Self-employment income which represents an individual's annual income, but which is received in a short period of time is averaged over a 12 month period.
For example: If self-employment income received by a farmer represents the farmer's annual support, the income will be averaged over a 12 month period. The farmer's self-employment income will be annualized even if the household receives income from other sources in addition to self-employment.
On a Monthly Basis
Self-employment income which is received on a monthly basis, but which represents a household's annual support will normally be averaged over a 12 month period. If the averaged amount does not accurately reflect the household's actual monthly circumstances due to a substantial Increase or decrease in business, see below.
Intended to Meet the Household's Needs For Only Part of the Year Self-employment income which is intended to meet the household's needs for only a portion of the year will be averaged over the period of time the income is intended to cover.
Example:Vendors who work only in the summer and supplement their income from other sources during the balance of the year will have their self-employment income averaged over the summer months rather than a 12 month period.