Existing star-forming/AGN classification schemes using optical emission-line diagnostics mostly fail for low-metallicity and/or highly star-forming galaxies, missing AGN in typical z ∼0 dwarfs. To recover AGN in dwarfs with strong emission lines, we present a classification scheme optimizing the use of existing optical diagnostics. We use SDSS emission-line catalogs overlapping the volume-and masslimited RESOLVE and ECO surveys to determine the AGN percentage in strong emission line dwarfs. Our photoionization grids show that the [O III]/Hβ versus [S II]/Hα diagram (SII plot) and [O III]/Hβ versus [O I]/Hα diagram (OI plot) are less metallicity sensitive and more successful in identifying dwarf AGN than the popular [O III]/Hβ versus [N II]/Hα diagnostic (NII plot or "BPT diagram").We identify a new category of "Star Forming-AGN" (SF-AGN) classified as star-forming by the NII plot but as AGN by the SII and/or OI plots. Including SF-AGN, we find the z ∼0 AGN percentage in dwarfs with strong emission lines to be ∼3-15%, far exceeding most previous optical estimates (∼1%). The large range in our dwarf AGN percentage reflects differences in spectral fitting methodologies between catalogs. The highly complete nature of RESOLVE and ECO allows us to normalize strong emission-line galaxy statistics to the full galaxy population, reducing the dwarf AGN percentage to ∼1-2%. The newly identified SF-AGN are mostly gas-rich dwarfs with halo mass < 10 11.5 M , where highly efficient cosmic gas accretion is expected. Almost all SF-AGN also have low metallicities (Z 0.4 Z ), demonstrating the advantage of our method.