Guide for Self-Employed Applicants

• Sole proprietor
• Independent contractor (received a 1099 instead of a w2 for tax filing)
• After hours freelance work
• Arts or craft sales
• Pet / house sitting
• Dog walking
• Babysitting

For some this may be the first time they have had to explain their income and expenses on paper. The templates below can help guide the explanation. People can use these or something of their own creation.

• Year-to-date Revenue and Expense – This reports actual numbers from the year so far. If the year has just started, numbers from the end of the prior year are also needed. At least six months of history must be included. The information entered may be based on bank records, receipts, invoices, or other business records.
• Anticipated Revenue and Expense – This report is like the one above. However, it reports what a person believes will happen in the next 12 months. It is future focused. Looking at the past can be a basis for the future. A person may look at past business or tax records. However, the past may not tell the whole story. Maybe there are new contracts or lines of work that will change the future income. There could also be a decrease for some of these same reasons.

Some people have a hard time knowing what expenses to include. Personal expenses should not be used. Examples include a car payment, rent, and phone costs. These are expenses that would still be there even if the business did not exist. They are not business expenses.