considered self-employed. A person
is considered self-employed when:
(1) he or she declares himself or herself
to be self-employed;
(2) there is an employer/employee
relationship and the employer does not withhold income taxes or Federal
Insurance Contributions Act (FICA), even when required by law to do so; or
(3) the employer withholds taxes and the
person provides proof he or she files taxes as self-employed.
income. Self-employment income received by household members whose income
is derived from a self-employment enterprise owned solely or in part by the
household member or when the household member works for an employer, but is
considered self-employed per (a) of this Section, is treated per (1) through
(10) of this subsection.
gains. The worker counts as income the proceeds from
the sale of capital goods or equipment and calculates it in the same manner as
a capital gain for federal income tax purposes.
Even though a percentage of the proceeds from the sale of capital goods
or equipment are taxed for federal income tax purposes, the worker counts the
full amount of capital gain as income.
(2) Profit sharing.
Households who operate S corporations, general or limited partnerships,
or limited liability companies may receive profit sharing that is reported on
the household's personal income tax return.
When a household member:
participates in the operations, the income from profit sharing is considered
part of the household's self-employed earned income; or
(B) does not
actively participate in the operations, the income from profit sharing is
considered part of the household's unearned income.
farm income. To be considered a self-employed farmer, the
farmer must receive or anticipate receiving annual gross proceeds of $1,000 or
more from the farming enterprise.
(A) Farming is defined as cultivating or
operating a farm for profit either as owner or tenant.
(B) A farm includes stock, dairy, poultry,
fish, fruit, truck farms, or plantations, ranches, ranges, or orchards.
(i) A fish farm is an area where fish are grown or raised, artificially
fed, protected, and cared for, and does not include an area where they are only
caught or harvested.
(ii) A plant nursery is a farm for purposes of this definition.
(C) Per Section 273.11(a)(2)(ii) of Title 7 of the Code of Federal
Regulations (7 C.F.R. §273.11(a)(2)(ii)), when the cost of
producing self-employment farm income exceeds the income received, the worker
offsets the losses against other countable household income by:
(i) first offsetting the losses against
other self-employment income; and
(ii) then offsetting any remaining farm
self-employment losses against the total amount of earned and unearned income
received by the household after applying the earned income deduction per
Oklahoma Administrative Code (OAC) 340:50-7-31 (a)(2).
self-employment income. Self-employment income received on a monthly
basis that represents a household's annual support, is normally averaged over a
12-month period. When the averaged
amount does not accurately reflect the household's actual monthly circumstances
because the household experienced a substantial increase or decrease in
business, the worker calculates the self-employment income based on anticipated
self-employment income. Self-employment income intended to meet the
household's needs for only part of the year is averaged over the period of time
it is intended to cover. For example,
the income of self-employed vendors who work only in the summer and supplement
their income from other sources during the balance of the year is averaged over
the summer months rather than a 12-month period.
self-employment income. Self-employment income that represents a
household's annual support must be annualized over a 12-month period, even when
the income is received in a shorter period of time. For example, self-employment income received
by crop farmers must be averaged over a 12-month period when the income
represents the farmer's annual support.
(A) When the household's self-employment
income has been received for less than a year, the income must be averaged over
the period of time received and the monthly amount projected for the coming
year. • 1
(B) When the household's self-employment
income has been received for a short time and there is insufficient data to
make a reasonable income projection, the worker does not consider income from
this source until the benefit renewal or certification renewal month. At benefit renewal or certification renewal,
the worker averages the income over the number of months received until a full
year's information is available. • 2
net monthly annualized self-employment income. When the household
has business expenses associated with its self-employment income, the business
expenses must be deducted before determining if the household meets the maximum
gross income standards per Oklahoma Department of Human Services (DHS) Appendix C-3, Maximum Food Benefit
Allotments and Standards for Income and Deductions. When the household does not have business
expenses, the gross self-employment income is used.
(A) When the household filed an income tax
return on its self-employment income for the most recent year, the worker uses
the gross self-employment income shown on the income tax return, subtracts 50
percent of the income for claimed business expenses, and divides the net
self-employment income by the number of months to be averaged per 7 C.F.R. §273.11(b)(3)(iv). • 3
(B) When the household did not file an
income tax return on its self-employment income for the most recent year, the
worker uses (i) through (iii) of this subparagraph to determine the net monthly
(i) The worker computes gross self-employment income, including capital
gains, using the household's self-employment business records or employer
records, when applicable.
(ii) When the household declares incurred business expenses, the worker
subtracts 50 percent of the gross self-employment income as business expenses
per 7 C.F.R. §273.11(b)(3)(iv). When the household did not incur business
expenses, a business expense deduction is not given.
(iii) The worker then divides the net self-employment income by the
number of months to be averaged.
(C) The worker adds monthly net
self-employment income to all other earned income received by the
household. When the household reports a
loss instead of a profit on the business, the worker does not deduct the loss
from other household income.
(i) The worker adds the total monthly earned income, less the earned
income deduction per DHS Appendix C-3 to all other monthly income received by
(ii) The worker subtracts the standard deduction, dependent care, and
shelter costs as for any other household per OAC 340:50-7-31 to determine the
monthly net income of the household.
income. When a household who would normally have the
self-employment income annualized experiences a substantial increase or
decrease in income, the worker does not calculate self-employment income on the
basis of prior earnings, such as income tax returns. Instead, the worker calculates the
self-employment income using only the income that can reasonably be anticipated
to project future earnings. The worker
uses procedures in (b)(7)(B) and (C) of this Section to determine net monthly
with income from boarders. A household that operates a commercial
boarding house may be considered a food benefit household and self-employed per
(7) of this subsection. A household with
boarders or roomers that is not a commercial boarding house may receive food
benefits per (A) through (C) of this paragraph.
(A) The worker excludes a person paying a
reasonable amount for room and board from the household and counts payments
from the boarder as self-employment income when determining the household's
eligibility and benefit level.
(i) The income from a boarder includes all
direct payments to the household for room and meals, including contributions to
the household for part of the household shelter expense.
(ii) The worker does not count expenses
paid directly by a boarder to someone outside the household as income to the
(B) The worker excludes 50 percent of the
boarder payment as the cost of doing business.
(C) The worker includes the net income from
self-employment with other earned income minus the earned income deduction.
(i) The worker computes the shelter cost
incurred by the household, even when the boarder contributes part of the
shelter expense, to determine if the household qualifies for a shelter
(ii) The shelter and utility cost must not
include any expense billed to and directly paid by the boarder to a third
from rental property. The worker
considers income received from rental property as self-employment income.
(A) The worker treats rental income as
earned income when a member of the household actively manages the property an
average of at least 20 hours per week.
(B) When a household member does not
actively manage the property at least 20 hours each week, the worker considers
the income as unearned. The person is
eligible for business expenses per (7) of this subsection.