M E M O R A N D U M

 IM-167  09/10/01  BUDGETING SELF-EMPLOYMENT INCOME AND EXPENSES FOR FOOD STAMPS
FOOD STAMP MANUAL REVISION #35
SECTION 1115.040.00
SECTION 1115.040.05
SECTION 1115.040.15
SECTION 1115.040.25
SECTION 1115.040.30


SUBJECT:
BUDGETING SELF-EMPLOYMENT INCOME AND EXPENSES FOR FOOD STAMPS

FOOD STAMP MANUAL REVISION #35
SECTION 1115.040.00
SECTION 1115.040.05
SECTION 1115.040.15
SECTION 1115.040.25
SECTION 1115.040.30
 
DISCUSSION:
Food stamp policy for budgeting self-employment income and expenses of producing income for food stamps is changed with regulatory changes effective June 1, 2001. 

The changes in budgeting self-employment income/expenses are as follows:

  • Average self-employment income over the period of time it is intended to cover, even if the household receives income from other sources.  If averaged income does not accurately reflect the household's actual circumstances, calculate self-employment income on the basis of anticipated, not prior, earnings.
  • For households whose self-employment income is calculated on an anticipated (rather than averaged) basis, calculate the amount of capital gains the household anticipates receiving rather than averaged during the months the income is averaged.
  • The principal of the purchase price of income-producing property is now allowed as an expense for producing income.
The online manual is updated to show the new revision.  File this revision in the hard copy version of the Food Stamp Manual.
 
NECESSARY ACTION:
  • Review this memorandum with all appropriate staff.
  • Effective immediately, use new budgeting policy for self-employment income and expenses for producing income.
HJK
Distribution #6
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IM-166
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