B Annualizing Self Employment
 
(01/01/17 – 12/31/17)
When the self employment business has been in existence for 12 or more months and there are no significant changes, divide the annual income by 12 to calculate a monthly amount.
 
NOTE Annualize the income even when the participant’s self employment is from two or more sources.
 
EXCEPTION
Self employment income due to farming has special budgeting procedures. (See Farming).
 
When determining a monthly amount, use the 12 full months of income that applies as follows:
 
For new applications, use the 12 full months prior to the month of application.
For renewal applications, use the 12 full months prior to the month of the timely renewal interview.
For reported changes, use the 12 full months prior to the month the change was reported.
 
EXCEPTION
When the reported change is a change in income, do not use the 12 full months prior to the month the change was reported.
 
When the self employment business has been in existence for 12 or more months and the past 12 months are not a true reflection due to an unusual increase or decrease, project the self employment income and expenses as follows:
 
Drop unusual months of income.
Key the normal months of income and expenses on the SEEW Screen.
Key the total number of normal months in the AF or FS field.