Income on credit apps

[krial]

So I'm self-employed and I don't make a whole ton of money. If I gross about $90k in sales, but after stock and other expenses I'm only actually netting $14k profit, what do I list for income? I always put $14k on my credit card apps, which leaves me with obviously small limits -- this is rather annoying when I can easily put $7k per month through the card and it has a $1k limit.

Am I doing it wrong? LOL. Should I be putting the $90k instead of the $14k? Or if I have been doing it correctly, do you think a call to an analyst to explain and fax over a profit/loss statement or some tax docs would get me a more useful limit?

[Anonymous]

Hi krial,

I don't have an answer for your question, but I do have a question for you. I see you have a Barclaycard. Are you happy with it? How long have you had it?

[krial]

Had it for a couple of months. I'm very happy with it, and the 2% cash back actually categories apply to more random places than it says (for example, the local pharmacy).

Only thing I'm not happy about is they silently, sneakily and stealthily removed from my terms of service the sentence about the $25 bonus for making a purchase when they approved me. Everything else was spot on for what I applied for except for that. It's the world's smalles bonus anyway and doesn't matter, but it still feels like a slap in the face!

Great card though, regardless. Hopefully it grows with me.

[Anonymous]

Thanks for the info

[chwebb1]

I believe you would put the 90k on there, since it asks for income, and not profit.

[Moleman_H]

If they ask for income, the 14k in profit is what they care about (since the 76k in business expenses out of the $90k business revenue are not available for paying back any CC debt you might accumulate).

Look at line 22 of your 1040 (total income).

[indiolatino61]

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@krial wrote:

So I'm self-employed and I don't make a whole ton of money. If I gross about $90k in sales, but after stock and other expenses I'm only actually netting $14k profit, what do I list for income? I always put $14k on my credit card apps, which leaves me with obviously small limits -- this is rather annoying when I can easily put $7k per month through the card and it has a $1k limit.

Am I doing it wrong? LOL. Should I be putting the $90k instead of the $14k? Or if I have been doing it correctly, do you think a call to an analyst to explain and fax over a profit/loss statement or some tax docs would get me a more useful limit?

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Interesting question...some would say input the $14K, since that is your net income. However, most everyone inputs their gross wages, not their take-home pay. IMO, if you are using the card for business expenses and are PIF all the business's expenses, I don't see anything dishonest in inputting the $90K. As long as all of your sales are balanced with your card PIF payments, there should be no issues for you. Some would say what if your sales dwindle? Yes, but anyone can also be laid off or have reduced hours. It seems that whatever you decide, there is no "wrong" thing to do if viewed equally from both sides.

[compassion101]

You should apply for a business card.

The 14k is your income. 90k is business revenue, not gross pay as someone stated above. You have a legit business with 90k revenue, if you can prove it you may be able to get a decent business card.

[efranklin23]

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@compassion101 wrote:

You should apply for a business card.

The 14k is your income. 90k is business revenue, not gross pay as someone stated above. You have a legit business with 90k revenue, if you can prove it you may be able to get a decent business card.

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+1 

[Revelate]

Business card is different than personal, and I agree that the 90K gross is more applicable there.

Fact is whatever is not being claimed as taxable income (I'm assuming this is a sole proprietorship?) is technically and I suspect legally not valid to be put on a personal credit card application.  Someone's statement of simply claiming the taxable income from your 1040 was correct in this instance.