D Projecting Self-Employment
 
(01/01/19 - 12/31/19)
Projecting income is predicting future income using recently received income that is expected to continue.
 
When the annualized or averaged self-employment income is not a true reflection of the monthly income reasonably certain to be received during the approval period, project the self-employment income as follows:
 
Exclude months with unusual income.
Add the gross income received in the remaining months.
Divide the total by the number of months used. This amount is the monthly projected income.
 
Discuss with the participant whether the projected amount reflects the monthly income reasonably certain to be received during the approval period. Complete one of the following based on the discussion:
 
When the projected amount accurately reflects the participant's expected income, budget the projected amount. (See Example Projecting Self-Employment)
When the projected amount does not accurately reflect the participant's expected income, see Anticipating Self-Employment.
 
WARNING
Documentation must support determinations of eligibility and benefit level. Document in enough detail to ensure that any reviewer can assess whether the determination is reasonable and accurate. Include specific information regarding the reason the income is determined to be normal. (See Income Documentation Requirements)
 
When expenses are incurred, see Allowable Business Expenses.