Page 600
West Virginia Income Maintenance Manual Chapter 4
West Virginia Income Maintenance Manual Page 128 Chapter 4 Income
Cash crop and some seasonal farmers and other persons with similar irregular self-employment income receive their annual income from self-employment in a short period of time and budget their money to meet their living expenses for the next 12 months. Because the income is seasonal, it must be averaged over the period of time it is intended to cover, even if it is the major source of income for the year. However, if the averaged amount of past income does not accurately reflect the anticipated monthly circumstances because of a substantial increase or decrease in business, the income is calculated based on anticipated earnings. Business expenses may be computed on a monthly basis or prorated over a 12-month period, at the client's option. ➢ New Business AGs with a new business that has been in existence less than a year have their income and incurred business expenses averaged over the amount of time the business has been in operation. From this, the monthly amount is projected for the coming year. However, if the averaged amount of past income and/or expenses does not accurately reflect the anticipated monthly circumstances because of a substantial increase or decrease in business, the income and/or expenses is calculated based on anticipated earnings. Incurred business expenses are also averaged over the amount of time the business has been in operation. However, if the averaged amount of past expenses does not accurately reflect the anticipated monthly circumstances because of a substantial increase or decrease in business, the expenses are calculated based on anticipated costs. 4.5.4.A.2 Determining Gross Profit Gross profit from self-employment is the income remaining after deducting any identifiable costs of doing business from the gross income. ➢ Deductions Examples of allowable deductions are: • Employee labor costs, including wages paid to an AG member and any salary the client pays himself. When paid to an AG member, the income must be considered according to the provisions in Section 4.3.