Arts and Crafts
Information on this page refers to the Nutrition Assistance program Information on this page refers to the Cash Assistance program
This section includes information about income derived from the sale of arts and crafts.
Policy
Income received from selling arts and crafts is countable. Selling arts and crafts includes, and is not limited to any of the following:
Jewelry
Macrame
Rugs
Other items made for selling
Self-employed participants may be eligible for a 40% expense deduction from income. To be eligible for the 40% Self-Employment Expense Deduction, only one allowable expense needs be verified. When self-employment expenses are not verified using the verification process, eligibility is determined without those deductions.
The sale of arts and crafts is considered self-employment when it meets the self-employment definition. Self-employment is defined as working for oneself rather than working for an employer.
Countable income is used to determine an income budget. (See Income Budgeting to see how FAA determines the income budget.) FAA needs to know about income that is both countable and not countable to determine whether a budgetary unit’s expenses are exceeding their income. (See Income Eligibility for more information about how FAA uses countable and not countable income.)
Verification
The participant has the primary responsibility for providing verification. (See Participant Responsibilities – Providing Verification for additional policy.)
For NA, all of the following income is required to be verified before eligibility is determined:
Reported on a new application, during the interview of a new application, or changes reported before the eligibility determination of a new application.
Changes after an eligibility determination of a new application (e.g., a renewal application, mid approval contact, etc.) and any of the following apply:
The source of the income has changed.
The income is questionable(g) or unclear(g).
The reported income amount has changed by $51 or more.
The previous verification in the case file is more than 59 calendar days old.
For CA, all income is required to be verified before determining eligibility.
Examples of verification that can be used for Arts and Crafts include, and are not limited to, any of the following:
Bookkeeping records
Business ledgers listing income amounts received and expenses incurred
Actual receipts
Contracts for work
Statements from patrons and companies
Most recent Internal Revenue Service (IRS) U.S. Individual Income Tax Return (1040) form. Below are common IRS Schedule forms that the participant may provide in addition to the 1040:
Schedule C, Profit or Loss From Business
Schedule E, Supplemental Income and Loss
Schedule F, Profit or Loss from Farming
Schedules B-1, C, D, K, K-1, K-2, K-3, and M-3 of IRS U.S. Return of Partnership Income (1065) form (See Limited Liability Company (LLC) Definition for more information about LLCs.)
NOTE Do not use the most recent IRS 1040 and Schedule forms when the participant indicates it does not accurately reflect the participant's current income.
Rent or mortgage receipt for business property
Property tax statements for business property
Utility costs for business property
Cleaning cost bills for business property
Business location and equipment maintenance
Personal records indicating personnel salaries or costs of outside labor, such as canceled checks and payroll checks
Participant’s statement for self-employment income, when one of the following apply:
Obtaining documented or collateral contact verification may cause harm or undue hardship(g) for the participant.
When all of the following occur:
Other attempts to obtain the verification have failed. This includes documented and collateral contact verification.
The participant has requested assistance from FAA.
The worker has evaluated the request for assistance and cannot obtain the verification from another acceptable source.
The participant statement is not questionable(g).
Participant’s statement for self-employment expenses unless questionable.
NOTE When self-employment expenses are not verified, eligibility is determined without the 40% Self-Employment Expense deduction.
Legal Authorities
last revised 10/02/2023