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VIRGINIA DEPARTMENT

OF SOCIAL SERVICES ENERGY ASSISTANCE 11/13 VOLUME X, CHAPTER C, PAGE 7 6) Other self-employment income Verify the individual’s gross income from self-employment bookkeeping records or Agriculture Stabilization and Conservation Service (ASCS) records, tax return or other appropriate information. Determine profit by subtracting business expenses or the cost of production from the gross income. Business expenses do not include: • payments on the principal of the purchase price of and loans for capital assets such as, real property, equipment, machinery and other goods of a durable nature; • the principal and interest on loans for capital improvement of real property; • net losses from previous periods; • federal, state, and local taxes; • money set aside for retirement purposes; • personal expenses, entertainment expenses, and personal transportation; or • depreciation on equipment, machinery, or other capital investments necessary to the self-employment enterprise.

c) Unearned income includes all other income received by the household that is not received in exchange for labor, services, or produce. Some examples of unearned income are: Social Security benefits, alimony and child support, cash contributions, lottery winnings, retirement benefits, and unemployment compensation.

Social Security and other benefits will be verified by an award letter, a benefit check, the SDX (State Data Exchange), the Bendex in MMIS (Medicaid Management Information System), SVES (State Verification Exchange System), and SPIDeR (Systems Partnering in a Demographic Repository).

Statutory income received by a designated payee and disbursed to a nonhousehold member in its entirety or the mandatory portion thereof is not counted as income in the payee's household. Statutory income is defined as income, which has been authorized to an individual by a legislative enactment, such as Social Security and Veteran's benefits.

Other cash income will be verified by documents in the applicant's possession or by a statement from the person or agency making the contribution.

TRANSMITTAL #13-1