5164-6        ANNUALIZATION DETERMINATION

If a household’s total estimated yearly income from all seasonal self-employment income is more than the Self-Employment Income Annualization Standard for the household size, the income is considered sufficient to meet the household’s needs for the entire calendar year.  In these cases, the seasonal self-employment income is annualized (prorated and counted over 12 months).

If the household’s total estimated seasonal self-employment income is equal to or less than their Annualization Standard, each individual’s seasonal self-employment income is budgeted using the policy in this section.

The annualization determination includes the total adjusted gross seasonal self-employment income that all seasonally self-employed household members expect to receive during the current calendar year.

• Do not include any monthly self-employment income or other income in this total.
   

• All household members are included in the household size to determine the appropriate Annualization Standard.  See Addendum – 2.

To make the annualization determination, ask the household if their seasonal self-employment income will exceed the Annualization standard.  Accept the household’s statement of expected yearly income from seasonal self-employment for this determination.

If the household’s seasonal self-employment income is annualized, the family is almost always ineligible for Family Medicaid.  They may reapply at any time and have the annualization of their seasonal self-employment income reevaluated.