Monthly Computation Method
The following steps are used for the monthly computation method:
Determine the total monthly gross self-employment income.
Determine the total allowable expenses for each corresponding month.
Subtract the total allowable expenses from the total gross self-employment income for the corresponding month.
Look at the net monthly income and determine which months are representative of future earnings and project over the length of the certification period.
Note: If the frequency is known and consistent, the appropriate conversion factor should be used in Step 1 and Step 2.