alaska heating assistance programs policy manual - DPAweb ...

additional information is needed or any of the items listed are
questionable.
b.Tax Forms
Income tax documents provide acceptable documentation of selfemployment
income and expenses. Such forms include: Form 1040
Individual Income Tax Return, Schedule C Profit or Loss from Business,
Schedule E Supplemental Income and Loss, Schedule F Profit or Loss
from Farming, Form 1065 Partnership Return of Income including
Schedule K-1 Partner’s Share of Income, and Form 1120-S, Income
Tax Return for an S-Corporation including Schedule K-1 Shareholder’s
Share of Income.
Some costs of doing business allowed by the IRS, such as
depreciation, are not allowable costs of doing business under public
assistance program policy. When using tax forms as verification,
review the claimed expenses, noting which are allowed under program
rules.
c. Third Party Contacts
Written documentation from a third party verifying the self-employed
person’s income or expenses is acceptable. This may include
verification from city or borough offices, taxicab stand owners, parent
companies, fish processors/canneries, and the Department of Fish and
Game.
3003-4 D. UNIQUE SELF-EMPLOYMENT SITUATIONS
a. Household Members as Employees
For some households, the self-employment enterprise involves more
than one member. In some of these cases, household members may
be paid wages, contract payments, or crew shares of the catch
proceeds from the enterprise. In these situations, the payments are
treated as follows:
• When a dependent child in the household receives payment of
wages, contract payments, or crew shares for work in the selfemployment
enterprise, the amount paid to the child is not an
allowable cost of doing business and the wages/shares do not
count as income to the child. The amount paid to the child is not
deducted from the gross self-employment income for the
enterprise.
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