Profit from self-employment is averaged over the period it is intended to cover, in order to determine total monthly profit, even if the household has other sources of income.
7 CFR § 273.11(a)(1)(i)
Self-employment income received monthly throughout the year is annualized (averaged over a twelve-month period).
Self-employment income received during a period shorter than a year, but representing the household's yearly income, is also annualized (averaged over a twelve-month period).
Example: A farmer’s total yearly income is $12,000. The farmer receives the income over a four-month period. Since the $12,000 is the total yearly income, the average monthly self-employment income is $1,000.
Self-employment income received during only part of the year and used to supplement income from other sources during the rest of the year is averaged over the months it is intended to cover.
7 CFR § 273.11(a)(1)(iii)
Example: A self-employed vendor supplements their yearly income by selling refreshments at flea markets during June, July, and August. The vendor usually has a total of $900 self-employment income for the season. The CAO anticipates monthly self-employment income to be $300 for each of the three months.
Reissued March 1, 2012, replacing July 13, 2004