TN 12 (09-93)
NESE generally have the same definition for ET purposes as for coverage purposes.
Business income which is excluded when computing NE is also not counted for ET purposes.
Refer to RS 01803.001 ff. to determine if income is NESE.
Consider NESE to be earnings for ET purposes in the TY such amounts are received.
EXCEPTION: See RS 02505.060 regarding royalties and RS 02505.125 regarding the SEI exclusion provisions of the law. Also, see RS 02505.185 re “director's fees.”
Receipt of NESE means the TY in which the amounts were:
Actually or constructively received if the beneficiary uses the cash method of accounting.
See RS 01801.001 ff.
Accrued to the beneficiary if he uses the accrual method of accounting.