Daily Computation Method

The following steps are used for the daily computation method:

Determine the total gross income earned from the day the self-employment began through the interview date.

Determine the number of days the income was received. The day self-employment begins is the day any part of the self-employment activity occurs (for example, buying supplies, working, earning income, etc.).

Divide the total gross income by the number of days in the period the income was received.

Multiply the daily income by 30 to get the monthly estimate of gross self-employment income.

Determine the total verified self-employment expense paid from the day the self-employment began through the interview date.

Determine the number of days the expense was to cover. Use the same number of days used to calculate income.

Divide the total expense amount by the number of days in the period.

Multiply the daily expense deduction by 30 to get the monthly estimate of the expense.

Subtract monthly expenses from gross monthly income to determine net monthly self-employment.