alaska heating assistance programs policy manual - DPAweb ...

• Farm equipment • Playground
equipment
• Livestock
• Boats/skiffs and their engines
• Fishing nets (gill nets, seine nets)
j. Period of Self-Employment
The period of self-employment is the number of months in which a
seasonally self-employed individual is actively engaged in producing, or
attempting to produce, self-employment income. The period of selfemployment
does not include months in which maintenance or
preparation of tools or equipment is the only self-employment activity
performed.
3003-4 B . COSTS OF DOING BUSINESS
Allowable costs of doing business are determined using either the selfemployment
standard deduction or actual allowable expenses. The
worker must give the household the choice of using actual expenses if
they believe their expenses exceed the amount allowed using the
standard deduction. If the household chooses to use actual expenses,
they must provide verification of the expenses
.
See Example 3 below for an explanation of when to use the standard
deduction and when to use actuals.
a. Using The Self-Employment Standard Deduction as Cost of Doing
Business
The self-employment standard deduction is 50% of the estimated
gross self-employment income.
Example:
Joe is self-employed as a carpenter. His gross self-employment
income is $2,000 per month. The allowable costs of doing
business are $1,000 ($2,000 x 50%). Joe’s adjusted gross selfemployment
income is $1,000.
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