Income Calculation (employment, calculating, taxes)

[Cty_lyy]

How would your income be calculated? Is it what your salary is after tax or before tax?

Appreciate anyones input, thanks!

[linamonroll]

They will calculate your gross income, before tax. If you're self employed, that income is net (after business expenses), but before taxes.

Read this: https://a806-housingconnect.nyc.gov/...e_Guide_en.pdf

And if you want more detail, the income section here: https://www1.nyc.gov/assets/hpd/down...dbook-8-21.pdf

[Cty_lyy]

Thank you! Really helpful!!!

[WildAboutHarry]

Originally Posted by Cty_lyy

Thank you! Really helpful!!!

Do a good job calculating your income but don’t be obsessed by it. They will also calculate your income. The two numbers might not agree. That might not matter unless their calculation eliminates you from eligibility and/or changes the bracket you fit. If it does have a negative impact on you resulting in a rejection you are allowed to appeal. Appeals can succeed.

Odd things: In some lotteries an applicant can fit more than one bracket. As time goes on, a lottery might want to see 2022 tax returns, W2s, 1099s, etc. In the mid spring some lotteries, particularly new lotteries can redraw the AMI% levels and sometimes the change is significant.

[shadowfax_7]

You should read the guidelines the HUD wrote on calculating income. There are various methods that can be used, especially when it comes to income that is more sporadic, often self-employment income. But general rules are they use the most current net income (before tax amount), to make a project for the next 12 months. You, or your accountant know your finances and employment better than the agent calculating your income, so you might be able to offer helpful info, like, you work as a teacher, and your income does not carry into the summer months, in the last couple paychecks you received overtime that you do not expect to receive in the future, and other info that would be used to make adjustments to your projected income. Calculation is more of an art, and the big word is REASONABLE. You, and your agent needs to to make a reasonable projection of your income. If there is any reasons the agent doesnt make a reasonable projection, and you disagree, you should do your own math, and explain it clearly to your agent. I've had success with this as someone who has always had multiple employers, and is self employed. I gave all my documents, my maths, and explained my reasoning for my calculations carefully, and the agent used my math.

HUD manual. Chapter 5 is income calculation:
https://www.hud.gov/sites/documents/DOC_35649.PDF