Calculation Of Self-Employment Income

Self-employment is generally considered annual or seasonal. The Department will add all gross self-employment IDAHO ADMINISTRATIVE CODE IDAPA 16.03.04 Department of Health and Welfare Idaho Food Stamp Program Section 429 Page 47 income, either actual or anticipated, and capital gains and exclude the costs of producing the self-employment income and divide the remaining amount of self-employment income by the number of months over which the income will be averaged. This amount is the monthly self-employment income. (7-1-24) 01. Self-Employment Expense Deduction.The Department will use a standard fifty percent (50%) self-employment deduction unless the applicant claims the actual allowable expenses exceed the standard deduction and provides proof of the expenses. (7-1-24) 02. Allowable Costs of Producing Self-Employment Income. Costs of labor, stock, raw material, seed and fertilizer, payments on the principal of the purchase price of income-producing real estate and capital assets, equipment, machinery, and other durable goods, interest paid to purchase income-producing property, insurance premium, and taxes paid on income-producing property. (7-1-24) 03. Costs Not Allowable. Net losses from previous periods, federal, state, and local income taxes, money set aside for retirement, work-related personal expenses (such as transportation to and from work), depreciation, amount that exceeds the payment a household receives from a boarder for lodging and meals, net losses from previous periods, and federal, state, and local income taxes. (7-1-24)