Reported Income on Apps

[Anonymous]

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.

[CS800]

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

[webhopper]

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@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.

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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.

[CreditCrusader]

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@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.

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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.

[android01]

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.   

[Anonymous]

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?

[CreditCrusader]

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@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?

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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

[SwiftTone]

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.

[SwiftTone]

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.

[OhioCPA]

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.