topic Re: What to put in gross salary when you collect disability on credit card application??? in Credit Card Applications

What to put in gross salary when you collect disability on credit card application???

Anonymous — Wed, 27 May 2020 22:26:49 GMT

Hello,

Let me start off by saying I only put in my monthly disability amount I receive as my gross amount on credit card applications. Now some have asked for net, which makes it easier. But I am curious if it states "gross income" what should a person list as their total income in that box???

In looking/learning about a mortgage through VA loan; I have read where my non-taxable income(disability) will get multiplied by 1.25 to come up with a gross number for the application/consideration. That can make someone that gets as an example VA and SSDI disabilities annual income look $10 to $20,000 higher annually over net figures.

Again, I don't want to do anything wrong/illegal, just wonder what is correct for the credit card applications when they ask for "gross income" and the person's only income is disability?

Thanks!

Re: What to put in gross salary when you collect disability on credit card application???

ddamage — Wed, 27 May 2020 22:44:24 GMT

@Anonymous wrote:
Hello,

Let me start off by saying I only put in my monthly disability amount I receive as my gross amount on credit card applications. Now some have asked for net, which makes it easier. But I am curious if it states "gross income" what should a person list as their total income in that box???

In looking/learning about a mortgage through VA loan; I have read where my non-taxable income(disability) will get multiplied by 1.25 to come up with a gross number for the application/consideration. That can make someone that gets as an example VA and SSDI disabilities annual income look $10 to $20,000 higher annually over net figures.

Again, I don't want to do anything wrong/illegal, just wonder what is correct for the credit card applications when they ask for "gross income" and the person's only income is disability?

Thanks!

Great question. Im a 100% disabled veteran who receives non-tax income from VA and SSDI. Loook forward to someone having an answer.

Re: What to put in gross salary when you collect disability on credit card application???

M_Smart007 — Wed, 27 May 2020 22:49:00 GMT

Paging @Anonymous , As I think He could very well answer this?

He'll chime in when possible

Re: What to put in gross salary when you collect disability on credit card application???

Anonymous — Wed, 27 May 2020 22:54:56 GMT

I am a underwriter and I "gross up" SS and Disability by multiplying the amount on the award letter by 125%.

@ddamage wrote:
@Anonymous wrote:
Hello,

Let me start off by saying I only put in my monthly disability amount I receive as my gross amount on credit card applications. Now some have asked for net, which makes it easier. But I am curious if it states "gross income" what should a person list as their total income in that box???

In looking/learning about a mortgage through VA loan; I have read where my non-taxable income(disability) will get multiplied by 1.25 to come up with a gross number for the application/consideration. That can make someone that gets as an example VA and SSDI disabilities annual income look $10 to $20,000 higher annually over net figures.

Again, I don't want to do anything wrong/illegal, just wonder what is correct for the credit card applications when they ask for "gross income" and the person's only income is disability?

Thanks!
Great question. Im a 100% disabled veteran who receives non-tax income from VA and SSDI. Loook forward to someone having an answer.

Re: What to put in gross salary when you collect disability on credit card application???

AllZero — Wed, 27 May 2020 22:58:59 GMT

@M_Smart007 wrote:
Paging @Anonymous , As I think He could very well answer this?
He'll chime in when possible

@M_Smart007 Haven't seen Saeren online in a few days.

Re: What to put in gross salary when you collect disability on credit card application???

Anonymous — Wed, 27 May 2020 23:00:03 GMT

Credit cards, you want to read the instructions for income. I actually burned myself when I got my Apple Card because you are supposed to inflate the number 25% if your income is not taxable. Needless to say, that $4500 income discrepancy no doubt contributed to my disappointment with my SL. In fact when I later messaged them after hearing they were able to update income and told them what happened, they doubled my limit.

Generally speaking, you want to put your actual payment amount as your gross. There will be some apps like with AMEX where you will have a separate spot to put what portion of your income is not taxable and that presumably does the calculations internally for them.

Re: What to put in gross salary when you collect disability on credit card application???

Anonymous — Wed, 27 May 2020 23:00:38 GMT

@AllZero wrote:
@M_Smart007 wrote:
Paging @Anonymous , As I think He could very well answer this?
He'll chime in when possible
@M_Smart007 Haven't seen Saeren online in a few days.

I am still reading. Just not posting as much.

Re: What to put in gross salary when you collect disability on credit card application???

AllZero — Wed, 27 May 2020 23:00:53 GMT

@AllZero wrote:
@M_Smart007 wrote:
Paging @Anonymous , As I think He could very well answer this?
He'll chime in when possible
@M_Smart007 Haven't seen Saeren online in a few days.

I wrote too soon.

Re: What to put in gross salary when you collect disability on credit card application???

AllZero — Wed, 27 May 2020 23:01:34 GMT

@Anonymous wrote:
@AllZero wrote:
@M_Smart007 wrote:
Paging @Anonymous , As I think He could very well answer this?
He'll chime in when possible
@M_Smart007 Haven't seen Saeren online in a few days.
I am still reading. Just not posting as much.

Welcome back.

Re: What to put in gross salary when you collect disability on credit card application???

Anonymous — Thu, 28 May 2020 01:23:27 GMT

Thank you all for your helpful information!!!!

Re: What to put in gross salary when you collect disability on credit card application???

Anonymous — Thu, 28 May 2020 15:52:08 GMT

Wouldn't net and gross basically be tha same amount though, for someone who isn't required to pay taxes or have anything witheld?

Why would you have to inflate it? And wouldn't that cause issues if one ever needed to submit POI?

Re: What to put in gross salary when you collect disability on credit card application???

Azuieldrago — Fri, 29 May 2020 05:35:29 GMT

Ok, I am questioning this too as I have a FT job and get VA disibility. Normally for my job I just use the last current W2s for my income and now with my disability I have been taking the monthly payment X12 to equal my yearly and then add to my W2 yearly gross. So I am wrong doing that? Why would you need to inflate your income like that? If I am making a $100, why would I say I make $125? That sounds fraudulant as there would be no proof of that added income. If there is a lot of info, you can PM me it. I just started getting VA disability and working towards more so I would really like to know the reasoning behind that. Thank you.

Re: What to put in gross salary when you collect disability on credit card application???

Anonymous — Fri, 29 May 2020 10:05:11 GMT

@Anonymous wrote:
Credit cards, you want to read the instructions for income. I actually burned myself when I got my Apple Card because you are supposed to inflate the number 25% if your income is not taxable. Needless to say, that $4500 income discrepancy no doubt contributed to my disappointment with my SL. In fact when I later messaged them after hearing they were able to update income and told them what happened, they doubled my limit.

Generally speaking, you want to put your actual payment amount as your gross. There will be some apps like with AMEX where you will have a separate spot to put what portion of your income is not taxable and that presumably does the calculations internally for them.

So you bring up something that confused me. I saw this on a couple credit apps (amex and chase). I thought, personally, that i was to put the non-taxable income in the second spot and the taxable portion (only and seperate from non-taxable income) in the first. I have crazy checkstubs. Not that I applied, but when I do are you saying put the total monies (taxable plus non taxable) in the first spot and then exclusively the non-taxable in the second?

I would have looked like an idiot if that is the case. I hope to figure that out prior to apping down the road so I dont look like a fool because my non-taxable is sometime greater than my taxable income.

Re: What to put in gross salary when you collect disability on credit card application???

Anonymous — Fri, 29 May 2020 16:59:58 GMT

@Anonymous wrote:
@Anonymous wrote:
Credit cards, you want to read the instructions for income. I actually burned myself when I got my Apple Card because you are supposed to inflate the number 25% if your income is not taxable. Needless to say, that $4500 income discrepancy no doubt contributed to my disappointment with my SL. In fact when I later messaged them after hearing they were able to update income and told them what happened, they doubled my limit.

Generally speaking, you want to put your actual payment amount as your gross. There will be some apps like with AMEX where you will have a separate spot to put what portion of your income is not taxable and that presumably does the calculations internally for them.
So you bring up something that confused me. I saw this on a couple credit apps (amex and chase). I thought, personally, that i was to put the non-taxable income in the second spot and the taxable portion (only and seperate from non-taxable income) in the first. I have crazy checkstubs. Not that I applied, but when I do are you saying put the total monies (taxable plus non taxable) in the first spot and then exclusively the non-taxable in the second?

I would have looked like an idiot if that is the case. I hope to figure that out prior to apping down the road so I dont look like a fool because my non-taxable is sometime greater than my taxable income.

You put the total gross income on the income line and then just the portion that is not taxable in the second, yes.

"This only applies if a portion of your Total Annual Income is nontaxable and is optional. Include here any amount of your Total Annual Income that is exempt from federal income tax. This may include social security, child support, public assistance, disability, workers compensation, and military allowances. If you're under 21, please include your personal income only."

See here they clearly say that these items are part of your total annual income from the first line, the second line is just to specify what amount of total income is not subject to taxes.

Also to people who are confused about my post, read it again. I say to follow the instructions listed for what counts as income. It's really not that complicated and the only card app I have seen that explicitly said to inflate income 25% was Apple Card because Apple Card uses mortgage underwriting criteria. If in doubt, either call the creditor or put your regular gross income down. I'm NOT telling anyone to just inflate their income without the direction to do so by the creditor.

Re: What to put in gross salary when you collect disability on credit card application???

Anonymous — Fri, 29 May 2020 22:20:04 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Credit cards, you want to read the instructions for income. I actually burned myself when I got my Apple Card because you are supposed to inflate the number 25% if your income is not taxable. Needless to say, that $4500 income discrepancy no doubt contributed to my disappointment with my SL. In fact when I later messaged them after hearing they were able to update income and told them what happened, they doubled my limit.

Generally speaking, you want to put your actual payment amount as your gross. There will be some apps like with AMEX where you will have a separate spot to put what portion of your income is not taxable and that presumably does the calculations internally for them.
So you bring up something that confused me. I saw this on a couple credit apps (amex and chase). I thought, personally, that i was to put the non-taxable income in the second spot and the taxable portion (only and seperate from non-taxable income) in the first. I have crazy checkstubs. Not that I applied, but when I do are you saying put the total monies (taxable plus non taxable) in the first spot and then exclusively the non-taxable in the second?

I would have looked like an idiot if that is the case. I hope to figure that out prior to apping down the road so I dont look like a fool because my non-taxable is sometime greater than my taxable income.
You put the total gross income on the income line and then just the portion that is not taxable in the second, yes.

"This only applies if a portion of your Total Annual Income is nontaxable and is optional. Include here any amount of your Total Annual Income that is exempt from federal income tax. This may include social security, child support, public assistance, disability, workers compensation, and military allowances. If you're under 21, please include your personal income only."

See here they clearly say that these items are part of your total annual income from the first line, the second line is just to specify what amount of total income is not subject to taxes.

Also to people who are confused about my post, read it again. I say to follow the instructions listed for what counts as income. It's really not that complicated and the only card app I have seen that explicitly said to inflate income 25% was Apple Card because Apple Card uses mortgage underwriting criteria. If in doubt, either call the creditor or put your regular gross income down. I'm NOT telling anyone to just inflate their income without the direction to do so by the creditor.

I would have followed the instructions as listed for income, had I applied (which obv I am not ready yet), but to me it was confusing. This included housing allowance, etc, which in my case, is a huge chunk of my income, so it was clear what was acceptable, and to me, seemed unique to Chase only, as most places only state SSI/SSDI, alimony, child support, etc., counts as additional income. The way it was worded was confusing, to me, and made me think to only put the taxable portion on the first line and then the non-taxable on the second line. I never thought you intended for anyone to inflate their income.

Re: What to put in gross salary when you collect disability on credit card application???

Anonymous — Fri, 29 May 2020 22:33:30 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Credit cards, you want to read the instructions for income. I actually burned myself when I got my Apple Card because you are supposed to inflate the number 25% if your income is not taxable. Needless to say, that $4500 income discrepancy no doubt contributed to my disappointment with my SL. In fact when I later messaged them after hearing they were able to update income and told them what happened, they doubled my limit.

Generally speaking, you want to put your actual payment amount as your gross. There will be some apps like with AMEX where you will have a separate spot to put what portion of your income is not taxable and that presumably does the calculations internally for them.
So you bring up something that confused me. I saw this on a couple credit apps (amex and chase). I thought, personally, that i was to put the non-taxable income in the second spot and the taxable portion (only and seperate from non-taxable income) in the first. I have crazy checkstubs. Not that I applied, but when I do are you saying put the total monies (taxable plus non taxable) in the first spot and then exclusively the non-taxable in the second?

I would have looked like an idiot if that is the case. I hope to figure that out prior to apping down the road so I dont look like a fool because my non-taxable is sometime greater than my taxable income.
You put the total gross income on the income line and then just the portion that is not taxable in the second, yes.

"This only applies if a portion of your Total Annual Income is nontaxable and is optional. Include here any amount of your Total Annual Income that is exempt from federal income tax. This may include social security, child support, public assistance, disability, workers compensation, and military allowances. If you're under 21, please include your personal income only."

See here they clearly say that these items are part of your total annual income from the first line, the second line is just to specify what amount of total income is not subject to taxes.

Also to people who are confused about my post, read it again. I say to follow the instructions listed for what counts as income. It's really not that complicated and the only card app I have seen that explicitly said to inflate income 25% was Apple Card because Apple Card uses mortgage underwriting criteria. If in doubt, either call the creditor or put your regular gross income down. I'm NOT telling anyone to just inflate their income without the direction to do so by the creditor.
I would have followed the instructions as listed for income, had I applied (which obv I am not ready yet), but to me it was confusing. This included housing allowance, etc, which in my case, is a huge chunk of my income, so it was clear what was acceptable, and to me, seemed unique to Chase only, as most places only state SSI/SSDI, alimony, child support, etc., counts as additional income. The way it was worded was confusing, to me, and made me think to only put the taxable portion on the first line and then the non-taxable on the second line. I never thought you intended for anyone to inflate their income.

Yeah I wasn't referring to you about the inflation part. There are two other posts that seemed confused about why one would inflate their income. It's not easy to multi quote on this site, especially on a phone, so I just addressed that in the same post.

Chase doesn't have different rules, they're just expanding on examples. You can absolutely use housing allowance as part of your income. In fact, anything that goes into your checking account and is verifiable can be used, just be careful because when it comes to additional verification you can run into trouble if they don't like the proof you have. But even on the instructions for Chase, it says "portion of your total gross annual income," which means that you would include all income as total gross annual income and then also list the amount that is non-taxable in the second box.

When I applied for my AMEX cards, I put my SSDI annual gross as total AND as the portion non-taxable since it's my only source of income.

Re: What to put in gross salary when you collect disability on credit card application???

Anonymous — Sat, 30 May 2020 17:58:02 GMT

Okay now i get it. I've encountered those apps too with a section for Non-Taxable Income and usaully just leave it blank, because I've read a few times where a person has gotten POI requests by using that section.

I recently utilized that section on a BoA app and it went smoothly with no request for Docs, so I may start doing it more often.

Re: What to put in gross salary when you collect disability on credit card application???

Anonymous — Sat, 30 May 2020 18:12:17 GMT

@Anonymous wrote:
Okay now i get it. I've encountered those apps too with a section for Non-Taxable Income and usaully just leave it blank, because I've read a few times where a person has gotten POI requests by using that section.

I recently utilized that section on a BoA app and it went smoothly with no request for Docs, so I may start doing it more often.

None of the companies who asked also asked me for POI. I've only been asked for POI by SSFCU, DCU, AOD, and Bank of the West.