What is considered income after retirement?

[JJF]

Before I retired and began collecting social security, I considered my annual income to be my gross after tax income as reflected on my W-2.  It was adequate for credit card and loan applications,  I never included dividends, interest income, capital gains as it wasn't worth the effort to document them on loan applications.

Pre-COVID, before retirement I asked Navy Federal if I could get a 400k mtg on my 600k home with only my social security income.  They asked if I had other assets, I told them about my pre tax and after tax IRA and 401K accounts,  there response was no problem with a mortgage.  

One web search documented my HELOC unused credit line could be included as "income".   

When the credit card message box pops up in the screen asking me to update my income, what is an appropriate response?

Thanks in advance for your responses.

[NoHardLimits]

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@JJF wrote:

Before I retired and began collecting social security, I considered my annual income to be my gross after tax income as reflected on my W-2.  It was adequate for credit card and loan applications,  I never included dividends, interest income, capital gains as it wasn't worth the effort to document them on loan applications.

Pre-COVID, before retirement I asked Navy Federal if I could get a 400k mtg on my 600k home with only my social security income.  They asked if I had other assets, I told them about my pre tax and after tax IRA and 401K accounts,  there response was no problem with a mortgage.  

One web search documented my HELOC unused credit line could be included as "income".   

When the credit card message box pops up in the screen asking me to update my income, what is an appropriate response?

Thanks in advance for your responses.

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I use the numbers from my most recent tax return as verifiable income.  For me, that's Social Security, pension, interest/dividends, traditional IRA withdrawals.

[Patient957]

You want your gross PRE-tax income from all sources.  On IRS Form 1040, the gross pre-tax income (also called total income) is reported on Line 9.

So your total income from line 9 last year, or if you're estimating for the current tax year, it's whatever you expect total income to be for this year.

[shana598brush]

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@JJF hhaexchange wrote:

Before I retired and began collecting social security, I considered my annual income to be my gross after tax income as reflected on my W-2.  It was adequate for credit card and loan applications,  I never included dividends, interest income, capital gains as it wasn't worth the effort to document them on loan applications.

Pre-COVID, before retirement I asked Navy Federal if I could get a 400k mtg on my 600k home with only my social security income.  They asked if I had other assets, I told them about my pre tax and after tax IRA and 401K accounts,  there response was no problem with a mortgage.  

One web search documented my HELOC unused credit line could be included as "income".   

When the credit card message box pops up in the screen asking me to update my income, what is an appropriate response?

Thanks in advance for your responses.

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Hello,
After retirement, you can report Social Security, pension, annuity payments, IRA/401(k) withdrawals, dividends, interest income, and even accessible assets or household income as valid income on credit applications. For credit card updates, include your total gross annual income from all reliable sources you regularly access. This ensures accurate reporting and may improve credit offers.

Best Regards,
Shana Brush

[Pppoolboy]

I just put down the maximum number that hopefully won't trigger some sort of review.  You mean people actually calculate their income for these purposes?  Fascinating

It's like with accounting... you first figure out the bottom number that you want, and then make sure the top numbers work out to get there.

[michaelmorgan123]

You’re asking a really good question, this trips up a lot of people after retirement. Once you’re no longer earning a paycheck, “income” isn’t just what shows up on a W-2 anymore. Lenders typically consider anything you can reasonably access to repay credit as income. That means your Social Security benefits definitely count, as do pension payments if you have them. Regular withdrawals from your IRA or 401(k) also qualify, and even consistent interest, dividends, or rental income can be included. Some lenders will also factor in your accessible assets, like savings or investment accounts, and estimate a monthly “income” based on what you could safely withdraw. So when the credit card or loan form asks you to update your income, it’s fine to include your Social Security along with a realistic annual amount you could withdraw from retirement funds or investments. The goal is simply to give an honest picture of your financial capacity, not just your fixed monthly benefits.