TN 88 (11-23)

SI 02305.096 Developing Net Earnings from Self- Employment (NESE) - RZs

A. Introduction

This section provides procedures for developing recipient allegations about NESE during an RZ interview.

B. Description of RZs Completed on MSSICS Screens

Opening a “REDETERMINTION with or without RECAPs” event creates a MSSICS “path” which guides the interviewer to the appropriate screens to document allegations and evidence relating to NESE, as necessary.

C. Description of Form SSA-8202-BK - Question 5

Question 5 on the SSA-8202-BK is a two-part question:

Since the date above, did you (or your spouse living with you) work?

If “YES,” answer part “b.” If “NO,” go to question 6.

Since the date above, did your earnings from wages or self- employment (and/or the earnings of your spouse living with you) total more than $65 (before deductions) in any month?

D. Description of Form SSA-8203-BK - Question 13

Question 13 on the SSA-8203-BK — Since the date on page 1, have you (or your spouse living with you) been self-employed or expect to be self-employed in the current taxable year?

E. If the answer is “yes,” the individual and or the spouse are directed to provide the following information:

  • Type of business

  • Total gross income for last year

  • Net income for last year

  • Estimated gross income for this year and

  • Estimated net income for this year

F. Procedure —Developing/Documenting Allegations of NESE

Developing allegations of NESE, as follows:

1. Recipients allege no NESE – SSA records agrees

If recipients allege no NESE and other information in SSA records agrees, do not develop NESE any further.

2. Recipients allege no NESE – SSA records conflicts

If recipients allege no NESE and other information in SSA records conflicts:

  • Document termination of self-employment (unless previously documented).

  • Document and verify all previously unverified NESE through the date of termination

3. Recipients allege continuing NESE

If recipients allege continuing NESE:

  • Document and verify, per SI 00820.220, all unverified NESE estimate on the SSR, and alleged NESE not on the SSR through the prior taxable year. If verified earnings do not agree with prior estimates, follow instructions in SI 02305.094H.

  • Document estimates of NESE for the current taxable year per SI 00820.230. See SI 02305.094I. for instructions on determining the effective dates for estimates of income.

  • Document alleged termination of self-employment during the period of review.

  • Input verified NESE.

IMPORTANT: Be alert to fraudulently filed SE tax returns for the purposes of claiming the earned income tax credit (EITC) and follow instructions in RS 01804.525 to process the fraudulent returns.

G. Procedure - Disabled or Blind Recipient

If the recipient is disabled and has NESE, develop IRWE per SI 02305.097.

If the recipient is blind and has NESE, develop blind work expenses per SI 00820.535.

Discuss the possibility of establishing a Plan for Achieving Self-Support. If the person has a PASS, develop for compliance with their plan.

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SI 02305.096 - Developing Net Earnings from Self- Employment (NESE) - RZs - 11/30/2023
Batch run: 11/30/2023