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VIRGINIA DEPARTMENT OF SOCIAL SERVICES SPECIAL INCOME DETERMINATIONS
10/25 VOLUME V, PART XII, PAGE 1
A. SELF-EMPLOYMENT INCOME
1. Definition
Self-employment income includes:
a. The total gross income from a self-employment enterprise. Self-employment income also includes the total gain from the sale of any capital goods or equipment related to the business.
b. Farm income. Income from farming will be that income derived from activities such as:
1) the production and sale of crops and livestock for food;
2) the raising of livestock to produce items such as eggs, wool, milk, etc.; and
3) the production and sale of tobacco, cotton and other non-food crops.
c. Payments from roomers and boarders.
d. Income from rental property. (See Part XI.C.2 and E.6.)
The BPS must assess the business structure of self-employment arrangements to determine if the business is incorporated and the number of business owners. Income from business arrangements that are not incorporated must be calculated as described in this chapter and divided over the number of business owners. Income from business arrangements that are incorporated must be handled as wages/salaries (Part XI.C.1), not self-employment income. Note that limited liability companies (LLC) are not incorporated so the income is considered as self- employment. See Part IX.C.3 for a discussion of business resource assessments for SNAP purposes.
2. Averaging of Self-Employment Income (7 CFR 273.11(a))
All self-employment income is calculated in the same manner described below, except income from boarders not residing in a commercial boarding house. Instructions for computing this type of income are described in Part XII.B.
a. Self-employment income, which represents a household's annual support, must be annualized over a 12-month period, even if the income is received in a shorter period. For example, income from a farmer's crop that represents the farmer's annual support must be averaged over a 12-month period, even though the income is received in a shorter time frame. In addition, self-employment income that represents a household's annual support must be annualized even if the household has income from other sources.
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