(CD15-05, OEC15-02 dated January 23, 2015), (CD12-33, OEC12-06 dated March 15, 2012)
Use the previous year’s tax forms to verify self employment income. If the participant has been self-employed for one (1) year or more, divide the income received over the last 12 months by 12 to determine the household’s average monthly earnings.
If the participant has been self-employed for less than one (1) year, average the amount of self-employed income over the period of time the business has been in operation to determine the household’s average monthly earnings.
If the current monthly amount does not reflect the household’s normal monthly income because of a substantial increase or decrease in business, use a representative period of earnings to determine the household’s average monthly earnings.
Enter the gross self-employment income on the Select Income (SELINC or FMX0) screen in FAMIS.
ote: For self employment businesses that are set up as Corporations or S Corporations, income dispersed to the owner(s) is considered wages, not self employment earnings. As such, business expenses cannot be deducted from these wages.