Household Economic Strategy · Central Wisconsin

You're not broke.
You're miscategorized.

The tax code was written for businesses, not workers. A Ph.D. economist who farms mushrooms, raises two boys, and navigates the benefits cliff himself shows you how to use it — legally, honestly, and practically.

Start a conversation See the math →

$20.41
Living wage for a single adult in Central Wisconsin — not $15
$13–17
The danger zone where a raise can cost you more than you gain
$40k+
Real economic value a self-employed household can build on $15k taxable income
$0
What most self-employed people leave on the table by not tracking their deductions

The Problem

The benefits cliff is real — and most advice ignores it

The official poverty line is roughly $7.67/hour for a single adult. The actual cost of living in Central Wisconsin is $20.41/hour. That gap — nearly three to one — is not a rounding error. It is a policy fiction that shapes every program threshold you interact with.

The Cliff

Earn too little and you're in poverty. Earn a little more — say, $15/hour — and you lose Medicaid, SNAP, and housing assistance before you earn enough to replace them. The $13–$17/hour band is the danger zone where a raise can make a household measurably worse off. This is not speculation. It is arithmetic.

But the cliff only punishes you if you don't see it coming. Self-employed households — farmers, gig workers, hobbyists who monetize — have tools that W2 workers don't. The same tax code that helps corporations manage taxable income is available to you. Most people simply don't know where to look.

Consider what a farmer household with $16k taxable profit actually looks like:

Taxable profit$16,000
+ Business use of home$7,000
+ Depreciation (equipment, infrastructure)$3,000
+ Business use of vehicle$2,000
+ Energy assistance$1,000
+ Income tax return$4,500
+ Interest on cash$1,000
Real economic activity$34,500
+ SNAP ($700/month)$8,400
+ Medicaid (market value)~$14,000
Total economic picture~$56,900

On paper: a poverty case. In practice: a household living at or above the MIT living wage threshold for Central Wisconsin — legally, deliberately, and without triggering the cliff. The W2 equivalent of this position is roughly $60,000–$70,000 gross once you account for taxes, lost benefits, and out-of-pocket expenses.


Who This Is For

You feel broke. The numbers say you shouldn't.

This work is for self-employed people, small farmers, and side-hustle households who are somewhere between poverty and self-sufficiency — and can't figure out why every raise seems to cost them more than they gained.

Hobby farmers & homesteaders

You grow things. You sell some. You haven't thought of it as a business. It should be — and the deductions that follow are substantial.

Gig & platform workers

DoorDash, Etsy, Upwork, Airbnb. You're already self-employed. You're probably leaving significant deductions and benefit eligibility on the table.

Benefits cliff households

You make "too much" for full benefits but not enough to feel it. You need a map of exactly where the thresholds are and how to navigate around them.

Side hustlers ready to formalize

You have a skill, a craft, a service. An LLC costs $130 in Wisconsin. What it unlocks in deductions and legitimacy is worth far more.

Rural self-employed households

Vehicle mileage, home office, equipment depreciation — rural life generates deductions that most urban-focused advisors miss entirely.

Anyone told they earn too much

If a caseworker, a raise, or an income limit has ever made your situation worse — this conversation is for you.


Services

What we work through together

Every engagement starts with a conversation about your actual situation — income sources, household composition, current benefits, and goals. The right approach follows from that, not the other way around.

Household economic audit
$150

A full picture of your real economic position — taxable income vs. true cash flow, benefit eligibility, cliff exposure, and where deductions are being left unclaimed. Most clients discover their W2-equivalent position is significantly higher than they believed. The audit becomes the map for everything that follows.

Income analysis Benefit mapping Cliff assessment Deduction inventory
LLC & hobby monetization strategy
$100

How to structure a hobby, side activity, or small farm as a legitimate business — including what the IRS requires to treat it as such, how to document expenses, how to allocate home square footage, and how to track mileage in a way that holds up. Practical, not theoretical.

LLC structure Schedule C Home office Mileage tracking Depreciation
Benefits cliff navigation
$125

Detailed analysis of your current benefit eligibility, the income levels at which each benefit phases out, and legal strategies for managing taxable income to stay below cliff-triggering thresholds — without leaving real economic value on the table. Specific to Wisconsin programs and Portage/Central WI thresholds.

SNAP thresholds Medicaid eligibility Income management Wisconsin programs
Non-discretionary expense reduction
$125

Sometimes the best return on capital is eliminating a fixed expense permanently. Analysis of which non-discretionary costs to target first — property tax exposure, insurance structure, debt payoff sequencing — and how reducing the floor changes your benefit eligibility and cliff risk. Every dollar off your fixed floor is a dollar you don't have to earn.

Fixed cost reduction Debt sequencing Property tax Insurance review
Annual review
$75

Income changes. Thresholds shift. A quick annual update keeps your model current — new deduction opportunities, updated benefit eligibility, and any cliff exposure that's changed since the previous year. Best done before tax filing season.

Annual update Threshold changes New deductions Pre-tax season

Sliding Scale

If cost is a barrier, say so. A sliding scale floor of $75 is available for households below a certain income. The goal is access, not revenue — mention it when you reach out and we'll figure out what works.


About

The economist behind the work

I am a Ph.D. urban and regional economist based in the Stevens Point area. I left academia to be a stay-at-home dad to two boys, started growing gourmet mushrooms in the basement as a hobby, and never really stopped. I run Segura & Sons mushroom farm, serve as Founder and Chief Economist at The Central Wisconsin Economy, and do regional economic consulting for developers, municipalities, and foundations.

I also navigate the benefits cliff myself. Self-employed, farming income, two kids — I have done the math on my own household the same way I do it for clients. The advice I give is not theoretical. It is the same framework I use to manage our own economic position in Central Wisconsin.

The work on this page is different in audience from my institutional consulting — but the analytical approach is the same: honest numbers, no assumptions left unexamined, and conclusions that follow from evidence rather than from what you hoped to hear.

See my institutional consulting practice →

Credentials
Ph.D., Urban & Regional Economics — Oklahoma State University, 2013
M.A., Economics — University of Missouri
Former Asst. Professor & Director, Central Wisconsin Economic Research Bureau — UW–Stevens Point
5 peer-reviewed publications — regional science, policy, sports economics
Founder, The Central Wisconsin Economy — nonprofit regional data platform
Owner, Segura & Sons — gourmet mushroom farm, Stevens Point

Common Questions

What people search for before finding this page

These are the real questions — the ones people type at midnight when a raise just cost them their Medicaid.

The benefits cliff is the point where earning more money makes you worse off. You cross an income threshold, lose Medicaid or SNAP, and the value of what you lost exceeds what you gained from the raise. Workers between $13 and $17/hour are most exposed. It is not bad luck — it is a structural flaw in how benefit phase-outs are designed.
First, document exactly what you lost and what you gained — the net is often negative. If you have any self-employment income, a side hustle, or a hobby you could monetize, there may be legal ways to manage your taxable income below the threshold. That's exactly what a household economic audit covers.
In Portage County (Stevens Point area), MIT's Living Wage Calculator puts the living wage at $20.41/hour for a single adult with no dependents. With one child it rises to $37.78/hour. The federal minimum wage of $7.25 and the commonly debated $15 minimum wage both fall short of actual self-sufficiency for most household types.
Yes — if you operate it with intent to profit, the IRS treats it as a business rather than a hobby. That unlocks Schedule C deductions: home office space, vehicle mileage, seeds and supplies, equipment depreciation, and more. You don't have to be profitable yet. You have to show you're trying to be. An LLC adds legitimacy and makes the paper trail cleaner.
The 2025 IRS standard mileage rate is 70 cents per mile for business use. Ten thousand business miles is a $7,000 deduction. You need a log — date, destination, purpose, miles. Apps like MileIQ or a simple spreadsheet work. Most self-employed people in rural areas drive significant deductible miles and track none of them.
No — not for most household types. MIT's data for Central Wisconsin puts the single-adult living wage at $20.41/hour. $15/hour generates roughly $31,200/year before taxes, which falls below the actual cost of basic needs for a single adult. For households with children, the gap is far larger. $15/hour is better than $7.25 — but it is still a poverty wage by an honest measure.
A household economic audit is $150. LLC and monetization strategy is $100. Benefits cliff navigation and non-discretionary expense reduction are $125 each. An annual review is $75. A sliding scale floor of $75 is available for households below a certain income — just mention it when you reach out. For most clients, the first identified deduction or retained benefit covers the fee many times over.

Tell me what you're trying to figure out

You don't need to know which service fits. Describe your situation — income sources, household size, what's frustrating you — and I'll tell you whether I can help and what that looks like. No commitment required.

Location Stevens Point, WI
Central Wisconsin
Response time Within one business day
Personal site jeromeseguraiii.com