Self-employed applicants & 1040s: Box 9 or Box 11?

[longtimenycdweller]

Hello,

I have had stable self-employed income over the past two years. My 2022 and 2023 1040s reflect that.

However, I am confused as to which number, on the 1040s, will be taken into consideration:

Is it Box 9 ("this is your total income") or Box 11 ("this is your adjusted gross income")?

In my case, it makes a difference in whether or not I qualify for some buildings, because Box 9 ("this is your total income") is typically above the income ranges, but Box 11 ("this is your adjusted gross income") is within the income ranges for some buildings.

Both numbers are income numbers after deducting business expenses, hence my question and confusion.

Thank you!

[WildAboutHarry]

First off, don’t eliminate yourself based on your own income calculations. It’s not your job. It’s their job. There are differences of opinion. If you are rejected on grounds of income you can appeal. Self employed people have appealed and prevailed in these lotteries.

Sorry, I don’t have an opinion which box you use.

These resources might be useful for you:
https://www.nyc.gov/site/hpd/service...ome-guide.page

https://www.nyc.gov/assets/hpd/downl...g-handbook.pdf

https://housingconnect.nyc.gov/PublicWeb/faq

[macnyc2003]

Going along with what Harry says, I would put down the income that qualifies you for the apartment. Then let them disqualify you if necessary! Let them do a little work.

[linamonroll]

They'll use your net business income (line 31) from your schedule C to determine your business (self employment) income and then add any other income you have (like gross w2 income) which reflects on the "total income" line on your 1040. Plus any other income not reported on your texts like gift income.

Starting on page 48 of the handbook discusses this a bit: https://www.nyc.gov/assets/hpd/downl...dbook-8-21.pdf

Income guide may also be helpful: https://www.nyc.gov/assets/hpd/downl...de-english.pdf

They are looking to calculate your expected gross income (but in the case of business income, it is profit, which takes expenses in to account).

As other's have said though, it is their job to process your documents and I agree that you should let them do their job rather than prematurely disqualify yourself.

[longtimenycdweller]

Thank you all for the very helpful feedback.