When you figure the amount of the annual earnings for each family member, count all earnings from both employment and self-employment for the entire year.
Earnings from employment include all wages, salaries, vacation pay, some kinds of sick pay, commissions, bonuses, fees, tips, and retroactive wage increases. The cash value of any goods or services (such as meals or living quarters) furnished for services performed are also counted as earnings from employment. If the spouse or child is employed by a railroad, include their railroad compensation in their total earnings. Count all amounts before any payroll deductions for taxes, social security, insurance premiums and so on.
Earnings from self-employment mean the person's net income (profit after deduction of allowable business expenses) for the year.
Do not include as earnings any money received for any reason other than work, such as interest from savings, income from investments, gifts, inheritances and pensions or other retirement benefits.