TGBill, I can't see how anyone running a daycare can survive on 10K gross business income a year. They'd be lucky to have half that left as taxable profit after business expenses. TO me, it's unrealistic to think daycare is one's only source of income at $200 a week. Now if they have say, for example, veterans disability at 100% then maybe. But if they're "working" (even self-employed) they could putting that 100% disability rating at risk.
In Jan of this year an aquantaintance of mine who was received $700 a month assistance from the govt. after being released from serving 4 years in prison, got that allowance cut. Seems they were "working under the table" for cash only, making about an extra $700-1000 a month. Turns out one of his "clients" filed a 1099-MISC for what they paid him, and that's how he got "caught". What the real kicker is, he now has to pay back the $700 a month he received for all of 2016. That's $8400.
ON top of that, interest *and* penalties *and* fines accumulate on the unpaid balance. Good news is, it's motivated him to work more. Looks like he'll have it paid off by December. But even then he will have "paid back" close to $10K.
The irony of it is, I told him in 2014 when he was released from prison, not to do what he did. He's one hell of a worker and definitely not lazy. He's into landscaping and really knows his stuff. A "green thumb" so to speak. I tried to get him to start his own business in 2015, but his excuse was "I don't want to lose my $700/mo govt payment". Well, now he's lost it, has to pay it back and then some. But so far this year, looks like he's going to net over $30K profit after expenses. (I'm helping him with his book keeping as a sort of "training" for him, and will walk him doing what will be his first tax return as self-employed, when the time comes.)
Persoanlly, I think it was a lack of confidence on his part. But some people have to learn the hard way I guess.
