WAG 13-02-03-a

Compute monthly net income from self-employment as follows:

  • If self-employment income is received less often than monthly, divide the annual net self-employment income by 12 months. Annualize this type of self-employment income even if the SNAP unit receives other income, as long as the self-employment income is intended to support the unit on an annual basis.

    If a unit's annualized self-employment income does not reflect actual circumstances due to substantial increases or decreases in business, recompute the income by using anticipated income and expenses.

    If the unit's self-employment business has been in existence for less than a year and income is received less often than monthly, average the income over the period of time that the business has been in operation. Project the monthly income amount for the coming year. If a reasonable projection cannot be made, assign a one or 2-month approval period until income can be accurately projected. 

  • If self-employment income is received on a monthly or daily basis, use actual income and cost of doing business. See PM 08-04-01-c if the income is farm income.
  • revised textWhen the only source of self-employment earnings is received weekly or every other week, convert to a monthly amount to budget, see PM 13-02-04. Convert expenses to a monthly amount when the expense is paid weekly or every other week.