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PDFWAC 182-509-0365

MAGI incomeSelf-employment income.

For purposes of determining eligibility for modified adjusted gross income (MAGI)–based Washington apple health (WAH) (see WAC 182-509-0300):
(1) Self-employment income is income earned by a person from running a business, performing a service, selling items that are made, or reselling items with the intent to make a profit. This income can be earned if the person is carrying on a trade or business as a sole proprietor or an independent contractor; a member of a partnership that carries on a trade or business; or otherwise in business for themselves (including a part-time business).
(2) A person is considered to be self-employed if they earn income without having an employer/employee relationship with the individual who pays the income. Factors to consider are:
(a) The person has primary control or has the right to control what they do and how they do their job;
(b) The business aspects of the person's job are controlled by the person and not the payer (this includes things like how the person is paid, whether expenses are reimbursed, or who provides tools/supplies);
(c) The person has a written contract stating that he or she is an independent contractor; or
(d) The person reports his or her income using IRS Schedule C, Schedule C-EZ, Schedule K-1, or Schedule SE.
(3) A person is considered to have an employer/employee relationship when:
(a) The individual the person provides services for has primary control of how the work is done; or
(b) The person receives an IRS Form W-2 to report the income that is earned.
(4) Self-employment does not have to be a licensed business for a person's business or activity to qualify as self-employment. Some examples of self-employment are:
(a) Child care that requires a license under chapter 74.15 RCW;
(b) Driving a taxi cab;
(c) Farming/fishing;
(d) Odd jobs such as mowing lawns, house painting, gutter cleaning, or car care;
(e) Running lodging for roomers or boarders. Roomer income includes money paid to a person for shelter costs by someone not included in the person's household who resides in the same home when:
(i) The person owns or is buying his or her residence; or
(ii) The person rents all or a part of the residence and the total rent charged to all others in the home is more than the total rent obligation of the person.
(f) Running an adult family home;
(g) Providing services such as a massage therapist or a professional escort;
(h) Retainer fees to reserve a bed for a foster child;
(i) Selling home-made items or items that are supplied to the individual;
(j) Selling or donating biological products such as providing blood or reproductive material for profit;
(k) Working as an independent contractor; and
(l) Running a business or trade either as a sole proprietorship or in a partnership.
(5) A person must keep records of his or her self-employment income and deductions and provide this information to the agency upon request.
(6) The agency does not count receipt of money by a member of a federally recognized tribe from exercising federally protected rights or extraction of exempt resources as self-employment income (such as fishing, shell-fishing, or selling timber from protected tribal land). This is considered conversion of a resource. See WAC 182-509-0340.
(7) A person who is an employee of a company or other individual who does the activities listed in subsection (4) of this section as a part of his or her job duties is not considered to be self-employed.
(8) Self-employment income is counted as earned income as described in WAC 182-509-0330.
[Statutory Authority: RCW 41.05.021, Patient Protection and Affordable Care Act (P.L. 111-148), 42 C.F.R. §§ 431, 435, 457, and 45 C.F.R. § 155. WSR 14-01-021, § 182-509-0365, filed 12/9/13, effective 1/9/14.]
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