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West Virginia Income Maintenance Manual Chapter 4

West Virginia Income Maintenance Manual Page 224 Chapter 4 Income

Step 6: Compare the result of Step 4 to the amount in Step 5. If the net countable monthly income is less than or equal to the appropriate MNIL, the AG is eligible without a spenddown. If it is in excess of the appropriate MNIL, the AG must meet a spenddown. See Spenddown in Section 4.16.4.J below. 4.16.4 SPECIAL SITUATIONS 4.16.4.A Income from Self-Employment When the AG member receives self-employment income, the instructions below must be used to arrive at the gross profit, which is used to calculate countable income. This is determined by subtracting allowable business expenses from the gross income. 4.16.4.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 is determined, the instructions below are used to determine how the income is counted. ➢ Persons Receiving Regular Income For persons who receive income on a more or less regular schedule (weekly, monthly, etc.)—or who 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—the income is converted to a monthly amount according to item A above. 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 receive 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