From 3f23308a7b64e2f9cea44ede465c03a9608f9a21 Mon Sep 17 00:00:00 2001
From: Ziming <ziming@policyengine.org>
Date: Mon, 28 Sep 2026 16:46:02 -0400
Subject: [PATCH 1/8] Add shared work expense, gross self-employment, and
 dwelling inputs

---
 changelog.d/liheap-shared-inputs.added.md     |  1 +
 .../expense/housing/dwelling_type.py          | 21 +++++++++++++++++++
 .../household/expense/person/work_expense.py  |  9 ++++++++
 .../self_employment_gross_income.py           | 16 ++++++++++++++
 4 files changed, 47 insertions(+)
 create mode 100644 changelog.d/liheap-shared-inputs.added.md
 create mode 100644 policyengine_us/variables/household/expense/housing/dwelling_type.py
 create mode 100644 policyengine_us/variables/household/expense/person/work_expense.py
 create mode 100644 policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py

diff --git a/changelog.d/liheap-shared-inputs.added.md b/changelog.d/liheap-shared-inputs.added.md
new file mode 100644
index 00000000000..d5b2982c9ab
--- /dev/null
+++ b/changelog.d/liheap-shared-inputs.added.md
@@ -0,0 +1 @@
+Add shared inputs for person-level work expenses and gross self-employment receipts, and household dwelling type.
diff --git a/policyengine_us/variables/household/expense/housing/dwelling_type.py b/policyengine_us/variables/household/expense/housing/dwelling_type.py
new file mode 100644
index 00000000000..d52faf3b21b
--- /dev/null
+++ b/policyengine_us/variables/household/expense/housing/dwelling_type.py
@@ -0,0 +1,21 @@
+from policyengine_us.model_api import *
+
+
+class DwellingType(Enum):
+    HOUSE = "House, including modular homes"
+    DUPLEX = "Duplex"
+    APARTMENT = "Apartment"
+    MOBILE_HOME = "Mobile home"
+    TRAILER = "Trailer"
+    OTHER = "Other dwelling"
+    UNSPECIFIED = "Unspecified"
+
+
+class dwelling_type(Variable):
+    value_type = Enum
+    entity = Household
+    possible_values = DwellingType
+    default_value = DwellingType.UNSPECIFIED
+    definition_period = YEAR
+    label = "Dwelling type"
+    reference = "https://data.census.gov/table/ACSDT1Y2024.B25024"
diff --git a/policyengine_us/variables/household/expense/person/work_expense.py b/policyengine_us/variables/household/expense/person/work_expense.py
new file mode 100644
index 00000000000..03a885e3201
--- /dev/null
+++ b/policyengine_us/variables/household/expense/person/work_expense.py
@@ -0,0 +1,9 @@
+from policyengine_us.model_api import *
+
+
+class work_expense(Variable):
+    value_type = float
+    entity = Person
+    definition_period = YEAR
+    unit = USD
+    label = "Work expenses"
diff --git a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
new file mode 100644
index 00000000000..aa7ef8359b8
--- /dev/null
+++ b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
@@ -0,0 +1,16 @@
+from policyengine_us.model_api import *
+
+
+class self_employment_gross_income(Variable):
+    value_type = float
+    entity = Person
+    definition_period = YEAR
+    unit = USD
+    # Receipts before business expenses, including farm and non-farm businesses.
+    # Missing receipts must be distinguishable from an explicitly reported zero.
+    default_value = -1
+    label = "Gross self-employment receipts"
+    reference = (
+        "https://www.irs.gov/instructions/i1040sc",
+        "https://www.irs.gov/instructions/i1040sf",
+    )

From 08b6a0b3482c80b9242257ec92e850a518e13ef5 Mon Sep 17 00:00:00 2001
From: Ziming <ziming@policyengine.org>
Date: Mon, 28 Sep 2026 16:51:17 -0400
Subject: [PATCH 2/8] Use zero default for gross self-employment input

---
 .../person/self_employment/self_employment_gross_income.py      | 2 --
 1 file changed, 2 deletions(-)

diff --git a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
index aa7ef8359b8..83441f791a4 100644
--- a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
+++ b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
@@ -7,8 +7,6 @@ class self_employment_gross_income(Variable):
     definition_period = YEAR
     unit = USD
     # Receipts before business expenses, including farm and non-farm businesses.
-    # Missing receipts must be distinguishable from an explicitly reported zero.
-    default_value = -1
     label = "Gross self-employment receipts"
     reference = (
         "https://www.irs.gov/instructions/i1040sc",

From 8a131c0a200241d8eba4e668411d61269c209d71 Mon Sep 17 00:00:00 2001
From: Ziming <ziming@policyengine.org>
Date: Mon, 28 Sep 2026 19:09:57 -0400
Subject: [PATCH 3/8] Derive shared self-employment income and keep dwelling
 types state-specific

---
 changelog.d/liheap-shared-inputs.added.md     |  2 +-
 .../self_employment_gross_income.yaml         | 43 +++++++++++++++++++
 .../expense/housing/dwelling_type.py          | 21 ---------
 .../household/expense/person/work_expense.py  |  3 ++
 .../self_employment_gross_income.py           | 18 +++++++-
 5 files changed, 63 insertions(+), 24 deletions(-)
 create mode 100644 policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml
 delete mode 100644 policyengine_us/variables/household/expense/housing/dwelling_type.py

diff --git a/changelog.d/liheap-shared-inputs.added.md b/changelog.d/liheap-shared-inputs.added.md
index d5b2982c9ab..0699f4506f3 100644
--- a/changelog.d/liheap-shared-inputs.added.md
+++ b/changelog.d/liheap-shared-inputs.added.md
@@ -1 +1 @@
-Add shared inputs for person-level work expenses and gross self-employment receipts, and household dwelling type.
+Add a shared person-level work expense input and derive gross self-employment income from existing net income and reported business expenses.
diff --git a/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml b/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml
new file mode 100644
index 00000000000..da15f4ebfae
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml
@@ -0,0 +1,43 @@
+- name: Case 1, reconstruct business income without including wages or changing net profit.
+  period: 2026
+  input:
+    employment_income: 36_000
+    self_employment_income: 18_000
+    work_expense: 6_000
+  output:
+    self_employment_gross_income: 24_000
+    self_employment_income: 18_000
+
+- name: Case 2, business expenses cover regular, SSTB, and farm self-employment together.
+  period: 2026
+  input:
+    self_employment_income: 6_000
+    sstb_self_employment_income: 3_000
+    farm_operations_income: 5_000
+    work_expense: 4_000
+  output:
+    self_employment_gross_income: 18_000
+
+- name: Case 3, preserve a business loss when adding back its expenses.
+  period: 2026
+  input:
+    self_employment_income: -3_000
+    work_expense: 12_000
+  output:
+    self_employment_gross_income: 9_000
+    self_employment_income: -3_000
+
+- name: Case 4, omitted expenses use the ordinary zero default.
+  period: 2026
+  input:
+    self_employment_income: 12_000
+  output:
+    self_employment_gross_income: 12_000
+    work_expense: 0
+
+- name: Case 5, a loss without reported expenses cannot create negative gross income.
+  period: 2026
+  input:
+    self_employment_income: -3_000
+  output:
+    self_employment_gross_income: 0
diff --git a/policyengine_us/variables/household/expense/housing/dwelling_type.py b/policyengine_us/variables/household/expense/housing/dwelling_type.py
deleted file mode 100644
index d52faf3b21b..00000000000
--- a/policyengine_us/variables/household/expense/housing/dwelling_type.py
+++ /dev/null
@@ -1,21 +0,0 @@
-from policyengine_us.model_api import *
-
-
-class DwellingType(Enum):
-    HOUSE = "House, including modular homes"
-    DUPLEX = "Duplex"
-    APARTMENT = "Apartment"
-    MOBILE_HOME = "Mobile home"
-    TRAILER = "Trailer"
-    OTHER = "Other dwelling"
-    UNSPECIFIED = "Unspecified"
-
-
-class dwelling_type(Variable):
-    value_type = Enum
-    entity = Household
-    possible_values = DwellingType
-    default_value = DwellingType.UNSPECIFIED
-    definition_period = YEAR
-    label = "Dwelling type"
-    reference = "https://data.census.gov/table/ACSDT1Y2024.B25024"
diff --git a/policyengine_us/variables/household/expense/person/work_expense.py b/policyengine_us/variables/household/expense/person/work_expense.py
index 03a885e3201..3673b6efae1 100644
--- a/policyengine_us/variables/household/expense/person/work_expense.py
+++ b/policyengine_us/variables/household/expense/person/work_expense.py
@@ -7,3 +7,6 @@ class work_expense(Variable):
     definition_period = YEAR
     unit = USD
     label = "Work expenses"
+    # For self-employment, report the business expenses already deducted from
+    # the corresponding net income, across farm and non-farm businesses.
+    # Exclude employee expenses and personal taxes from this business amount.
diff --git a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
index 83441f791a4..55c5160fa65 100644
--- a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
+++ b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
@@ -6,9 +6,23 @@ class self_employment_gross_income(Variable):
     entity = Person
     definition_period = YEAR
     unit = USD
-    # Receipts before business expenses, including farm and non-farm businesses.
-    label = "Gross self-employment receipts"
+    label = "Gross self-employment income"
     reference = (
         "https://www.irs.gov/instructions/i1040sc",
         "https://www.irs.gov/instructions/i1040sf",
     )
+
+    def formula(person, period, parameters):
+        # Add back the same business expenses deducted from the reported net
+        # income. Preserve losses until after expenses have been added back.
+        # With no reported expenses, this assumes expenses are zero.
+        gross = add(
+            person,
+            period,
+            [
+                "total_self_employment_income",
+                "farm_operations_income",
+                "work_expense",
+            ],
+        )
+        return max_(gross, 0)

From 504a7b2d4d8ba1729d50c9efcb04ee06cbf9f386 Mon Sep 17 00:00:00 2001
From: Ziming <ziming@policyengine.org>
Date: Mon, 28 Sep 2026 21:20:16 -0400
Subject: [PATCH 4/8] Fix issues from review: document work expense and gross
 self-employment income, add boundary tests

Move the work_expense definition into documentation metadata and label it as
self-employment work expenses; state that the input includes cost of goods sold so
self_employment_gross_income reconstructs gross receipts; document the covered
sources, the combined zero floor, the SNAP input relationship and the
under-reporting bias; add IRS form references; append three YAML cases (mixed-sign
floor, expenses without a business, cost of goods sold).

Co-Authored-By: Claude Fable 5.1 <noreply@anthropic.com>
---
 .../self_employment_gross_income.yaml         | 25 +++++++++++++++++++
 .../household/expense/person/work_expense.py  | 16 +++++++++---
 .../self_employment_gross_income.py           | 19 ++++++++++++++
 3 files changed, 56 insertions(+), 4 deletions(-)

diff --git a/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml b/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml
index da15f4ebfae..9d18b1ddf64 100644
--- a/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml
+++ b/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml
@@ -41,3 +41,28 @@
     self_employment_income: -3_000
   output:
     self_employment_gross_income: 0
+
+- name: Case 6, a farm loss offsets non-farm profit under the combined zero floor.
+  period: 2026
+  input:
+    self_employment_income: 6_000
+    farm_operations_income: -10_000
+  output:
+    self_employment_gross_income: 0
+    farm_operations_income: -10_000
+
+- name: Case 7, employee work expenses do not belong in this business-cost input, which is added back unconditionally.
+  period: 2026
+  input:
+    employment_income: 36_000
+    work_expense: 6_000
+  output:
+    self_employment_gross_income: 6_000
+
+- name: Case 8, cost of goods sold is part of the add-back so the result is gross receipts.
+  period: 2026
+  input:
+    self_employment_income: 15_000
+    work_expense: 85_000
+  output:
+    self_employment_gross_income: 100_000
diff --git a/policyengine_us/variables/household/expense/person/work_expense.py b/policyengine_us/variables/household/expense/person/work_expense.py
index 3673b6efae1..0bda29ce11e 100644
--- a/policyengine_us/variables/household/expense/person/work_expense.py
+++ b/policyengine_us/variables/household/expense/person/work_expense.py
@@ -6,7 +6,15 @@ class work_expense(Variable):
     entity = Person
     definition_period = YEAR
     unit = USD
-    label = "Work expenses"
-    # For self-employment, report the business expenses already deducted from
-    # the corresponding net income, across farm and non-farm businesses.
-    # Exclude employee expenses and personal taxes from this business amount.
+    label = "Self-employment work expenses"
+    documentation = (
+        "Self-employment business costs already deducted in arriving at the "
+        "reported net self-employment income, combined across all of the "
+        "person's farm and non-farm businesses. Include every cost deducted on "
+        "Schedule C (Part II expenses, the line 30 business use of home, and "
+        "Part III cost of goods sold) and on Schedule F (Part II expenses and "
+        "the line 1b cost or other basis of resale items), so that net income "
+        "plus this input equals gross receipts. Exclude employee work-related "
+        "expenses such as commuting, uniforms, and tools, and exclude personal "
+        "income and self-employment taxes. Treated as zero when not reported."
+    )
diff --git a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
index 55c5160fa65..6e001df6e99 100644
--- a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
+++ b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
@@ -7,9 +7,28 @@ class self_employment_gross_income(Variable):
     definition_period = YEAR
     unit = USD
     label = "Gross self-employment income"
+    documentation = (
+        "Gross self-employment receipts, reconstructed as net Schedule C "
+        "(regular and SSTB) and Schedule F profit plus work_expense, the "
+        "business costs already deducted in arriving at that net profit. Covers "
+        "sole-proprietor Schedule C and Schedule F businesses only; "
+        "partnership_self_employment_net_earnings is excluded by design because "
+        "partnership expenses are deducted on Form 1065 and that variable is not "
+        "an additional gross source, so consumers needing partnership earnings "
+        "add it separately. The zero floor applies to the combined farm plus "
+        "non-farm sum. work_expense is the person-level counterpart of the "
+        "SPM-unit SNAP input snap_self_employment_income_expense and is not "
+        "derived from it. Omitted expenses are assumed to be zero, which biases "
+        "the result downward and zeroes business losses; with no data source for "
+        "work_expense, microsimulation yields max(net, 0). This variable reads "
+        "total_self_employment_income, so it is post-labor-supply-response, "
+        "unlike the pre-response snap_gross_self_employment_income_person."
+    )
     reference = (
         "https://www.irs.gov/instructions/i1040sc",
         "https://www.irs.gov/instructions/i1040sf",
+        "https://www.irs.gov/pub/irs-pdf/f1040sc.pdf",
+        "https://www.irs.gov/pub/irs-pdf/f1040sf.pdf",
     )
 
     def formula(person, period, parameters):

From afd9c94a7af6a5e9e1c04c135529fbaec92f4673 Mon Sep 17 00:00:00 2001
From: Ziming <ziming@policyengine.org>
Date: Mon, 28 Sep 2026 23:59:00 -0400
Subject: [PATCH 5/8] Exclude cost of goods sold from self-employment expenses
 and floor gross income per source

Rename work_expense to self_employment_expense so the input does not read as
the employee work-expense deduction used across TANF programs. Define it as
business expenses other than cost of goods sold, so net profit plus the input
equals Schedule C line 7 and Schedule F line 9 gross income.

Floor gross self-employment income at the sum of each source's net profit
floored at zero, so a loss in one source does not offset another when expenses
are omitted. Update the tests for both changes and add cases for complete
expenses, partial expenses, and a regular loss alongside SSTB profit.

Co-Authored-By: Claude Fable 5.1 <noreply@anthropic.com>
---
 changelog.d/liheap-shared-inputs.added.md     |  2 +-
 .../self_employment_gross_income.yaml         | 52 +++++++++++++----
 .../expense/person/self_employment_expense.py | 27 +++++++++
 .../household/expense/person/work_expense.py  | 20 -------
 .../self_employment_gross_income.py           | 56 +++++++++----------
 5 files changed, 96 insertions(+), 61 deletions(-)
 create mode 100644 policyengine_us/variables/household/expense/person/self_employment_expense.py
 delete mode 100644 policyengine_us/variables/household/expense/person/work_expense.py

diff --git a/changelog.d/liheap-shared-inputs.added.md b/changelog.d/liheap-shared-inputs.added.md
index 0699f4506f3..8c905719109 100644
--- a/changelog.d/liheap-shared-inputs.added.md
+++ b/changelog.d/liheap-shared-inputs.added.md
@@ -1 +1 @@
-Add a shared person-level work expense input and derive gross self-employment income from existing net income and reported business expenses.
+Add a shared person-level self-employment expense input and derive gross self-employment income from existing net income and reported business expenses other than cost of goods sold.
diff --git a/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml b/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml
index 9d18b1ddf64..ba845cf97f6 100644
--- a/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml
+++ b/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml
@@ -3,7 +3,7 @@
   input:
     employment_income: 36_000
     self_employment_income: 18_000
-    work_expense: 6_000
+    self_employment_expense: 6_000
   output:
     self_employment_gross_income: 24_000
     self_employment_income: 18_000
@@ -14,7 +14,7 @@
     self_employment_income: 6_000
     sstb_self_employment_income: 3_000
     farm_operations_income: 5_000
-    work_expense: 4_000
+    self_employment_expense: 4_000
   output:
     self_employment_gross_income: 18_000
 
@@ -22,7 +22,7 @@
   period: 2026
   input:
     self_employment_income: -3_000
-    work_expense: 12_000
+    self_employment_expense: 12_000
   output:
     self_employment_gross_income: 9_000
     self_employment_income: -3_000
@@ -33,7 +33,7 @@
     self_employment_income: 12_000
   output:
     self_employment_gross_income: 12_000
-    work_expense: 0
+    self_employment_expense: 0
 
 - name: Case 5, a loss without reported expenses cannot create negative gross income.
   period: 2026
@@ -42,27 +42,59 @@
   output:
     self_employment_gross_income: 0
 
-- name: Case 6, a farm loss offsets non-farm profit under the combined zero floor.
+- name: Case 6, a farm loss does not offset non-farm profit when expenses are omitted.
   period: 2026
   input:
     self_employment_income: 6_000
     farm_operations_income: -10_000
   output:
-    self_employment_gross_income: 0
+    # Non-farm floor 6,000 + farm floor 0; the reconstruction is -4,000.
+    self_employment_gross_income: 6_000
     farm_operations_income: -10_000
 
 - name: Case 7, employee work expenses do not belong in this business-cost input, which is added back unconditionally.
   period: 2026
   input:
     employment_income: 36_000
-    work_expense: 6_000
+    self_employment_expense: 6_000
   output:
     self_employment_gross_income: 6_000
 
-- name: Case 8, cost of goods sold is part of the add-back so the result is gross receipts.
+- name: Case 8, cost of goods sold stays out of the add-back, so the result is gross income after it.
   period: 2026
   input:
+    # Receipts 100,000 - cost of goods sold 60,000 = gross income 40,000.
+    # Gross income 40,000 - other expenses 25,000 = net profit 15,000.
     self_employment_income: 15_000
-    work_expense: 85_000
+    self_employment_expense: 25_000
+  output:
+    self_employment_gross_income: 40_000
+
+- name: Case 9, fully reported expenses reconstruct a farm loss alongside non-farm profit.
+  period: 2026
+  input:
+    self_employment_income: 6_000
+    farm_operations_income: -10_000
+    self_employment_expense: 12_000
+  output:
+    # 6,000 - 10,000 + 12,000 = 8,000, above the 6,000 per-source floor.
+    self_employment_gross_income: 8_000
+
+- name: Case 10, partially reported expenses fall back to the per-source floor.
+  period: 2026
+  input:
+    self_employment_income: 6_000
+    farm_operations_income: -10_000
+    self_employment_expense: 3_000
+  output:
+    # The reconstruction is -1,000, below the 6,000 per-source floor.
+    self_employment_gross_income: 6_000
+
+- name: Case 11, a regular business loss does not offset SSTB profit when expenses are omitted.
+  period: 2026
+  input:
+    self_employment_income: -4_000
+    sstb_self_employment_income: 9_000
   output:
-    self_employment_gross_income: 100_000
+    # Regular floor 0 + SSTB floor 9,000; the reconstruction is 5,000.
+    self_employment_gross_income: 9_000
diff --git a/policyengine_us/variables/household/expense/person/self_employment_expense.py b/policyengine_us/variables/household/expense/person/self_employment_expense.py
new file mode 100644
index 00000000000..fdc546d5135
--- /dev/null
+++ b/policyengine_us/variables/household/expense/person/self_employment_expense.py
@@ -0,0 +1,27 @@
+from policyengine_us.model_api import *
+
+
+class self_employment_expense(Variable):
+    value_type = float
+    entity = Person
+    definition_period = YEAR
+    unit = USD
+    label = "Self-employment business expenses"
+    documentation = (
+        "Business expenses, other than cost of goods sold, deducted in arriving "
+        "at the person's reported net self-employment income, combined across "
+        "the person's farm and non-farm sole proprietorships: Schedule C line "
+        "28 total expenses plus line 30 business use of the home, and Schedule "
+        "F line 33 total expenses. Exclude cost of goods sold (Schedule C line "
+        "4; Schedule F line 1b, or Part III line 49 for accrual-method farms), "
+        "so that net profit plus this input equals Schedule C line 7 and "
+        "Schedule F line 9 gross income. Exclude employee work-related "
+        "expenses and personal income and self-employment taxes. Treated as "
+        "zero when not reported."
+    )
+    reference = (
+        "https://www.irs.gov/instructions/i1040sc",
+        "https://www.irs.gov/instructions/i1040sf",
+        "https://www.irs.gov/pub/irs-pdf/f1040sc.pdf#page=1",
+        "https://www.irs.gov/pub/irs-pdf/f1040sf.pdf#page=1",
+    )
diff --git a/policyengine_us/variables/household/expense/person/work_expense.py b/policyengine_us/variables/household/expense/person/work_expense.py
deleted file mode 100644
index 0bda29ce11e..00000000000
--- a/policyengine_us/variables/household/expense/person/work_expense.py
+++ /dev/null
@@ -1,20 +0,0 @@
-from policyengine_us.model_api import *
-
-
-class work_expense(Variable):
-    value_type = float
-    entity = Person
-    definition_period = YEAR
-    unit = USD
-    label = "Self-employment work expenses"
-    documentation = (
-        "Self-employment business costs already deducted in arriving at the "
-        "reported net self-employment income, combined across all of the "
-        "person's farm and non-farm businesses. Include every cost deducted on "
-        "Schedule C (Part II expenses, the line 30 business use of home, and "
-        "Part III cost of goods sold) and on Schedule F (Part II expenses and "
-        "the line 1b cost or other basis of resale items), so that net income "
-        "plus this input equals gross receipts. Exclude employee work-related "
-        "expenses such as commuting, uniforms, and tools, and exclude personal "
-        "income and self-employment taxes. Treated as zero when not reported."
-    )
diff --git a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
index 6e001df6e99..2b237c0c8d2 100644
--- a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
+++ b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
@@ -8,40 +8,36 @@ class self_employment_gross_income(Variable):
     unit = USD
     label = "Gross self-employment income"
     documentation = (
-        "Gross self-employment receipts, reconstructed as net Schedule C "
-        "(regular and SSTB) and Schedule F profit plus work_expense, the "
-        "business costs already deducted in arriving at that net profit. Covers "
-        "sole-proprietor Schedule C and Schedule F businesses only; "
-        "partnership_self_employment_net_earnings is excluded by design because "
-        "partnership expenses are deducted on Form 1065 and that variable is not "
-        "an additional gross source, so consumers needing partnership earnings "
-        "add it separately. The zero floor applies to the combined farm plus "
-        "non-farm sum. work_expense is the person-level counterpart of the "
-        "SPM-unit SNAP input snap_self_employment_income_expense and is not "
-        "derived from it. Omitted expenses are assumed to be zero, which biases "
-        "the result downward and zeroes business losses; with no data source for "
-        "work_expense, microsimulation yields max(net, 0). This variable reads "
-        "total_self_employment_income, so it is post-labor-supply-response, "
-        "unlike the pre-response snap_gross_self_employment_income_person."
+        "Schedule C line 7 and Schedule F line 9 gross income (receipts after "
+        "cost of goods sold and before other business expenses), reconstructed "
+        "as net Schedule C (regular and SSTB) and Schedule F profit plus "
+        "self_employment_expense. Covers sole-proprietor Schedule C and "
+        "Schedule F businesses only; partnership_self_employment_net_earnings "
+        "is excluded because partnership expenses are deducted on Form 1065, "
+        "so consumers needing partnership earnings add it separately. Each "
+        "source's gross income is at least its net profit floored at zero, so "
+        "the result is never below the sum of those floors: a loss in one "
+        "source does not offset another when expenses are omitted. With "
+        "complete expenses the reconstruction is exact; with none, as in "
+        "microsimulation, the result is the sum of the per-source floors. "
+        "The non-farm sources are post-labor-supply-response."
     )
     reference = (
         "https://www.irs.gov/instructions/i1040sc",
         "https://www.irs.gov/instructions/i1040sf",
-        "https://www.irs.gov/pub/irs-pdf/f1040sc.pdf",
-        "https://www.irs.gov/pub/irs-pdf/f1040sf.pdf",
+        "https://www.irs.gov/pub/irs-pdf/f1040sc.pdf#page=1",
+        "https://www.irs.gov/pub/irs-pdf/f1040sf.pdf#page=1",
     )
 
     def formula(person, period, parameters):
-        # Add back the same business expenses deducted from the reported net
-        # income. Preserve losses until after expenses have been added back.
-        # With no reported expenses, this assumes expenses are zero.
-        gross = add(
-            person,
-            period,
-            [
-                "total_self_employment_income",
-                "farm_operations_income",
-                "work_expense",
-            ],
-        )
-        return max_(gross, 0)
+        sources = [
+            "self_employment_income",
+            "sstb_self_employment_income",
+            "farm_operations_income",
+        ]
+        # Add back the expenses deducted from net profit, preserving losses
+        # until after the add-back.
+        reconstructed = add(person, period, sources + ["self_employment_expense"])
+        # Each source's gross income is at least its net profit floored at zero.
+        source_floor = sum(max_(person(source, period), 0) for source in sources)
+        return max_(reconstructed, source_floor)

From 49ff1c8cc2681420747548ce471acc2c0f29561b Mon Sep 17 00:00:00 2001
From: Ziming <ziming@policyengine.org>
Date: Tue, 29 Sep 2026 12:22:20 -0400
Subject: [PATCH 6/8] Document self-employment income reconstruction and expand
 regression coverage

---
 changelog.d/liheap-shared-inputs.added.md     |  2 +-
 docs/_toc.yml                                 |  1 +
 docs/usage/self-employment-income.md          | 85 +++++++++++++++++++
 .../self_employment_gross_income.yaml         | 75 ++++++++++++++++
 .../expense/person/self_employment_expense.py | 13 ++-
 .../self_employment_gross_income.py           | 36 +++++---
 6 files changed, 194 insertions(+), 18 deletions(-)
 create mode 100644 docs/usage/self-employment-income.md

diff --git a/changelog.d/liheap-shared-inputs.added.md b/changelog.d/liheap-shared-inputs.added.md
index 8c905719109..f3b88f10ffe 100644
--- a/changelog.d/liheap-shared-inputs.added.md
+++ b/changelog.d/liheap-shared-inputs.added.md
@@ -1 +1 @@
-Add a shared person-level self-employment expense input and derive gross self-employment income from existing net income and reported business expenses other than cost of goods sold.
+Add a shared person-level self-employment expense input and derive gross self-employment income from existing net income and reported business expenses other than cost of goods sold. Document the one-way calculation and distinguish tax-expense add-backs from program-specific allowable deductions.
diff --git a/docs/_toc.yml b/docs/_toc.yml
index b6496e344f2..a9a5fab1ff3 100644
--- a/docs/_toc.yml
+++ b/docs/_toc.yml
@@ -65,6 +65,7 @@ parts:
     chapters:
       - file: usage/microsimulation
       - file: usage/parameter-discovery
+      - file: usage/self-employment-income
       - file: usage/speed
   - caption: Examples
     chapters:
diff --git a/docs/usage/self-employment-income.md b/docs/usage/self-employment-income.md
new file mode 100644
index 00000000000..65096511965
--- /dev/null
+++ b/docs/usage/self-employment-income.md
@@ -0,0 +1,85 @@
+# Self-employment income
+
+The shared variables reconstruct business gross income from existing net-income
+amounts. Benefit programs apply their own deductions after that reconstruction.
+
+| Variable | Meaning |
+| --- | --- |
+| `employment_income` | Employee wages, separate from business income. |
+| `self_employment_income` | Non-farm, non-SSTB net self-employment income. |
+| `sstb_self_employment_income` | Net income from a specified service trade or business. |
+| `farm_operations_income` | Net income from active farming operations. |
+| `self_employment_expense` | Expenses deducted to obtain the three net amounts above, excluding cost of goods sold. |
+| `self_employment_gross_income` | Their reconstructed gross income after cost of goods sold and before other business expenses, subject to the floor below. |
+
+These amounts are annual, person-level values. The two non-farm net-income
+variables include labor-supply responses.
+
+## Formula direction
+
+The accounting reconstruction is:
+
+```text
+net_income = self_employment_income
+           + sstb_self_employment_income
+           + farm_operations_income
+
+reconstructed_gross = net_income + self_employment_expense
+```
+
+The gross-income formula also enforces a floor equal to the sum of the three net
+sources individually floored at zero. This is a fallback when expenses are
+missing or incomplete. For example, $6,000 non-farm profit and a $10,000 farm loss
+with no expenses supplied produce $6,000, rather than a negative gross amount.
+This floor is a modeling assumption, not an IRS rule. Tax-reported gross income
+can be negative, for example when cost of goods sold exceeds sales and other
+income. Complete expense information therefore reproduces the tax-form gross
+amount only when the floor does not bind and the reported net profit has not
+already been adjusted by tax loss limitations.
+
+The dependency goes from net income and expenses to gross income. Do not add a
+reverse formula deriving the existing net-income variables from gross income:
+that would create a circular dependency. Supplying gross income directly does
+not infer net income or expenses; callers still supply net amounts for tax
+calculations.
+
+## Program deductions
+
+For a program using a standard percentage deduction, the consumer follows this
+pattern; these names are placeholders for program-specific variables:
+
+```text
+program_expense_deduction = applicable_gross_income * program_rate
+program_countable_self_employment_income =
+    max(0, applicable_gross_income - program_expense_deduction)
+```
+
+For example, net profit of $15,000 plus $25,000 of expenses reconstructs $40,000
+of gross income. A 25% standard deduction leaves $30,000 of countable income.
+The original $25,000 of expenses is not deducted a second time. The program's
+rate belongs in its parameters.
+
+Programs permitting actual expenses must identify the costs their own rules
+allow. `self_employment_expense` contains tax-return expense add-backs and is not
+a universal benefit-program deduction. Any actual-cost election, loss treatment,
+averaging period, and later earned-income disregard also belong in the program
+calculation. Combine wages and self-employment income only after applying their
+respective rules.
+
+## Coverage and missing information
+
+- The expense input defaults to zero. An omitted answer is not evidence of zero
+  actual expenses, so the derived amount should not be presented as verified
+  gross income without the necessary source information.
+- The gross amount is after cost of goods sold. It does not reconstruct gross
+  receipts before that accounting step.
+- The aggregate covers Schedule C and Schedule F income. It excludes
+  `partnership_self_employment_net_earnings` and does not preserve a gross-income
+  breakdown between farm and non-farm businesses. Consumers requiring those
+  distinctions need additional information.
+- The floor applies to the three income categories, not to each individual
+  business within a category. It does not implement program-specific loss rules.
+
+The accounting definitions follow [Schedule C](https://www.irs.gov/pub/irs-pdf/f1040sc.pdf)
+and [Schedule F](https://www.irs.gov/pub/irs-pdf/f1040sf.pdf). Their tax definitions
+do not determine which income and expenses a benefit program must count.
diff --git a/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml b/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml
index ba845cf97f6..19519a178ce 100644
--- a/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml
+++ b/policyengine_us/tests/policy/baseline/household/income/person/self_employment/self_employment_gross_income.yaml
@@ -98,3 +98,78 @@
   output:
     # Regular floor 0 + SSTB floor 9,000; the reconstruction is 5,000.
     self_employment_gross_income: 9_000
+
+- name: Case 12, reconstruct gross from the existing net-income chain without changing wages or the SE tax base.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    employment_income: 36_000
+    self_employment_income_before_lsr: 15_000
+    self_employment_expense: 25_000
+  output:
+    self_employment_gross_income: 40_000
+    self_employment_income: 15_000
+    employment_income: 36_000
+    # The tax base still uses net profit: 15,000 * 0.9235.
+    taxable_self_employment_income: 13_852.50
+
+- name: Case 13, directly supplied gross income does not infer net profit or expenses.
+  period: 2026
+  input:
+    self_employment_gross_income: 40_000
+  output:
+    self_employment_gross_income: 40_000
+    self_employment_income: 0
+    sstb_self_employment_income: 0
+    farm_operations_income: 0
+    self_employment_expense: 0
+    taxable_self_employment_income: 0
+
+- name: Case 14, partnership earnings remain separate from reconstructed sole-proprietor gross income.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    self_employment_income_before_lsr: 10_000
+    partnership_self_employment_net_earnings: 5_000
+    self_employment_expense: 3_000
+  output:
+    self_employment_gross_income: 13_000
+    partnership_self_employment_net_earnings: 5_000
+    # Partnership SE earnings remain in the tax base, not in the add-back.
+    taxable_self_employment_income: 13_852.50
+
+- name: Case 15, expense reconstruction and loss floors operate independently for each person.
+  period: 2026
+  input:
+    people:
+      person1:
+        self_employment_income_before_lsr: 15_000
+        self_employment_expense: 25_000
+      person2:
+        sstb_self_employment_income_before_lsr: -3_000
+        self_employment_expense: 12_000
+      person3:
+        self_employment_income_before_lsr: 6_000
+        farm_operations_income: -10_000
+        self_employment_expense: 3_000
+      person4:
+        employment_income: 36_000
+  output:
+    self_employment_gross_income: [40_000, 9_000, 6_000, 0]
+    self_employment_income: [15_000, 0, 6_000, 0]
+    sstb_self_employment_income: [0, -3_000, 0, 0]
+    farm_operations_income: [0, 0, -10_000, 0]
+    employment_income: [0, 0, 0, 36_000]
+
+- name: Case 16, annual net income and expenses convert consistently for monthly consumers.
+  period: 2026-07
+  input:
+    self_employment_income_before_lsr:
+      2026: 15_000
+    self_employment_expense:
+      2026: 21_000
+  output:
+    # Annual gross is 15,000 + 21,000 = 36,000; July receives one twelfth.
+    self_employment_gross_income: 3_000
+    self_employment_income: 1_250
+    self_employment_expense: 1_750
diff --git a/policyengine_us/variables/household/expense/person/self_employment_expense.py b/policyengine_us/variables/household/expense/person/self_employment_expense.py
index fdc546d5135..d8369408d29 100644
--- a/policyengine_us/variables/household/expense/person/self_employment_expense.py
+++ b/policyengine_us/variables/household/expense/person/self_employment_expense.py
@@ -14,10 +14,15 @@ class self_employment_expense(Variable):
         "28 total expenses plus line 30 business use of the home, and Schedule "
         "F line 33 total expenses. Exclude cost of goods sold (Schedule C line "
         "4; Schedule F line 1b, or Part III line 49 for accrual-method farms), "
-        "so that net profit plus this input equals Schedule C line 7 and "
-        "Schedule F line 9 gross income. Exclude employee work-related "
-        "expenses and personal income and self-employment taxes. Treated as "
-        "zero when not reported."
+        "so that matching net profit before tax loss limitations plus this "
+        "input reconstructs Schedule C line 7 and Schedule F line 9 gross "
+        "income before the model's gross-income floor. Exclude employee work-related "
+        "expenses and personal income and self-employment taxes. This input "
+        "adds back expenses already deducted from reported net profit; it "
+        "does not reduce that net profit again. Tax-return expenses are not "
+        "necessarily allowable expenses for a benefit program. Treated as "
+        "zero when not reported, which does not establish that actual "
+        "expenses were zero."
     )
     reference = (
         "https://www.irs.gov/instructions/i1040sc",
diff --git a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
index 2b237c0c8d2..3eedc58b628 100644
--- a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
+++ b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
@@ -8,19 +8,25 @@ class self_employment_gross_income(Variable):
     unit = USD
     label = "Gross self-employment income"
     documentation = (
-        "Schedule C line 7 and Schedule F line 9 gross income (receipts after "
-        "cost of goods sold and before other business expenses), reconstructed "
+        "Schedule C line 7 and Schedule F line 9 gross income (after cost of "
+        "goods sold and before other business expenses), reconstructed "
         "as net Schedule C (regular and SSTB) and Schedule F profit plus "
         "self_employment_expense. Covers sole-proprietor Schedule C and "
         "Schedule F businesses only; partnership_self_employment_net_earnings "
         "is excluded because partnership expenses are deducted on Form 1065, "
-        "so consumers needing partnership earnings add it separately. Each "
-        "source's gross income is at least its net profit floored at zero, so "
-        "the result is never below the sum of those floors: a loss in one "
-        "source does not offset another when expenses are omitted. With "
-        "complete expenses the reconstruction is exact; with none, as in "
-        "microsimulation, the result is the sum of the per-source floors. "
-        "The non-farm sources are post-labor-supply-response."
+        "so consumers needing partnership earnings handle it separately. "
+        "A modeling floor prevents the result from falling below the sum of "
+        "the three net sources individually floored at zero: a loss in one "
+        "source does not offset another when expenses are omitted. Complete "
+        "expenses matching the reported net amounts reconstruct tax-reported "
+        "gross income only when this floor does not bind. The floor is not "
+        "an IRS rule; tax-reported gross income can be negative. With no "
+        "expenses supplied, the result is the sum of the per-source floors. "
+        "The non-farm sources are post-labor-supply-response. This calculation "
+        "does not change net self-employment income or employment income. "
+        "Consumers apply their own expense deductions to the appropriate "
+        "gross-income base, then combine countable self-employment income "
+        "with separately treated wages."
     )
     reference = (
         "https://www.irs.gov/instructions/i1040sc",
@@ -30,14 +36,18 @@ class self_employment_gross_income(Variable):
     )
 
     def formula(person, period, parameters):
-        sources = [
+        net_income_sources = [
             "self_employment_income",
             "sstb_self_employment_income",
             "farm_operations_income",
         ]
         # Add back the expenses deducted from net profit, preserving losses
         # until after the add-back.
-        reconstructed = add(person, period, sources + ["self_employment_expense"])
-        # Each source's gross income is at least its net profit floored at zero.
-        source_floor = sum(max_(person(source, period), 0) for source in sources)
+        net_income = add(person, period, net_income_sources)
+        expenses = person("self_employment_expense", period)
+        reconstructed = net_income + expenses
+        # Apply the modeling fallback separately to each net-income source.
+        source_floor = sum(
+            max_(person(source, period), 0) for source in net_income_sources
+        )
         return max_(reconstructed, source_floor)

From fe9880849c44d2eb3c1bdc2181923a914a45f7a7 Mon Sep 17 00:00:00 2001
From: Ziming <ziming@policyengine.org>
Date: Tue, 29 Sep 2026 13:18:57 -0400
Subject: [PATCH 7/8] Use explicit addition for self-employment income floor

---
 .../person/self_employment/self_employment_gross_income.py  | 6 +++---
 1 file changed, 3 insertions(+), 3 deletions(-)

diff --git a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
index 3eedc58b628..1a7140acf25 100644
--- a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
+++ b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
@@ -47,7 +47,7 @@ def formula(person, period, parameters):
         expenses = person("self_employment_expense", period)
         reconstructed = net_income + expenses
         # Apply the modeling fallback separately to each net-income source.
-        source_floor = sum(
-            max_(person(source, period), 0) for source in net_income_sources
-        )
+        source_floor = 0
+        for source in net_income_sources:
+            source_floor = source_floor + max_(person(source, period), 0)
         return max_(reconstructed, source_floor)

From 2d6a227c11b39b99e502c791e3b4ea5cf582a3ee Mon Sep 17 00:00:00 2001
From: Ziming <ziming@policyengine.org>
Date: Tue, 29 Sep 2026 14:29:49 -0400
Subject: [PATCH 8/8] Keep shared self-employment PR limited to variables

---
 changelog.d/liheap-shared-inputs.added.md     |  2 +-
 docs/_toc.yml                                 |  1 -
 docs/usage/self-employment-income.md          | 85 -------------------
 .../expense/person/self_employment_expense.py | 28 ++----
 .../self_employment_gross_income.py           | 34 +++-----
 5 files changed, 21 insertions(+), 129 deletions(-)
 delete mode 100644 docs/usage/self-employment-income.md

diff --git a/changelog.d/liheap-shared-inputs.added.md b/changelog.d/liheap-shared-inputs.added.md
index f3b88f10ffe..8c905719109 100644
--- a/changelog.d/liheap-shared-inputs.added.md
+++ b/changelog.d/liheap-shared-inputs.added.md
@@ -1 +1 @@
-Add a shared person-level self-employment expense input and derive gross self-employment income from existing net income and reported business expenses other than cost of goods sold. Document the one-way calculation and distinguish tax-expense add-backs from program-specific allowable deductions.
+Add a shared person-level self-employment expense input and derive gross self-employment income from existing net income and reported business expenses other than cost of goods sold.
diff --git a/docs/_toc.yml b/docs/_toc.yml
index a9a5fab1ff3..b6496e344f2 100644
--- a/docs/_toc.yml
+++ b/docs/_toc.yml
@@ -65,7 +65,6 @@ parts:
     chapters:
       - file: usage/microsimulation
       - file: usage/parameter-discovery
-      - file: usage/self-employment-income
       - file: usage/speed
   - caption: Examples
     chapters:
diff --git a/docs/usage/self-employment-income.md b/docs/usage/self-employment-income.md
deleted file mode 100644
index 65096511965..00000000000
--- a/docs/usage/self-employment-income.md
+++ /dev/null
@@ -1,85 +0,0 @@
-# Self-employment income
-
-The shared variables reconstruct business gross income from existing net-income
-amounts. Benefit programs apply their own deductions after that reconstruction.
-
-| Variable | Meaning |
-| --- | --- |
-| `employment_income` | Employee wages, separate from business income. |
-| `self_employment_income` | Non-farm, non-SSTB net self-employment income. |
-| `sstb_self_employment_income` | Net income from a specified service trade or business. |
-| `farm_operations_income` | Net income from active farming operations. |
-| `self_employment_expense` | Expenses deducted to obtain the three net amounts above, excluding cost of goods sold. |
-| `self_employment_gross_income` | Their reconstructed gross income after cost of goods sold and before other business expenses, subject to the floor below. |
-
-These amounts are annual, person-level values. The two non-farm net-income
-variables include labor-supply responses.
-
-## Formula direction
-
-The accounting reconstruction is:
-
-```text
-net_income = self_employment_income
-           + sstb_self_employment_income
-           + farm_operations_income
-
-reconstructed_gross = net_income + self_employment_expense
-```
-
-The gross-income formula also enforces a floor equal to the sum of the three net
-sources individually floored at zero. This is a fallback when expenses are
-missing or incomplete. For example, $6,000 non-farm profit and a $10,000 farm loss
-with no expenses supplied produce $6,000, rather than a negative gross amount.
-This floor is a modeling assumption, not an IRS rule. Tax-reported gross income
-can be negative, for example when cost of goods sold exceeds sales and other
-income. Complete expense information therefore reproduces the tax-form gross
-amount only when the floor does not bind and the reported net profit has not
-already been adjusted by tax loss limitations.
-
-The dependency goes from net income and expenses to gross income. Do not add a
-reverse formula deriving the existing net-income variables from gross income:
-that would create a circular dependency. Supplying gross income directly does
-not infer net income or expenses; callers still supply net amounts for tax
-calculations.
-
-## Program deductions
-
-For a program using a standard percentage deduction, the consumer follows this
-pattern; these names are placeholders for program-specific variables:
-
-```text
-program_expense_deduction = applicable_gross_income * program_rate
-program_countable_self_employment_income =
-    max(0, applicable_gross_income - program_expense_deduction)
-```
-
-For example, net profit of $15,000 plus $25,000 of expenses reconstructs $40,000
-of gross income. A 25% standard deduction leaves $30,000 of countable income.
-The original $25,000 of expenses is not deducted a second time. The program's
-rate belongs in its parameters.
-
-Programs permitting actual expenses must identify the costs their own rules
-allow. `self_employment_expense` contains tax-return expense add-backs and is not
-a universal benefit-program deduction. Any actual-cost election, loss treatment,
-averaging period, and later earned-income disregard also belong in the program
-calculation. Combine wages and self-employment income only after applying their
-respective rules.
-
-## Coverage and missing information
-
-- The expense input defaults to zero. An omitted answer is not evidence of zero
-  actual expenses, so the derived amount should not be presented as verified
-  gross income without the necessary source information.
-- The gross amount is after cost of goods sold. It does not reconstruct gross
-  receipts before that accounting step.
-- The aggregate covers Schedule C and Schedule F income. It excludes
-  `partnership_self_employment_net_earnings` and does not preserve a gross-income
-  breakdown between farm and non-farm businesses. Consumers requiring those
-  distinctions need additional information.
-- The floor applies to the three income categories, not to each individual
-  business within a category. It does not implement program-specific loss rules.
-
-The accounting definitions follow [Schedule C](https://www.irs.gov/pub/irs-pdf/f1040sc.pdf)
-and [Schedule F](https://www.irs.gov/pub/irs-pdf/f1040sf.pdf). Their tax definitions
-do not determine which income and expenses a benefit program must count.
diff --git a/policyengine_us/variables/household/expense/person/self_employment_expense.py b/policyengine_us/variables/household/expense/person/self_employment_expense.py
index d8369408d29..aa118a52002 100644
--- a/policyengine_us/variables/household/expense/person/self_employment_expense.py
+++ b/policyengine_us/variables/household/expense/person/self_employment_expense.py
@@ -8,25 +8,15 @@ class self_employment_expense(Variable):
     unit = USD
     label = "Self-employment business expenses"
     documentation = (
-        "Business expenses, other than cost of goods sold, deducted in arriving "
-        "at the person's reported net self-employment income, combined across "
-        "the person's farm and non-farm sole proprietorships: Schedule C line "
-        "28 total expenses plus line 30 business use of the home, and Schedule "
-        "F line 33 total expenses. Exclude cost of goods sold (Schedule C line "
-        "4; Schedule F line 1b, or Part III line 49 for accrual-method farms), "
-        "so that matching net profit before tax loss limitations plus this "
-        "input reconstructs Schedule C line 7 and Schedule F line 9 gross "
-        "income before the model's gross-income floor. Exclude employee work-related "
-        "expenses and personal income and self-employment taxes. This input "
-        "adds back expenses already deducted from reported net profit; it "
-        "does not reduce that net profit again. Tax-return expenses are not "
-        "necessarily allowable expenses for a benefit program. Treated as "
-        "zero when not reported, which does not establish that actual "
-        "expenses were zero."
+        "Business expenses already deducted from regular, SSTB, and farm net "
+        "self-employment income, excluding cost of goods sold: tax year 2025 "
+        "Schedule C lines 28 and 30, and Schedule F line 33. Excludes employee "
+        "work expenses and personal income and self-employment taxes. Defaults "
+        "to zero when not reported. Used to reconstruct gross income, not to "
+        "reduce reported net income again or determine program-allowable costs."
     )
     reference = (
-        "https://www.irs.gov/instructions/i1040sc",
-        "https://www.irs.gov/instructions/i1040sf",
-        "https://www.irs.gov/pub/irs-pdf/f1040sc.pdf#page=1",
-        "https://www.irs.gov/pub/irs-pdf/f1040sf.pdf#page=1",
+        "https://www.irs.gov/pub/irs-prior/f1040sc--2025.pdf#page=1",
+        "https://www.irs.gov/pub/irs-prior/f1040sf--2025.pdf#page=1",
+        "https://www.irs.gov/pub/irs-prior/f1040sf--2025.pdf#page=2",
     )
diff --git a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
index 1a7140acf25..904d2dbdd72 100644
--- a/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
+++ b/policyengine_us/variables/household/income/person/self_employment/self_employment_gross_income.py
@@ -8,31 +8,19 @@ class self_employment_gross_income(Variable):
     unit = USD
     label = "Gross self-employment income"
     documentation = (
-        "Schedule C line 7 and Schedule F line 9 gross income (after cost of "
-        "goods sold and before other business expenses), reconstructed "
-        "as net Schedule C (regular and SSTB) and Schedule F profit plus "
-        "self_employment_expense. Covers sole-proprietor Schedule C and "
-        "Schedule F businesses only; partnership_self_employment_net_earnings "
-        "is excluded because partnership expenses are deducted on Form 1065, "
-        "so consumers needing partnership earnings handle it separately. "
-        "A modeling floor prevents the result from falling below the sum of "
-        "the three net sources individually floored at zero: a loss in one "
-        "source does not offset another when expenses are omitted. Complete "
-        "expenses matching the reported net amounts reconstruct tax-reported "
-        "gross income only when this floor does not bind. The floor is not "
-        "an IRS rule; tax-reported gross income can be negative. With no "
-        "expenses supplied, the result is the sum of the per-source floors. "
-        "The non-farm sources are post-labor-supply-response. This calculation "
-        "does not change net self-employment income or employment income. "
-        "Consumers apply their own expense deductions to the appropriate "
-        "gross-income base, then combine countable self-employment income "
-        "with separately treated wages."
+        "Gross income after cost of goods sold and before other business "
+        "expenses (tax year 2025 Schedule C line 7 and Schedule F line 9), "
+        "reconstructed from regular, SSTB, and farm net income plus "
+        "self_employment_expense. Excludes separately reported partnership "
+        "earnings. The result is floored at the sum of the three net sources "
+        "individually floored at zero; this modeling fallback can differ from "
+        "tax-reported gross income and is not an IRS rule. Non-farm net income "
+        "includes labor-supply responses."
     )
     reference = (
-        "https://www.irs.gov/instructions/i1040sc",
-        "https://www.irs.gov/instructions/i1040sf",
-        "https://www.irs.gov/pub/irs-pdf/f1040sc.pdf#page=1",
-        "https://www.irs.gov/pub/irs-pdf/f1040sf.pdf#page=1",
+        "https://www.irs.gov/pub/irs-prior/f1040sc--2025.pdf#page=1",
+        "https://www.irs.gov/pub/irs-prior/f1040sf--2025.pdf#page=1",
+        "https://www.irs.gov/pub/irs-prior/f1040sf--2025.pdf#page=2",
     )
 
     def formula(person, period, parameters):