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Old 03-26-2013, 11:56 AM
 
132 posts, read 1,158,187 times
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On my W2s from last year, it shows $40,000 in field #1 (Wages, tips, other comp.) then $36,000 in field #3 (social security wages) and in field #4 (Medicare wages and tips).
In field #14 (Other), it says "Health Insurance $4000".

For qualifying purposes, will the amount shown in field #1 of $40,000 be used, even though part of it was paid as health insurance benefits? I am self employed by the way and this is how the accountant sent over the W2.

Additionally, on the taxes Form 1040, do they use line #22 (This is your total income) or line #37 (This is your adjusted gross income)? My adjusted is lower than total because the health insurance is taken as a deduction.
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Old 03-26-2013, 12:34 PM
 
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Gotta dig deeper. What is the nature of your self employment? What personal and business tax forms do you file?
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Old 03-26-2013, 12:41 PM
 
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S-Corporation and I file Form 1120S for the business and Form 1040 (with W2 and Schedule K1) for personal taxes.
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Old 03-26-2013, 12:52 PM
 
132 posts, read 1,158,187 times
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I actually found a very informative webinar online that really goes in-dept on how to evaluate the self employed borrower.

Seems pretty straight forward for the self-employed filing an 1120s. Take the income from Line 7 on personal taxes Form 1040, add in the income from Schedule E Line 32 (same figure as what is reported on the K1), then add in the Depreciation from Line 14 on Form 1120S and that is the total qualifying income.


In-browser view: https://docs.google.com/viewer?url=h...psewebinar.ppt
Or direct link to download: http://portal.hud.gov/huddoc/psewebinar.ppt
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