Kansas Department of Health & Environment

Kansas Family Medical Assistance

Manual (KFMAM)

Eligibility Policy - 7/2/2020

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5330 Self-employment - Self-employment income is earned income received directly from one's own business, trade, or profession. Some guidelines to determine if an individual is self-employed include whether the person: (1) holds himself out as a business (e.g., advertises), (2) decides when and where to work, obtains own jobs or sales, and pays own expenses, (3) has a risk of a profit or loss, and (4) pays his own FICA and income taxes (although this guideline, by itself, does not necessarily establish self-employment). The absence of one or more of these criteria indicates that the activity is not self- employment. Each situation must be evaluated on a case-by-case basis and documented in the case file as to whether a certain income is self-employment or not. An adjusted gross income amount must be determined by deducting income producing costs from the gross earnings.

5330.01 - Income from rental property and other income-producing personal property shall be considered self-employment earned income, regardless of the amount of time engaged in the production of the income.

5330.02 - A loss from self-employment cannot be deducted from other income nor can a net loss of a business be considered as an income producing cost.

5330.03 - When at least one person has wages and at least one person is self-employed, separate calculations are required and the countable incomes are then totaled. Self-employment income shall be considered and averaged. (See 6200)

5330.04 - Payments from a roomer or boarder shall be treated as though it were self- employed earned income.

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