§ 256P.05 — Self-employment Earnings
Plain-Language Summary
This section explains how self-employment income is calculated for public assistance eligibility. It sets rules for determining net income from self-employment, including what business expenses can be deducted.
256P.05 SELF-EMPLOYMENT EARNINGS.
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Subdivision 1.Exempted programs.
Participants who qualify for Minnesota supplemental aid under chapter 256D and housing support under chapter 256I on the basis of eligibility for Supplemental Security Income are exempt from this section. Participants who qualify for child care assistance programs under chapter 142E are exempt from subdivision 3. §
Subd. 2.Self-employment income determinations.
Applicants and participants must choose one of the methods described in this subdivision for determining self-employment earned income. An agency must determine self-employment income, which is either:
(1) one-half of gross earnings from self-employment; or
(2) taxable income as determined from an Internal Revenue Service tax form that has been filed with the Internal Revenue Service for the most recent year and according to guidance provided for the Supplemental Nutrition Assistance Program. A 12-month average using taxable income shall be used to budget monthly income. §
Subd. 3.Self-employment budgeting.
(a) The self-employment budget period begins in the month of application or in the first month of self-employment.
(b) Applicants and participants who elect to use taxable income as described in subdivision 2, clause (2), to determine self-employment income must continue to use this method until recertification, unless there is an unforeseen significant change in gross income equaling a decline in gross income of the amount equal to or greater than the earned income disregard as defined in section 256P.03 from the income used to determine the benefit for the current month.
(c) For applicants and participants who elect to use one-half of gross earnings as described in subdivision 2, clause (1), to determine self-employment income, earnings must be counted as income in the month received. §
Subd. 4.Rental income.
Rental income is subject to the requirements of this section.
History:
2014 c 312 art 28 s 36; 2015 c 71 art 5 s 30,35; 1Sp2017 c 6 art 2 s 39; 1Sp2021 c 7 art 7 s 24; 2024 c 80 art 5 s 7; 2024 c 115 art 18 s 22
History: History: 2014 c 312 art 28 s 36; 2015 c 71 art 5 s 30,35; 1Sp2017 c 6 art 2 s 39; 1Sp2021 c 7 art 7 s 24; 2024 c 80 art 5 s 7; 2024 c 115 art 18 s 22