WAC 388-450-0085 Does the department count all of my self-employment income to determine if I am eligible for benefits?

This section applies to cash assistance, Basic Food, and medical programs for children, pregnant women, and families. We decide how much of your self-employment income to count by:

For cash, Basic Food, and family medical programs:

1. We must count actual income in the month of application.

a.  Adding together your gross self-employment income and any profit you make from selling your business property or equipment;

b.  Subtracting your business expenses as described in subsection (2) below; and

c.  Dividing the remaining amount of self-employment income by the number of months over which the income will be averaged.

2.  We subtract one hundred dollars as a business expense even if your costs are less than this. If you want us to subtract your actual costs of more than one hundred dollars, you must list and give us proof of your expenses for us to count them. We never allow the following expenses:

1. a. Federal, state, and local income taxes;

   b. Money set aside for retirement purposes;

   c. Personal work-related expenses (such as travel to and from work);

   d. Net losses from previous periods;

   e. Depreciation; or

   f. Any amount that is more than the payment you get from a boarder for lodging and meals.

3.  If you have worked at your business for less than a year, we figure your gross self-employment income by averaging:

1. a. The income over the period of time the business has been in operation; and

   b. The monthly amount we estimate you will get for the coming year.

4.  For cash and medical assistance, if your self-employment expenses are more than your self-employment income, we do not use this "loss" to reduce income from other self-employment businesses or other sources of income to your assistance unit.

5.  For Basic Food, we use a "loss" from self-employment farming or fishing income to reduce other sources of income only if you meet the following three conditions:

a. Someone in your assistance unit is a self-employed farmer or fisher;

b. Your gross yearly income from farming or fishing is or is expected to be at least one thousand dollars; and

c. Your allowable costs for farming or fishing are more than your income from farming or fishing.

For children's and pregnancy medical programs:  

6.  If you have worked long enough at the business to file a federal tax return last year and it represents you current income, we figure your gross self-employment income by:

a.  Adding together your gross self-employment income and any profit you make from selling your business property or equipment;

b.  Subtracting your allowable business expenses except as described in subsection (2) above; and

c.  Averaging the income over the period the income covers.

7.  If you have worked at your business for less than a year or if you did not file a federal tax return in the last year, we figure your gross self-employment income by:

a.  Adding toegether your gross self-employment income and any profit you make from selling your business property or equipment over the period of time the business has been in operation within the last year;

b.  Subtracting your allowable business expenses except as described in subsection (2) above; and

c.  Averaging the income we esitmate you will get for the coming year.