Amex 4506t?

[revvystoke]

I closed my personal Amex card today and was hoping to apply for a no fee card by the end of this month. When I apply should I use the actual income that will be on my 2014 tax return, or estimated (80hr*26) income. I have a 40k business revolving line with them and don't want to lose out because of a FR.

[Anonymous]

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@revvystoke wrote:
I closed my personal Amex card today and was hoping to apply for a no fee card by the end of this month. When I apply should I use the actual income that will be on my 2014 tax return, or estimated (80hr*26) income. I have a 40k business revolving line with them and don't want to lose out because of a FR.

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Tax return.

[Anonymous]

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@Anonymous wrote:

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@revvystoke wrote:
I closed my personal Amex card today and was hoping to apply for a no fee card by the end of this month. When I apply should I use the actual income that will be on my 2014 tax return, or estimated (80hr*26) income. I have a 40k business revolving line with them and don't want to lose out because of a FR.

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Tax return.

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Depends!   If they are very different (with estimated being much higher) and you need/want a high CL, it might be worth using the estimate.   FRs are very rare, and probably the worst that would happen if you DID get one,  is that your CL would be reduced to something in line with what is on the return.

[revvystoke]

My concern was getting the account(s) closed I didn't know they had the option to just reduce the line instead. I started a second job in Feb. so the difference between stated income and the actual I am estimating to be about 25k.

[Anonymous]

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@revvystoke wrote:
My concern was getting the account(s) closed I didn't know they had the option to just reduce the line instead. I started a second job in Feb. so the difference between stated income and the actual I am estimating to be about 25k.

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While an FR can lead to account closure (if they suspect fraud or the financial situation is such that the member is too risky for any card) it's more common (still remembering that FRs are rare!) to get CLs reduced, and hard limits put on charge cards.   The limits can go back up once Amex is satisfied things are good again.   (And some FRs end in no action at all)

[takeshi74]

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@revvystoke wrote:
I closed my personal Amex card today and was hoping to apply for a no fee card by the end of this month. When I apply should I use the actual income that will be on my 2014 tax return, or estimated (80hr*26) income. I have a 40k business revolving line with them and don't want to lose out because of a FR.

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It's not just FR's where the 4506-T is used.  It's also used for income verification.

If AmEx performs an income verification or FR your 2014 transcripts will not be taken into consideration until August/September of 2015.  I don't recall exactly why (i.e. whether they're just not available or if it's just AmEx policy) but if you're worried about an FR or IV in the timeframe you mention then your 2014 return will not be relevant.

[Anonymous]

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@takeshi74 wrote:

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It's not just FR's where the 4506-T is used.  It's also used for income verification.

If AmEx performs an income verification or FR your 2014 transcripts will not be taken into consideration until August/September of 2015.  I don't recall exactly why (i.e. whether they're just not available or if it's just AmEx policy) but if you're worried about an FR or IV in the timeframe you mention then your 2014 return will not be relevant.

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It is the former, the returns are not made available by the IRS until August of the next year.  Presumably that gives the IRS enough time to finish processing the vast majority of returns, and make the transcript forms available.