Md. Code Regs. 07.03.17.39

Current through Register Vol. 51, No. 22, November 1, 2024

Section 07.03.17.39 - Self-Employment Income

A. Calculation. The local department shall:

(1) Annualize self-employment income that represents a household's annual income even if the income is received within a short period of time or the household receives income from another source;

(2) Calculate self-employment income based on anticipated earnings if the averaged annualized amount does not reflect the household's actual circumstance because the household has experienced a substantial increase or decrease in business;

(3) Average self-employment income that is meant to meet the household's needs for only a part of the year over the period of time the income is intended to cover; or

(4) Average the income of a business that has been in existence for less than a year over the period of time the business has been in operation.

B. Deduction. The local department shall allow a deduction of 30 percent of the gross receipts of self-employment income as the cost of producing income, with the exception of the self-employment of farmers as described in §C of this regulation.

C. Self-Employed Farmers.

(1) If the cost of producing self-employment income exceeds the income derived from a self-employment farming enterprise, the losses shall be offset against any other countable income.

(2) To be considered a self-employed farmer, the farmer shall receive or anticipate receiving annual gross proceeds of $1,000 or more from the farming enterprise.

Md. Code Regs. 07.03.17.39

Regulation .39 amended effective 42:12 Md. R. 761, eff.6/22/2015