933.01 Treatment of Specific Income Types SR 12-17, 05/12 (FAM-A)

Earned income treatment — Use the income from the most recent consecutive 4-week period to obtain a monthly average. If the income is fluctuating, and it is not possible to obtain an accurate average based on the most recent consecutive 4-week period, use up to 8 weeks’ income received in the most recent consecutive 8-week period and omit any earnings received in any atypical week to obtain a monthly average.

Self-employment income — the dollar value of in-kind benefits or the cash received as compensation from a self-employment enterprise such as sales, consulting, or farming.

Treatment: Count the monthly net income from self-employment after deducting business expenses allowed by the Internal Revenue Service for federal income tax purposes.

Do not allow depreciation as a deduction when calculating self-employment income.