topic Re: Are Bonuses included in Annual Income? in General Credit Topics

Are Bonuses included in Annual Income?

PhilL — Mon, 16 Dec 2024 14:47:55 GMT

I'm updating my annual income on my credit card and other financial accounts, and had a couple of questions for clarification purposes.

1. Annual income is pre-tax, correct?

2. Does this include things like work performance bonuses etc?

Re: Are Bonuses included in Annual Income?

JoeRockhead — Mon, 16 Dec 2024 15:01:29 GMT

@PhilL wrote:
I'm updating my annual income on my credit card and other financial accounts, and had a couple of questions for clarification purposes.

1. Annual income is pre-tax, correct?
2. Does this include things like work performance bonuses etc?

1. Yes

2. Depends. If your bonus income is guaranteed, is a regular part of your compensation and/or has a track record of being a consistent level then there will likely be no issue if somewhere down the road if you're asked for POI... tax returns, etc...

Re: Are Bonuses included in Annual Income?

AzCreditGuy — Mon, 16 Dec 2024 15:35:22 GMT

My bonus was included in my annual income and inflated to make it seem I was being paid a lot more than I was and it was also taxed 35% by the good old USA

Re: Are Bonuses included in Annual Income?

PhilL — Mon, 16 Dec 2024 17:56:53 GMT

Then again, aren't bonuses and salary increases reported by your employer with your W-2, and not by whatever number you put on an application/account page?

Also, the IRS already generously helped it's self to my bonus, so would it really make that much of a difference

Re: Are Bonuses included in Annual Income?

PhilL — Mon, 16 Dec 2024 18:16:58 GMT

@JoeRockhead wrote:
@PhilL wrote:
I'm updating my annual income on my credit card and other financial accounts, and had a couple of questions for clarification purposes.

1. Annual income is pre-tax, correct?
2. Does this include things like work performance bonuses etc?

1. Yes
2. Depends. If your bonus income is guaranteed, is a regular part of your compensation and/or has a track record of being a consistent level then there will likely be no issue if somewhere down the road if you're asked for POI... tax returns, etc...

My bonus or salary increases aren't guaranteed by my employer to my knowledge. However, I've fairly consistently received both while working for them, and I am a longer term employee at the business I work for.

Re: Are Bonuses included in Annual Income?

SouthJamaica — Mon, 16 Dec 2024 20:13:08 GMT

@PhilL wrote:
I'm updating my annual income on my credit card and other financial accounts, and had a couple of questions for clarification purposes.

1. Annual income is pre-tax, correct?
2. Does this include things like work performance bonuses etc?

1. Yes they usually ask for gross, pre-tax income.

2. Yes bonuses count as income.

Re: Are Bonuses included in Annual Income?

markbeiser — Tue, 17 Dec 2024 05:53:40 GMT

You can also include realized capital gains, rental income, etc..

Re: Are Bonuses included in Annual Income?

salt_water_swimming — Tue, 17 Dec 2024 08:33:36 GMT

I would include anything you have received in the past or reasonably expect to receive

Re: Are Bonuses included in Annual Income?

GreatLife — Tue, 17 Dec 2024 21:26:47 GMT

I would include anything & everything that's considered pre-payroll deduction earnings and/or pre-taxed income on my federal tax return.

Re: Are Bonuses included in Annual Income?

Thomas_Thumb — Thu, 19 Dec 2024 00:02:29 GMT

@PhilL wrote:
I'm updating my annual income on my credit card and other financial accounts, and had a couple of questions for clarification purposes.

1. Annual income is pre-tax, correct?
2. Does this include things like work performance bonuses etc?

1) yes. 2) Of course it does. 3) Realized investment income that is taxed can be included as well. I'd probably limit that to interest on CDs, yearly dividends, RMDs on pretax investments and net rental property income.