Income from self-employment minus allowable business expenses is counted as earned income. Self-employment includes, but is not limited to:
- Caregiver-In Home
- Child Care
- Computer repair
- Driving Taxi/Truck/Bus
- Event Planning
- Farming or Ranching
- Handyman Services
- Independent Contractor
- Insurance Agent
- Pet Care
- Lawn/Yard Care
- Newspaper Delivery
- Real Estate Agent
- Rental Property/Boarding
- Small Business Owner/Operator
- Tax Preparation
- Website Design
Under MAGI budgeting, when business expenses are higher than the income earned, the business may report a net loss. The excess expenses (or loss) are deducted from the EDG's other countable income.
Verify all self-employment income and business expenses. The client's records may serve as proof of current income and expenses. Accept the client's records as proof of income and expenses unless the information is questionable, or the client reports that income is variable or seasonal. In those situations, request additional documentation.
The federal tax return for the prior tax year is acceptable verification of income when the self-employment is the same as it was in the last tax year, and
- proof of income and expenses for the last 30 days is unavailable, or
- income and expense records for the last 30 days do not reflect anticipated annual income because the self employment income is seasonal or variable throughout the year.
If the client fails or refuses to provide proof of self employment income and expenses, the case is ineligible. See PM 08-03-01-b for allowable business expenses.