Business Less Than One Year
Apply the following steps when a self-employment business has been in operation for less than one year:
●Average the total amount of self-employment income received over the number of months the business has been in operation.
Exclude the following months of income from the average when they are partial months:
●The initial month of self-employment income
●The current month
●Discuss with the participant whether the averaged 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 averaged amount accurately reflects the participant's expected income, budget the averaged amount. (See Example
SEEI Less Than a Year)
●When the averaged amount does not accurately reflect the participant's expected income, see
Projecting Self-Employment.
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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.