Tax returns usually don't break down commission income, salary income, etc. Income from an employer who pays via W-2 is just grouped together on line 7 of tax form 1040. Where the commission income is broken down is on a paycheck, as well as a Verification of Employment (VOE) form your loan officer gets completed by your company's HR department. Commission income needs a 2 year history of receipt in order to be used for qualifying purposes though. When making commission income, the tax returns are needed to determine what type of unreimbursed expenses one has from their company, as most employees who are paid commission have some extra expenses of their own.
Are you trying for an FHA loan? Here is what FHA guidelines say about commission income:
D. Commission Income. Commission income must be averaged over the previous two years. The borrower must provide copies of signed tax returns for the last two years, along with the most recent pay stub. (Unreimbursed business expenses must be subtracted from gross income.) Individuals whose commission income shows a decrease from one year to the next require significant compensating factors to allow for loan approval. Borrowers with commission income received for more than one but less than two years may be considered favorably provided the underwriter is able to make a sound rationalization for acceptance and can document the likelihood of continuance.
Commissions earned for less than one year are not considered effective income. Exceptions may be made for situations in which the borrower's compensation was changed from a salary to commission within a similar position with the same employer. A borrower also may qualify when the portion of earnings not attributed to commissions would be sufficient to qualify the borrower for the mortgage.
So since it's less than 1 year, it wouldn't be used as qualifying income, but could be used as a compensating factor if the file is otherwise "borderline" for approval. What will likely happen is that the underwriter will have to remove that income and re-qualify you without the comission income.
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