Section 17-663-73 - Determining monthly self-employment income The procedures for arriving at the monthly self-employment income are as follows:
(a) For the period of time the income is determined to cover: (1) Add all gross self-employment income including capital gains;(2) Exclude the cost of producing the self-employment income; and(3) Divide the self-employment income by the number of months over which the income will be averaged.(b) For households whose self-employment income is not averaged but is calculated on an anticipated basis, the branch shall: (1) Add any capital gains the household anticipates receiving in the next twelve months starting with the date the application is filed and dividing this amount by twelve;(2) Use the average monthly capital gains figure in successive certification periods during the next twelve months, except that a new average monthly amount shall be calculated over the twelve-month period if the anticipated amount of capital gains changes; and(3) Then: (A) Add the anticipated monthly amount of capital gains to the anticipated monthly self-employment income;(B) Calculate the cost of producing the self-employment income by anticipating monthly allowable costs of producing; and(C) Subtract the cost of producing the self-employment income from the self-employment income.(c) The monthly net self-employment earned income, less any farm self-employment losses, will be added to any other earned income received by the household. The total monthly earned income, less the earned income deduction, will then be added to all monthly unearned income received by the household.(d) Farm self-employment losses will be offset against other countable household income. To be considered a self-employed farmer, the farmer must receive or anticipate receiving annual gross income of $1,000 or-more from the farming enterprise. Farming losses will be calculated as follows: (1) Farming losses occur when the cost of producing the income exceeds the gross income. These losses will be averaged or anticipated over the year in the same manner as farm self-employment income to determine monthly losses.(2) The monthly losses will be subtracted from other countable household income for both the gross income determination and the budget computation.(3) When there is other self-employment income in the household, the farming losses will be subtracted from the net self-employment income, not from the total household income. If there are losses remaining after this computation, the remainder will be subtracted from the total of other household income.[Eff 3/19/93; 11/09/05; am and comp OCT 07 2010] (Auth: HRS § 346-14) (Imp: 7 C.F.R. §273.11(a)(1), (2), (3) )