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

The Department calculates self-employment income by adding monthly income to capital gains and subtracting a deduction for expenses as determined in Subsection 428.03 of this rule. (3-17-22)

01. How Monthly Income Is Determined. If no income fluctuations are expected, the average monthly income amount is projected for the certification period. If past income does not reflect expected future income, a proportionate adjustment is made to the expected monthly income. (3-17-22)

02. Capital Gains Income. Capital gains include profit from the sale or transfer of capital assets used in self-employment. The Department calculates capital gains using the federal income tax method. If the household expects to receive any capital gains income from self-employment assets during the certification period, this amount is added to the monthly income, as determined in Subsection 428.01 of this rule, to determine the gross monthly income. (3-17-22)

03. Self-Employment Expense Deduction. The Department uses the standard self-employment deduction in Subsection 428.03.a. of this rule, unless the applicant claims that his actual allowable expenses exceed the standard deduction and provides proof of the expenses as described in Subsection 428.03.b. of this rule. (3-17-22)

a. The self-employment standard deduction is determined by subtracting fifty percent (50%) of the gross monthly self-employment income as determined in Subsections 428.01 and 428.02 of this rule; or (3-17-22)

b. The self-employment actual expense deduction is determined by subtracting the actual allowable expenses from the gross monthly self-employment income. The following items are not allowable expenses and may not be subtracted from gross monthly self-employment income. (3-17-22)

i. Net losses from previous tax years; (3-17-22)

ii. Federal, state, and local income taxes; (3-17-22)

iii. Money set aside for retirement; (3-17-22)

iv. Work-related personal expenses such as transportation to and from work; and (3-17-22)

v. Depreciation. (3-17-22)

Notes

Idaho Admin. Code r. 16.03.04.428