Married couple on Medicaid as aged clients live together in a house in town. Six years ago they deeded their farm to the children and retained a life estate. Mr. drives out to the farm most weekdays and helps his son, who lives on the farm, with minor chores. The verbal agreement and actual income distribution with the son has been a 60/40 crop and expenses split. The couple files a self-employed tax return.
This is not a self-employed situation for Medicaid.
The self-employed tax return can be used to help verify the sale of product and the allowable related expenses.
Since your clients are to receive 40% of product (grain, hay, livestock) sale and have 40% of cost (fertilizer, seed, fuel, repairs) + full responsibility for taxes and insurance, you will need to confirm with the client that the product income and expenses on the tax form are reflective of that arrangement.
The result will be used as unearned income in the client's budget.