Wisconsin Department
of Children and Families - Division
of Early Care and Education
Bureau of Child Care Subsidy Administration
Wisconsin Shares Handbook
Income from self-employment must be verified at application and renewal.
Parents who are self-employed must file taxes with the Internal Revenue Service (IRS) for the self-employment to be an approved activity, even if the business does not have earnings above the IRS’ tax filing threshold. Self-employed parents must provide copies of their filed personal and business IRS tax documents, including all schedules and attachments, for the most recent tax year. Agency workers may request verification that the tax forms have been submitted to the IRS if the documents are questionable.
Proof of filing taxes may include:
Email confirmation if the parent filed online
A tax form signed by the tax professional who filed on behalf of the parent
A canceled check if taxes were owed when filing
Bank statements clearly showing a deposit from the IRS
Transcript of tax return from the IRS
If verification appears questionable or needs clarification, agency workers must request additional supporting evidence, such as receipts, contracts, or other documentation of income and expenses, to verify that the parent is engaged in self-employment (see 7.6).
If self-employment taxes were filed in the previous year, the previous year’s tax information must be used if the parent is applying or completing a Wisconsin Shares renewal and:
It is prior to the next tax filing deadline; or
The parent has filed for a tax filing extension.
| Note: Verification of filing a tax filing extension is not required unless questionable. |
If a parent states that the business has had a significant change and the previous year’s taxes do not reflect their current income, the parent must provide the previous year’s taxes and Self-Employment Income Report Forms (SEIRFs) (F-00107) that cover each month since the significant change, up to a maximum of 12 months.
If the business has not yet filed taxes, parents must provide SEIRFs for at least three (3) months up to a maximum of 12 months depending on the business start month.
Scenario |
Verification |
| Business is new and taxes are not yet filed | SEIRFs |
| Business' previous year's taxes are not yet filed | Mostly recently filed taxes |
| Business' previous year's taxes are filed | Previous year's taxes |
| Business' previous year's taxes are filed and a significant change is reported | Previous year's taxes and SEIRFs |
| Example 1 (Ongoing business): Karen applied for Wisconsin Shares in January 2022. She has been operating her own salon for the past five (5) years. At application, her 2021 taxes have not yet been filed. Karen must submit her 2020 taxes. If there has been a significant change, Karen can submit her 2020 taxes and SEIRFs for any months since the significant change. If Karen has never filed taxes, then she is not eligible for Wisconsin Shares. |
| Example 2 (Significant change): Janette is a self-employed hair stylist. The person who owns the salon retired and Janette decided to purchase the business instead of renting a chair. She contacts her worker and reports this significant change. The taxes she submitted with her renewal are no longer accurate. The agency worker enters the date of the significant change on the CWW Self-Employment page. CWW will generate the Notice of Proof Needed along with the SEIRFs for all months since the date of the significant change. |
| Example 3 (New business with limited history): Donna opened a new business in May and is applying for Wisconsin Shares in June. The agency worker enters May for “When did this business begin?” on the CWW Self-Employment page and indicates that taxes have not been filed. CWW will generate a Notice of Proof Needed along with SEIRFs for May, June, and July. Donna must complete the SEIRFs using the first month’s actual income and expenses and anticipated income and expenses in the next two (2) months. |
This section last updated 10/1/2023