation. Y e) Self-Employment all other Corporations and Partnership Income is the net profit/loss plus depreciation. For households with self-employment, eligibility must be determined based upon the household’s most recent Federal Income Tax Return. Forms 1065 US Partnership and K-1 are required to calculate income. Y

Income Paid to Protective Payee Some payments such as child support, SSI, etc., are made to protective payees. If the payment is intended for a LIEAP household member, it is countable when determining eligibility. See Example Below Examples of Protective Payee: A LIEAP household contains an individual who is eligible to receive SSI. However, that payment is actually sent to a protective payee who is NOT a member of that household. Since the SSI payment is intended for the individual, that income IS countable when determining income eligibility for that household even though it is not sent directly to the household.

Y