FAA6.N Examples : 26 Self-Employment Income (SEEI/SEEW) Examples : F Annualizing Self-Employment Example
F Annualizing Self-Employment Example
 
Eva applies and is interviewed on April 30, 2019. Eva makes and sells gift baskets and meets the self-employment definition. Eva does not have a current IRS tax return. She provides the 12 full months of income prior to the month of application as follows:
 
Month
Income
April 2018
$400
May 2018
$800
June 2018
$650
July 2018
$375
August 2018
$500
September 2018
$325
October 2018
$400
November 2018
$700
December 2018
$1000
January 2019
$350
February 2019
$1200
March 2019
$500
Total
$7200
Average
÷12 $600
 
Eva’s average monthly income is $600. Eva explained that due to holidays her income fluctuates. She expects the monthly income of $600 to continue. Budget the annualized amount as the monthly income.