Gig workers and self-employed people can get SNAP, and SNAP counts your profit, not your gross receipts. The state takes what you earned, subtracts the costs of doing business, then gives the same 20% earned income deduction everyone with earnings gets. Many states offer a simpler option: instead of adding up receipts, they deduct a flat percentage of gross income (often 40% to 50%) as your business costs.
That makes a big difference for rideshare and delivery drivers, whose gas and car costs eat a large share of each fare.
How self-employment income is counted
Federal rule 7 CFR 273.11 works like this:
- Add up gross receipts from your work (fares, delivery pay, tips through the app, client payments).
- Subtract allowable business costs.
- Average it over the months the income is meant to cover. Seasonal work is averaged over the year; a new business is averaged over the months it’s been running.
- The result is your self-employment income. SNAP then takes 20% off as the earned income deduction.
| Costs usually allowed | Not allowed |
|---|---|
| Supplies and materials, inventory | Depreciation |
| Equipment purchases | Federal, state and local income taxes |
| Labor you pay others | Retirement savings |
| Business insurance, property taxes on business property | Personal work expenses (covered by the 20% deduction) |
| Interest on income-producing property |
The simplified standard option
Instead of tracking every cost, many states let you take a flat percentage. As of October 2023, 23 states used a method other than actual costs.
| Example state | Standard deduction for business costs |
|---|---|
| Minnesota | 50% of gross self-employment income, or actual costs if documented |
| Ohio | 50%, or actual costs if higher |
| South Dakota | 55%, or actual costs if higher |
Ohio and South Dakota figures come from a 2019 nonprofit survey, so confirm with your state. If your real costs are higher than the standard, ask to use actual costs and bring receipts.
Example: a rideshare driver
Marcus drives for a rideshare app in a state with a 50% standard. He grosses $2,000 a month in fares and tips. He lives alone, pays $900 rent, and his state’s utility allowance is $400. FY2027 figures:
| Step | Math | Result |
|---|---|---|
| Gross receipts | Fares and tips | $2,000 |
| Business costs (50% standard) | $2,000 x 50% | $1,000 |
| Self-employment income | $1,000 | |
| Earned income deduction (20%) | $1,000 – $200 | $800 |
| Standard deduction | $800 – $217 | $583 |
| Excess shelter | $1,300 – half of $583, capped at $769 | $769 |
| Net income | $583 – $769 | $0 |
| Benefit | Maximum for 1 | $306 a month |
Without the self-employment deduction, $2,000 would put him above the $1,729 gross limit for one person and he’d get nothing. The rules treat gig work fairly, but only if you report business costs.
Mileage for drivers
USDA has no gig-specific mileage rule. Some legal aid groups, like Massachusetts Legal Help, tell drivers they may use the IRS business mileage rate (72.5 cents a mile for 2026) or actual car costs split between business and personal miles. Ask your state which it allows, and keep a mileage log either way.
Records to keep
- App earnings summaries (weekly or monthly statements from Uber, Lyft, DoorDash, Instacart and others)
- A mileage log, gas and repair receipts
- Receipts for supplies, phone plan share for work, equipment
- Your tax return (Schedule C) if you file one; many states accept it for yearly income
Work rules for gig workers
| Rule | How gig work fits |
|---|---|
| General work registration | Exempt if you work 30 hours a week or earn at least the federal minimum wage times 30 ($217.50 a week) |
| Time limit (ages 18 to 64, no child under 14) | Need 80 hours a month of work or training. States count gig hours differently: some count actual hours, some accept earnings. Log your hours. |
See SNAP work requirements. If your gig hours fall short, SNAP job training can fill the gap; see SNAP Employment and Training.
Reporting ups and downs
Gig income swings. On simplified reporting you only report between renewals if your total gross income goes over the reporting limit on your notice. Otherwise, update at your 6-month report or renewal. If income drops, report it: it can raise your benefit. See SNAP reporting changes.
Quick answers
Do tips count? Yes, as part of your earnings.
What if I had a loss? A self-employment loss generally counts as $0 income; in some states farm losses can offset other income.
I just started. How do they count it? Your state averages what you’ve earned since starting, or uses what you expect to earn.
Other ways to qualify faster: expedited SNAP. How household income is combined: SNAP household rules. More SNAP help by topic: SNAP and EBT guides.
Sources: eCFR: 7 CFR 273.11 (self-employment income), eCFR: 7 CFR 273.7 (work registration exemptions), USDA: SNAP State Options Report, 16th edition, Minnesota DHS: self-employment guide, FRAC: standard self-employment deduction, Mass Legal Help: SNAP for self-employed and gig workers, USDA: FY2027 cost-of-living adjustments.