7 CFR § 273.9(b)(1)(ii)

Self-employment income is generally reported on income tax forms.  Determine the income from the following forms if tax forms are not filed:

• Business accounts 
• Bookkeeping records
• Other records maintained by the business owner that allows a calculation of the income and expenses 
• Sales and expenditures records

Gross Self-Employment Income

7 CFR § 273.9(b)(1)(ii) & 7 CFR § 273.10(a)(2) and (3)

Gross self-employment is the anticipated or actual total, before expenses, of all money the business produces, including the full amount of capital gains.

Net Self-Employment Income

7 CFR § 273.9(b)(1)(ii) & 7 CFR § 273.10(a)(2) & 7 CFR 273.11(a)(2)

Net self-employment income is the gross self-employment income minus allowable self-employment expenses. 

Annualizing Income

7 CFR § 273.10(c)(3)(ii) & 7 CFR § 273.11(a)(1)

Budget self-employment income over a 12-month period if the reported income represents an EDG’s annual support, even if the income is received in a shorter period of time.

Example: An EDG of 4 operates a highly profitable business during the summer months earning $40,000 after expenses. By January the EDG reports they have exhausted their income and need SNAP assistance. The self-employment income is annualized because it is the household’s annual support. They do not have any other income available in the non-self-employment months.

Averaging Income

7 CFR § 273.10(c)(3)(ii) & 7 CFR § 273.11(a)(1)(i)

Average income over the number of months the income is intended to cover if the income is not intended for the EDG’s annual support. 

Example:  An individual operates their own concession stand during the summer months and waits tables during the winter months. The self-employment income is averaged over the summer months because the income is only intended for those months. The individual has other income available during the other months.