H Projecting Self-Employment Example

FAA6.N Examples : 26 Self-Employment Income (SEEI/SEEW) Examples : H Projecting Self-Employment Example

Projecting Self-Employment Example

Cathi applies and is interviewed on November 29, 2019. Cathi has a house cleaning business and meets the self-employment definition. Cathi provides the 12 full months of income prior to the month of application as follows:

Month	Income
November 2018	$600	Unusually High
December 2018	$600	Unusually High
January 2019	$600	Unusually High
February 2019	$600	Unusually High
March 2019	$600	Unusually High
April 2019	$600	Unusually High
May 2019	$600	Unusually High
June 2019	$450	Expected to Continue
July 2019	$450	Expected to Continue
August 2019	$450	Expected to Continue
September 2019	$450	Expected to Continue
October 2019	$450	Expected to Continue
	$6450	Total Year
	÷12 $537.50	Annualized amount
	$2250	Normal months total
	÷5 $450	Projected amount

Cathi’s annualized monthly income is $537.50. Cathi states the annualized amount does not reflect the monthly income she expects to receive since she has two less clients now than she had during the past year.

After excluding the unusual months, Cathi’s projected monthly income is $450. She expects to continue receiving $450 monthly. Budget the projected amount of $450 as the monthly income.