Department of Human Services

Food Stamp Online  Policy Manual

Treatment of Income – Budgeting




Food Stamp Table of Contents


(a)   When a member of the household receives income from self-employment, he/she shall be required to keep a record of expenses incurred in the production of this income.


(b)   Expenses


1.      Allowable costs of producing self-employment income include, but are not limited to:


(i)         Identifiable costs of labor (salaries, employer’s share of SS, insurance, etc.);


(i)         Stock, raw materials, seed and fertilizer, feed for livestock;


(ii)       Rent and cost of building maintenance;


(iii)     Business telephone costs;


(iv)     Costs of operating a motor vehicle when required in connection with the operation of the business;


(v)       Interest paid to purchase income producing property;


(vi)     Insurance premiums and taxes paid on income producing property;


(vii)   Costs of feed for work stock; or


(viii) Costs of meals and equipment for children for whom day care is provided in the applicant/recipient’s home.


2.      Unallowable Deductions


The following items are not considered as a cost of producing self-employment income:


(i)         Payments on the principal of the purchase price of income producing real estate and capital assets, equipment, machinery, and other durable goods;


(ii)       Net losses from previous periods;


(iii)     Federal, state, and local income taxes, money set aside for retirement purposes, and other work related personal expenses (such as transportation to and from work). These expenses are accounted for the 20% earned income deduction in the Food Stamp Program.;


(iv)     Costs of producing home produce intended for family consumption;


(v)       Family living expenses; or


(vi)     Depreciation.


Glossary of Terms


Food Stamp Table of Contents