Department of Human Services

Food Stamp Online  Policy Manual

Treatment of Income – Budgeting




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For those households whose self-employment income is not averaged, but instead is calculated on an anticipated basis, add any capital gains the household anticipates it will receive in the next 12 months (starting with the date the application is filed). Divide this amount by 12. Use this amount in successive certification periods/months during the next 12 months, unless the anticipated amount of capital gains changes. Add the anticipated monthly amount of capital gains to the anticipated monthly self-employment income and subtract the cost of producing the self-employment income. Except for depreciation, calculate the cost of producing the self-employment income by anticipating the monthly allowable costs of producing the self-employment income.


If the household anticipates that it will receive at least $1,000 gross proceeds from a self-employment farming enterprise during the next 12 months, and it anticipates that the costs of producing this income will exceed the income produced, exclude these excess costs from the household’s other income. Determine the monthly excess costs as follows:


(a)  Subtract the anticipated costs of doing business for the next 12 months from the gross anticipated farm income for the same period;


(b) Divide the result by 12. This amount is the monthly excess costs (loss) to be excluded from the household’s other monthly income (Refer to Examples in Section 1240-1-4-.24-(4); and


(c)  If the household has income from more than one self-employment enterprise, compute the farm income and excess cost separately, because the non-farm losses cannot be deducted from other income.


Glossary of Terms


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