What are the conditions for using current net income for self-employed households for initial eligibility and for verification?
For initial application approval, Page 31 of the Eligibility Guidance for School Meals Manual states households must report current income on their free and reduced price application. If this income is higher or lower than usual and does not fairly or accurately represent the household’s actual circumstances, the household may project his annual rate of income based on the following: if self-employed, the person may use last year’s income as a “basis to project their current year’s net income” for purposes of completing an application. Net income is determined by subtracting business expenses from gross receipts. Business expenses include the cost of goods purchased, rent, utilities, depreciation charges, wages and salaries paid, and business taxes (not personal Federal, State, or local income taxes). For verification purposes, self-employed persons must submit business or farming papers, such as ledger or tax books for the most recent month.
