alaska heating assistance programs policy manual - DPAweb ...

self-employment standard deduction is not
allowed.
3003-4 C. VERIFICATION OF SELF-EMPLOYMENT INCOME AND EXPENSES
Written or verbal verification of self-employment income and expenses is
required. Verification may include records showing the history of income
and expenses, or documentation for what is expected to be received and
spent in the future. Written verification is preferred and includes tax
returns or business records. Verification of expenses must contain
enough information for the worker to determine allowable expenses. If an
expense is not identifiable, the expense is not allowed as a cost of doing
business. If the information received is questionable, additional
clarification and verification must be sought. Administrative Procedures
Manual section 105-1 C provides policy on when information is
considered questionable.
The method by which an individual’s net self-employment income was
determined should be fully documented in the case file so that anyone
reviewing the information will be able to determine how the amount was
calculated.
Possible means of verification are listed below:
a. Self-Employment Business Records
The self-employed person’s written business records are the best and
preferred method of verification. Self-employment has no employer
verification. The self-employed person is the employer, and thus,
business records maintained by the individual are acceptable
verification.
The self-employed person has primary responsibility to tabulate the
income and expense types and amounts in an organized manner.
Acceptable business records range from informal personal records,
such as a listing of receipts for business income and costs of doing
business, to professionally prepared documents such as financial
statements. If written business records are not maintained or readily
available, such as during a telephone interview, the statement of the
self-employed person or collateral contact may be used.
The verification used must include sufficient information to determine
when income was received and costs incurred and if the costs are
allowable. The worker should document the information including detail
of the type of expense, the amount of the expense and whether it is
allowable. Individual receipts for income and costs may be requested if
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