WAC 182-509-0085 MCS income--Self-employment income--Calculation of countable income.

This section applies to medical care services (MCS).  The agency or the agency's designee decides how much of an individual's self-employment income to count by:

1. Counting actual income in the month of application. This is done by:

a.  Adding together the individual's gross self-employment income and any profit the individual made from selling their business property or equipment;

b.  Subtracting the individual's business expenses as described in subsection (2) of this section; and

c.  Dividing the remaining amount of self-employment income by the number of months over which the income will be averaged.

2.  Subtracting one hundred dollars as a business expense even if the individual's costs are less than this. If the individual's costs of more than one hundred dollars,  the agency or the agency's designee may subtract the individual's actual costs if the individual provides proof of their expenses.  The following expenses are never allowed:

1. a. Federal, state, and local income taxes;

   b. Money set aside for retirement purposes;

   c. Personal work-related expenses (such as travel to and from work);

   d. Net losses from previous periods;

   e. Depreciation; or

   f. Any amount that is more than the payment the individual gets from a boarder for lodging and meals.

3.  If the individual has worked at their business for less than a year, figuring the individual's gross self-employment income by averaging:

1. a. The income over the period of time the business has been in operation; and

   b. The monthly amount is estimated to be the amount the individual will get for the coming year.

4.  If the individual's self-employment expenses are more than their self-employment income, not using this "loss" to reduce income from other self-employment businesses or other sources of income to the assistance unit.