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West Virginia Income Maintenance Manual Chapter 4

West Virginia Income Maintenance Manual Page 127 Chapter 4 Income

4.5.4 SPECIAL SITUATIONS 4.5.4.A Income from Self-Employment When an AG member or a disqualified individual(s) receives income from self-employment, the instructions below must be used to arrive at the gross profit that is used to calculate countable income. This is determined by subtracting allowable business expenses from the gross income. 4.5.4.A.1 Determining Gross Income The method used to determine monthly gross income from self-employment varies with the nature of the enterprise. It is necessary to determine which of the following types of self- employment applies to the client's situation. Once the pattern of self-employment has been determined, the instructions below are used to determine how the income is counted. ➢ Person Receiving Regular Income Persons receiving regular income are persons who receive income as profit on a more or less regular schedule (weekly, monthly, etc.), or receive a specific amount from the business each week or month and/or receive the balance of profit from the enterprise at the end of the business year. This income is converted to a monthly amount, according to Section 4.5.1. Business expenses may be computed on a monthly basis or prorated over a 12-month period, at the client's option. ➢ Persons Receiving Irregular Income Many persons derive income from short-term seasonal self-employment. This seasonal enterprise may be the major source of income for the year, or only for the period of time the person is actually engaged in this enterprise, with other sources of income being available during the remainder of the year. Persons who are seasonally self-employed include vendors of seasonal commodities (produce, Christmas trees, etc.), or other seasonal farmers.