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Seasonal and Annualized Self-Employment

When a person is self-employed for only part of the year, determine if the self-employment falls into a seasonal or annualized pattern. The difference between seasonal or annualized self-employment is the time period during which the self-employed person intends to support the household.

  • A seasonally self-employed person only intends to support the household with this self-employment during the time period he or she receives pay. He or she has an alternative means of supporting the family during the remainder of the year.
  • A person has annual self-employment when he or she receives pay during only part of the year and intends to support the household throughout the entire year.

Use the household’s statements at the interview and the self-employed person’s verification to help make this evaluation.

Seasonal Calculation

Divide any self-employment income over the time the client supports him or herself with this income.


  1. Use the gross self-employment income shown on the person's federal income tax return or calculate the annual gross self-employment amount by using the client’s business records.
  2. Ask if there are self-employment expenses. If the client claims business expenses, subtract 50% from the client’s gross self-employment income.
  3. Divide the income by the number of month’s the person spends doing his or her self-employment each year. Consider the partial first month a person is performing self-employment as a full month when considering how many months a person has worked in the past year.

Annual Self-Employment Calculation

Average any self-employment income across a full year.

  1. Use the gross self-employment income shown on the person's federal income tax return or calculate the annual gross self-employment amount by using the client’s business records.
  2. Ask if there are self-employment expenses. If the client claims business expenses, subtract 50% from the client’s gross self-employment income.
  3. Divide his or her self-employment income by 12 months even though the income is received over a shorter time frame.

Removing Income

Seasonal self-employment only supports the household when a person is working. The client’s payments mirror his or her work, and this income only counts toward eligibility as long as the client is performing this work and receiving payments. When you verify that the client has stopped seasonal self-employment, remove this income from the benefit.

On the other hand, you only remove annual self-employment after verifying the self-employed person will no longer engages in this work. This income remains on the case even when household is not expecting another payment until the next year, so you must confirm the end of the self-employment before removing this income.

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