NOTE: This calculation is automatically completed by AIS.
NOTE: Allow the client the option of choosing when an expense is claimed. The expense may not be claimed more than once.
Example: Mr. G is a self-employed painter. He had no earnings in February, but purchased a $75 supply of paint brushes. In March, he earned $500 and did not have any expenses for the month. Mr. G chooses to the claim the expense of $75 in March.
Example: Mr. P sends in his self-employment record with his Redetermination Application (Form 4765). Mr. P has recorded a monthly insurance payment of $700. The HSC contacts Mr. P about the $700 monthly payment. Mr. P explains that he is a cab driver and must carry additional insurance to cover his passengers. He provides verification of his insurance coverage. Mr. P is allowed the $700 monthly insurance expense.
NOTE: A client is not required to use Self-Employment Record (Form 2790).
Example 1: Ms. J is self-employed in her home providing child care services. She reports receiving income of $200 each Friday and expenses of $25 per week. The total self-employment earnings budgeted is $860 ($200 x 4.3 = $860 see PM 13-02-04). Allow $107 as a deduction for expenses ($25 x 4.3 = $107).
Example 2: Mr. T has a lawn service business. He earns $155 per week mowing lawns. His self-employment records show a business expense of $15 per week for gas for his lawn mower and $25 for gas to travel in his vehicle to each work site. The total self-employment amount budgeted is $494 ($155 x 4.3 = $666 see PM 13-02-04) minus deductions ($40 x 4.3 = $172).
Example: Mr. B delivers newspapers and receives income from three different sources. Mr. B is paid weekly from X. On 08/04, he received $50, 08/11 $50, 08/18 $50, and 08/25 $50. Y pays Mr. B every other week. He received $100 on 08/01, $100 08/15, and $100 08/29. Mr. B receives pay monthly from Z and on 08/29 he was paid $200. His expenses are $50 per month. The total self-employment amount budgeted is $650 ($700 - $50 = $650). Set a control to remove the extra periodic check.
Example: The FS unit consist of 7 people. Mr. R records his earnings as a cab driver at the end of each week as follows: 08/02 $400, 08/09 $450, 08/16 $525, 08/23 $575, and 08/30 $675. Mr. R has a monthly insurance payment of $610. He pays a tax lease and licensing fee on 08/07 $100 and 08/14 $100. He reports his weekly fuel cost as 08/02 $85, 08/07 $105, 08/14 $115, 08/21 $90, and 08/28 $125. The total self-employment earnings budgeted is $927 ($2,625 ÷ 5 x 4.3 see PM 13-02-04) minus actual expenses of $1,330.
Illinois Department of Human ServicesJB Pritzker, Governor · Grace B. Hou, Secretary
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