Anticipating Self-Employment
(01/01/19 - 12/31/19)
Anticipate self-employment income when there is not a full month of income received or the projected amount does not accurately reflect the monthly circumstances, due to any of the following:
Unpredictable self-employment income that may be received less often than monthly. This income may not represent the participant's annual income.
An increase in self-employment income expected to be received from a new business source.
Predictable self-employment income that normally fluctuates seasonally or monthly. This income represents the participant's annual income.
Self-employment income expected to be received from a terminated business source. (See Terminated Self-employment)
NOTE When an unusual change in circumstances causes the self-employment to temporarily stop without knowing when it will resume, do not budget the self-employment income. (See Example Unusual Change)
Self-employment income due to farming uses actual expenses and has special budgeting procedures. (See Farming)
Determine self-employment income that is budgeted on an anticipated basis by discussing with the participant the amount of income expected to be received monthly and the reason the prior income is not expected to continue. (See Example Anticipating Self-Employment)
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.