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VIRGINIA DEPARTMENT OF SOCIAL SERVICES SPECIAL INCOME DETERMINATIONS

10/24 VOLUME V, PART XII, PAGE 3

3. Determining Monthly Income from Self-Employment (7CFR 273.11(a)(2))

a. For the period over which self-employment income is determined, the BPS must:

1) Add all gross self-employment income, including capital gains, for the period of time over which income is determined.

2) Subtract the cost of producing the self-employment income (See Part XII.A.5.)

3) Divide the remaining self-employment income by the number of months over which the income will be averaged.

b. When self-employment income is not averaged but is calculated on an anticipated basis, the BPS must:

1) Determine any capital gains the household anticipates receiving during the period over which the income is averaged which is likely to be the certification period.

2) Divide the amount by 12 (use this amount in successive certification periods during the next 12 months unless the anticipated amount of capital gains changes. If this should occur, a new average monthly amount must be calculated.)

3) Add anticipated monthly amount of capital gains to anticipated monthly self- employment income.

4) Subtract the cost of producing the self-employment income. The cost of producing the self-employment income will be calculated by anticipating the monthly allowable costs of producing the income.

If obtaining verification of the cost of doing business will delay the household's certification, the BPS must advise the household that the household's eligibility and benefit level may be determined without providing a deduction for these costs. If these costs or a portion of them cannot be verified within 30 days of the date of application, the BPS must determine the household's eligibility and benefit level without providing a deduction for the unverified portion. The household must be given at least 10 days to provide the verification. For initial applications and reapplications, if the household would be ineligible unless these unverified costs are allowed, the household will have an additional 30 days to take the required action. Action must be taken on recertification applications as allowed by the verification time frames described in Part IV.C.4.

One or more payments to farmers from the Disaster Assistance Act of 1988 must be counted as earned income. These payments, made to farmers who are adversely affected by a drought, are given for crop losses or to buy feed grain. This income is considered a replacement for income lost because of a drought, and for self-employed farmers, the

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