7518 Self-Employment Income

Self-employment income is annualized when the income from the enterprise is received in a short period of time but represents a household's annual support. For example, a farmer who raises cotton and soy beans receives all his annual income within the period of a few months.

income in the month of receipt. At application, this will require the calculation of two budgets - one which includes the income and another which does not. See FSC 14323 for instructions on authorizing variable allotments.

To ensure that this type of income is counted in the next month of receipt, the period of certification must be assigned to expire the month before the income is to be received ~ the "Review for Change" fields on the EMS-233 must be completed.

Self-employment income received throughout the year Is normally anticipated by determining the total annual income from the previous year and averaging this Income over the upcoming year. If the household has available its income tax return for the previous year, it is recommended that the household's annual income be based upon the self-employment income and expenses declared on the tax return. For example, a man owns a log truck. He hauls logs throughout the year whenever work is available and/or the weather permits. His earnings for the previous year may be averaged to anticipate his earnings for the current year.

See FSC 5600 - 5650 for complete instructions on calculating income from a self employment enterprise.