Hi all, I have a question about reporting income. I receive a annual incentive bonus from the army reverses. It is $10K before taxes. I just received my first bonus check in December. Now, here is my question, how is this calculated in annual income? I would love to include the bonuses when reporting my income. I receive the bonus for the next 3 years annually and after that they starting paying on my 'infamous' student loans. I make a good income already but I wouldnot mind having the boost. I ask this question about income because I have to report the income for my taxes and the W2 came today from the military. Anyone know? I plan to buy a townhome or condo in 12-18 months. roni
RE: What? Thank you. I know how to calculate it. My question was can I really include it when qualifying for a mortgage. I was told on another board that a bonus can not be included. I would really appreciate an answer from someone who knows for sure. Maybe I should just ask a mortgage broker. I am getting tired of this board. When I have a question...what the f---. Someone please save me. roni
RE: What? I think you can include it--a mortgage company will want copies of your W-2s or 1040 anyway. I don't see why you wouldn't be able to count the bonus since it is taxable income.
RE: What? thanks carrot. That makes sense to me. But on another board some months ago, this expert loan guy (not mortgages) wrote that I couldnot include it. I am just trying to get an idea of how much I have to must my ass to qualify for the loan amount I want. roni
RE: What? I know a mortgage is different than a credit card application, but I think anything like you mentioned (a bonus) must be taken into consideration. Credit card apps have a spot for other income, usually, I would include it with the application. What can they do, tell you no?
Roni On the 2 mortgage applications I filled out there was a place for overtime and a place for BONUS, so I would assume they include this is there is a place for it Mom
RE: What? My mortgage application had a place for all income...GROSS PAYROLL...BONUS PAY...OVERTIME PAY...INCENTIVE PAY...SAVINGS BONDS...CASH IN CHECKING...SAVINGS ACCOUNTS...SAVINGS BONDS...STOCK...401K...IRA...OTHER REAL ESTATE...
RE: What? I believe if you have 2 yrs. of bonus history, they will allow you to take the average of those years.
RE: What? When you file your taxes for year 2000, you will add up all W-2's for your total income earned during year of 2000.
RE: Roni Also As Dave pointed out OT has to be for 2 years, not sure if Bonus does as well, but you got it this year and for the next 2 after that so I would think you could use it? You said it stops after 3 years, maybe they don't need to know that? Mom
depends If it is a steady bonus (10,000 for several years) you can probably include it because they know you will get it for a while, and when you no longer get it, you're income will probably be that much higher to make up the difference. The reason that most bonuses can't be used is that they are dependant on performance (company or individual) and you could go quite a while without actually receiving the bonus.
RE: depends Ok so my bonus is an exact amount for 3 years annuallly and doesnot fluctuate like I stated in my post. Does that still apply that it will not count? roni
HERE IS THE REAL ANWER.. FIRST OF ALL, IF YOU ARE WORKING WITH A LOAN OFFICER HE/SHE SHOULD LET YOU KNOW THE ANWER TO THAT QUESTION. YES, YOU COULD CONSIDER THAT AS INCOME. NOT BASE INCOME, BUT MILITARY INCOME. IT'S ON PAGE 2 OF YOUR 1003.