Current through August, 2024
The procedures for arriving at the monthly self-employment
income are as follows:
(a) For the
period of time the income is determined to cover:
(1) Add all gross self-employment income
including capital gains;
(2)
Exclude the cost of producing the self-employment income; and
(3) Divide the self-employment income by the
number of months over which the income will be averaged.
(b) For households whose self-employment
income is not averaged but is calculated on an anticipated basis, the branch
shall:
(1) Add any capital gains the
household anticipates receiving in the next twelve months starting with the
date the application is filed and dividing this amount by twelve;
(2) Use the average monthly capital gains
figure in successive certification periods during the next twelve months,
except that a new average monthly amount shall be calculated over the
twelve-month period if the anticipated amount of capital gains changes;
and
(3) Then:
(A) Add the anticipated monthly amount of
capital gains to the anticipated monthly self-employment income;
(B) Calculate the cost of producing the
self-employment income by anticipating monthly allowable costs of producing;
and
(C) Subtract the cost of
producing the self-employment income from the self-employment income.
(c) The monthly net
self-employment earned income, less any farm self-employment losses, will be
added to any other earned income received by the household. The total monthly
earned income, less the earned income deduction, will then be added to all
monthly unearned income received by the household.
(d) Farm self-employment losses will be
offset against other countable household income. To be considered a
self-employed farmer, the farmer must receive or anticipate receiving annual
gross income of $1,000 or-more from the farming enterprise. Farming losses will
be calculated as follows:
(1) Farming losses
occur when the cost of producing the income exceeds the gross income. These
losses will be averaged or anticipated over the year in the same manner as farm
self-employment income to determine monthly losses.
(2) The monthly losses will be subtracted
from other countable household income for both the gross income determination
and the budget computation.
(3)
When there is other self-employment income in the household, the farming losses
will be subtracted from the net self-employment income, not from the total
household income. If there are losses remaining after this computation, the
remainder will be subtracted from the total of other household
income.
