topic Re: Reported Income on Apps in Credit Cards

Reported Income on Apps

Anonymous — Mon, 02 Jul 2012 17:49:49 GMT

After speaking with several people, I keep hearing different answers, so I thought I might as well ask on here.

What do you include in annual income and other income on apps?

What I've heard so far is that annual income should strictly be income you receive from your wages/salary at whatever job(s) you work.

Other income should cover basically everything else, like scholarships, grants, child support, etc. Is this correct?

I didn't even know we could factor in scholarships until I heard another member post about it on a different thread. I was pleasently surprised to say the least.

The numbers they are asking for is also pretax I assume, or are we actually supposed to estimate what we would get taken out? I haven't actually worked a full year at my current position, so I was going to take my gross pay through the first half of 2012 and multiply it by 2.

Re: Reported Income on Apps

CS800 — Mon, 02 Jul 2012 17:53:56 GMT

Income as reported on your paystubs that you can prove if needed.

Re: Reported Income on Apps

webhopper — Mon, 02 Jul 2012 17:59:43 GMT

@Anonymous wrote:
After speaking with several people, I keep hearing different answers, so I thought I might as well ask on here.

What do you include in annual income and other income on apps?

What I've heard so far is that annual income should strictly be income you receive from your wages/salary at whatever job(s) you work.

Other income should cover basically everything else, like scholarships, grants, child support, etc. Is this correct?

I didn't even know we could factor in scholarships until I heard another member post about it on a different thread. I was pleasently surprised to say the least.

The numbers they are asking for is also pretax I assume, or are we actually supposed to estimate what we would get taken out? I haven't actually worked a full year at my current position, so I was going to take my gross pay through the first half of 2012 and multiply it by 2.

I include income worked from job (w-2) including bonus income. Rental Income (reported on Schedule C), child support which equals about 121k. This is a Gross, not a Modified Adjusted Gross or a Net.
So I guess I'm just reporting Gross Income on all my apps. If apping over the phone, I specify with the rep if Gross is acceptable before providing this number.

Re: Reported Income on Apps

CreditCrusader — Mon, 02 Jul 2012 18:25:36 GMT

@Anonymous wrote:
After speaking with several people, I keep hearing different answers, so I thought I might as well ask on here.

What do you include in annual income and other income on apps?

What I've heard so far is that annual income should strictly be income you receive from your wages/salary at whatever job(s) you work.

Other income should cover basically everything else, like scholarships, grants, child support, etc. Is this correct?

I didn't even know we could factor in scholarships until I heard another member post about it on a different thread. I was pleasently surprised to say the least.

The numbers they are asking for is also pretax I assume, or are we actually supposed to estimate what we would get taken out? I haven't actually worked a full year at my current position, so I was going to take my gross pay through the first half of 2012 and multiply it by 2.

If it can be reported on your tax return, report it. If not, I wouldn't. Of course, you can put whatever you want, but I'd make sure my ducks are in a row in that regard because CC companies can close you down if they don't agree with what you consider to be income.

Re: Reported Income on Apps

android01 — Mon, 02 Jul 2012 19:09:55 GMT

I list my adjusted gross income on my 1040 which includes income from W-2, and K-1 (S-corp income) primarily, and any dividend and interest income from investments. This does vary from year to year, although not usually by more than 20%. Since I usually apply for a new card once a year, I use my income from the most recent tax year.

Re: Reported Income on Apps

Anonymous — Mon, 02 Jul 2012 20:08:47 GMT

Thanks for the replies thus far.

Do any of you include scholarships or grants (assuming you're stil in school), and would you recommend that go in Other Income, or just Income?

Would CCCs actually get upset if you used gross income vs adjusted for taxes income? I thought it was usually always a given for pretax, but apparently not?

Re: Reported Income on Apps

CreditCrusader — Mon, 02 Jul 2012 20:13:57 GMT

@Anonymous wrote:
Thanks for the replies thus far.

Do any of you include scholarships or grants (assuming you're stil in school), and would you recommend that go in Other Income, or just Income?

Would CCCs actually get upset if you used gross income vs adjusted for taxes income? I thought it was usually always a given for pretax, but apparently not?

I'd use this as my guide...straight from the IRS website:

Earned income includes all the taxable income and wages you get from working.

There are two ways to get earned income:

You work for someone who pays you
or
You work in a business you own or run

Taxable earned income includes:

Wages, salaries, tips, and other taxable employee pay;
Union strike benefits;
Long-term disability benefits received prior to minimum retirement age;
Net earnings from self-employment if
- you own or operate a business, or
- you are a minister or member of a religious order ( see Special Rules page for more information);
Gross income received as a statutory employee

Source: http://www.irs.gov/individuals/article/0,,id=176508,00.html

You seem to want to use financial aid and scholarships as income, but keep in mind those are specifically designated to be put toward higher education expenses. Listing them as income is not technically correct, but it's your call since it's your app

Re: Reported Income on Apps

SwiftTone — Mon, 02 Jul 2012 20:14:29 GMT

I think this topic is subjective based on whats moral and ethical I would say you can include anything that you don't have to pay back including grants, scholarships, gifts etc. It's pretty debatable.

Re: Reported Income on Apps

SwiftTone — Mon, 02 Jul 2012 20:16:29 GMT

I think using the IRS definition isn't entirely correct. lenders do say you can include child support, allimony etc which isn't included in IRS's definition.

Re: Reported Income on Apps

OhioCPA — Mon, 02 Jul 2012 20:33:07 GMT

I would put scholarships and grants on the line for "other".

I have both W2 and Schedule C income. On my apps, I include my gross salary including bonuses, OT, and other pretax items from my employment and my net income from the Schedule C.

Re: Reported Income on Apps

Anonymous — Mon, 02 Jul 2012 22:44:14 GMT

@SwiftTone wrote:
I think this topic is subjective based on whats moral and ethical I would say you can include anything that you don't have to pay back including grants, scholarships, gifts etc. It's pretty debatable.

In my defense, I specifically asked the CCC if I could include scholarships/grants in my reported income and they said yes, there wouldn't be any problems.

Thanks for the input though, everyone.

Re: Reported Income on Apps

Anonymous — Mon, 02 Jul 2012 22:59:22 GMT

I know some of the larger banks actually read a disclosure to you regarding income, and scholarships cannot be used.

Re: Reported Income on Apps

CreditCrusader — Tue, 03 Jul 2012 15:06:13 GMT

@Anonymous wrote:
I know some of the larger banks actually read a disclosure to you regarding income, and scholarships cannot be used.

That's my experience as well...

Look, you can put anything you want on the line. Point is, one of these CCCs may yank the rug from under your feet if they start poking around to discover where the "income" is coming from. Earned income is, by and large, recurring and sustainable. Financial aid and scholarships are, by definition, limited in scope and length and are not designed to be used as income to satisfy private debts - regardless of how people choose to use the money. I sincerely doubt that most CCCs will seriously consider them as a means to repay debt on a sustained basis.

That all having been said, if you find one that allows you to include financial aid and scholarships as income, go for it. Just make sure you get it in writing because a later FR down the road could spell doom for that card. If the card in question contributes significantly to your aggregate CL, util, etc., your credit score would be deeply impacted should the CCC close it down. I just don't think it's worth the risk, but you may feel differently. Good luck.

Re: Reported Income on Apps

Anonymous — Tue, 03 Jul 2012 15:29:12 GMT

@Anonymous wrote:
Thanks for the replies thus far.

Do any of you include scholarships or grants (assuming you're stil in school), and would you recommend that go in Other Income, or just Income?

Would CCCs actually get upset if you used gross income vs adjusted for taxes income? I thought it was usually always a given for pretax, but apparently not?

~~No, because I'd never recognize a debt as income. It's a liability. You're going to pay interest on it.~~

Disregard this. It's erroneous.

Re: Reported Income on Apps

CreditCrusader — Tue, 03 Jul 2012 15:16:22 GMT

@Anonymous wrote:
@Anonymous wrote:
Thanks for the replies thus far.

Do any of you include scholarships or grants (assuming you're stil in school), and would you recommend that go in Other Income, or just Income?

Would CCCs actually get upset if you used gross income vs adjusted for taxes income? I thought it was usually always a given for pretax, but apparently not?

No, because I'd never recognize a debt as income. It's a liability. You're going to pay interest on it.

Not for scholarships and grants he won't...no debt involved with those, but I still wouldn't list them as "income" because they technically don't meet the definition of earned income. If we were talking a short-term loan (12 months or so) and the grant excess would satisfy the debt, you might talk me into that should the lender agree to it. But a CC is a revolving account...and by definition, it needs revolving, sustained earned income to pay the debt off.

Like I said, OP might find some CCCs that will allow financial aid or scholarships to be listed as "income", but most won't roll that way.

Note: I speak from experience...had a prime CC lender scold me for doing this very thing when I was in school. It almost cost me my card. Only picking up a 2nd part-time job on campus and the fact that I had banked with them since high school kept them from closing me down.

Re: Reported Income on Apps

Anonymous — Tue, 03 Jul 2012 15:27:55 GMT

I somehow read that as "student loans".

Thanks for correcting me, CreditCrusader.