Self-Employment Expenses SR 96-29, 01/97 (FSM-A)

Subtract the actual cost of doing business from self-employment income to arrive at the countable self-employment income. Determine countable self-employment income before combining self-employment income with other income. If the cost of doing business exceeds the self-employment income, the countable self-employment income is zero.

Examples of self-employment expenses include, but are not limited to:

. cost of materials needed to perform the job such as lumber, demonstration products,

. tools and equipment, *

. work-related clothing,

. vehicle expenses including cost of maintaining the vehicle, mileage, tokens or tolls, gasoline, insurance,

. employee taxes,

. state and municipal business taxes,

. advertising expenses,

. postage,

. cost of maintaining a job site, including a room in one's home,

. telephone expenses,

. electricity for the job site,

. bookkeeping and payroll expenses,

. employees,

. insurances, including disability, workers compensation, job site insurance, bonding,

. lodging away from the home while on a job,

. meals, and

. rentals related to being able to complete a job, whether it is equipment or other.

Exception: For farmers, apply the excess cost of doing business as a deduction from other case income.