Income requirements

[rb55735 0]

Given our situation we are choosing cr1. Now I have just realized we will be doing this sometime in 2023. My job starts in April 2023. By time we file everything will my 3-5 paystubs be enough to show current income to salary?

[Crazy Cat 41,857]

Yess.  Technically, it takes only one to prove CURRENT annual income.   I think @pushbrk would agree.

[Simplytex 387]

1 hour ago, rb55735 said:

3-5 paystubs

Yes, plus I would assume your employer wrote you an offer letter/contract stating the terms of employment, including salary somewhere? I'd include that too.

[pushbrk 12,883]

10 minutes ago, Crazy Cat said:

Yess.  Technically, it takes only one to prove CURRENT annual income.   I think @pushbrk would agree.

Yes, modern pay stubs show year to date figures, so adding earlier pay stubs accomplishes nothing.  Provide the latest for a full pay period.  Calculate current income as gross pay for a full pay period times the number of pay periods in a full year.  52 weeks, 26 biweeks, 24 bi months, or 12 months.  That's your current income.

[powerpuff 6,700]

~~ Topic moved from CR1/IR1 Progress Reports to Process ~~

[rb55735 0]

23 hours ago, pushbrk said:

Yes, modern pay stubs show year to date figures, so adding earlier pay stubs accomplishes nothing.  Provide the latest for a full pay period.  Calculate current income as gross pay for a full pay period times the number of pay periods in a full year.  52 weeks, 26 biweeks, 24 bi months, or 12 months.  That's your current income.

So given this, even if my previous tax return was poor if I have a paystub in say April 2023 of a paystub providing a YTD of the day I was employed until the next year of 2024. I don't need to worry about the salary requirements.(given my salary will be 45k)

Edited August 23, 2022 by rb55735

[pushbrk 12,883]

8 minutes ago, rb55735 said:

So given this, even if my previous tax return was poor if I have a paystub in say April 2023 of a paystub providing a YTD of the day I was employed until the next year of 2024. I don't need to worry about the salary requirements.(given my salary will be 45k)

In this scenario, you will qualify based on current income but it is still a judgment call.

 

Note that the formula does not relate to any calendar year beginning or end.  It is not "How much will you make this year?"  It's "What is your current annual income?"  If you get a job ANY day of ANY year, making a thousand a week, your annual income changes from zero or whatever, to 52k.  I said "in a full year" not "for the rest of this or next year".

 

The year to date is only important because it means more than one pay stub doesn't add any information.  They can see from the one pay stub everything they would see from ALL your pay stubs at that pay rate.

Edited August 23, 2022 by pushbrk