Idaho Admin. Code r. 16.03.04.428 - CALCULATION OF SELF-EMPLOYMENT INCOME

Self-employment is generally considered annual or seasonal. The Department will add all gross self-employment 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.

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.

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.

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.

Notes

Idaho Admin. Code r. 16.03.04.428

Effective July 1, 2024