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


Self-employment income is earned directly from a business or profession, rather than a specified salary or wages from an employer.

  • Self-employment exists when there is no employer/employee relationship. 
  • Tax and Social Security payments are the self-employed individual’s responsibility. 


Examples include, but are not limited to: 

  • Dependent care providers
  • Farmers 
  • Independent contractors 
  • Newspaper carriers 


Income received from a partnership or S-Corporation is self-employment income. 


Income received from a C-Corporation is not self-employment income. Treat income from a corporation as follows:

  • Wages and profits paid from a corporation are earned income.  Budget like any other earned income.
  • Annualize dividends and other unearned income paid from the corporation.  

Note:  Do not budget corporation losses identified on IRS Form Schedule E.  


Last Update

Source # 4

Effective Date: 7/26/19