TN 12 (09-93)
RS 02505.050 Determining if Income Is NESE
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.
1. Determining If Income Is NESE
Refer to RS 01803.001 ff. to determine if income is NESE.
2. When NESE Are Counted As ET
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: