Gross income from self-employment, minus the costs of doing business, is nonexempt earned income. Gross income includes the total gain from the sale of capital goods or equipment related to business. For the treatment of assets used in self-employment, see PM 07-04-05 and WAG 07-04-05.
Self-employment includes, but is not limited to, the following types of activities or jobs:
- small business;
- sales (including home sales such as cosmetics, home care products, and home furnishings);
- dressmaking, child care (including payments from the Child and Adult Care Food Program), home repair, yard work, or animal care;
- piecework completed in the home;
- roomers or boarders; and
- rental income received as a result of a client's management of the property at least an average of 20 hours per week.
Use the client's records as proof of income and expenses, unless the information is questionable. If the information provided by the client is questionable, request additional documentation. For budgeting self-employment income see PM 13-02-03 and WAG 13-02-03-a.
a SNAP unit with self-employment income from day care ( including income from the Child and Adult Care Food Program), may choose to use either actual documented costs of meals or the Day Care Meal Standard amounts as a business expense. If the client chooses to use actual documented costs, the expense allowed may exceed the Day Care Meal Standard amounts. If the standard is used, no more than 2 meals and one snack provided daily to each child may be allowed.
The cost of travel necessary for work is allowable. Allow the amount the client claims in their self-employment record for transportation as an expense. The client's record is verification of the expense. If a client uses their vehicle for both personal and business purposes, allow a percentage of the cost for things like repairs, tune-ups, etc., as a business expense. Allow a percentage of the vehicle costs equal to the percentage of mileage that the vehicle was used for business purposes.