This makes me sick! Any ideas?

[Dennis1971]

I just finished reading the post about "Kids income" and wish I hadn't. When we first set down with our attorney we came away thinking we were under the median income by about $3000 dollars. After reading this post and answers I'm afraid now I have to include my daughters income of last year which would be $4500. That puts us about $1000 over the median income. That sure sucks! How stiff are they on the amount? Do we have to include her income from last year. I was just googling some other sites and they said it goes by your last 6 months of income before filing, does this mean as long as we make less up until this July when we file we will be alright? Is the tax stimulus check considered income? Would we need to claim it? My wife's job and mine has been really slowly lately, they have been asking us to both take some voluntary time off. If it is based off your last 6 months income before filing and we are really close to the median would it be wrong to take some unpaid time off to keep below the median income?
Thanks

[lrprn]

I just finished reading the post about "Kids income" and wish I hadn't. When we first set down with our attorney we came away thinking we were under the median income by about $3000 dollars. After reading this post and answers I'm afraid now I have to include my daughters income of last year which would be $4500. That puts us about $1000 over the median income.

Unless your daughter contributes the entire $4500 she earns to the running of your household, the amount that she uses to pay for her own expenses will be subtracted back out later in the Means Test.

We had this same situation with our daughter when we filed and that is how it played out, at least in our district.

[Dennis1971]

But will her income apply to the median income test? If we are over the median income level then we will not be able to take the means test right?
Thanks

[MomIcantFindmy]

This never even came up when we filed. No one has said a word about it to us. She uses her pay for her spending and to save for college. Our attorney knew our kids worked and just said well that is their money. We are VERY close on the means test. Also because my husband is unemployed even if they did try to convert us we are negative by over $2000 each month on form 22. Guess we will wait and see what happens....

[momof5]

My 17 year old daughter made $5400 last year( she is already a trainer!) and her income was not even considered. Her money is her money.

MomIcantfindmy: We are negative by $2000 a month!

[Dennis1971]

Wow thats really strange, I guess its all up to the attorney if he wants to include it or not in the median income. I've read where some do and some don't. Did they do the median income test off the last 6 months, right up to the week that you filed?
Thanks

[MomIcantFindmy]

See that is what I thought too!! This is a very odd discussion about including kids income and I am afraid it may scare some people unnecessarily.

[MomIcantFindmy]

No, if you read some other posts here you see that income is 6 calendar months prior to your filing date. So if you file in January (say the 10th) your income is looked at July 1-December 31.

You asked about taking time off to keep your income below the means. I would say that is between you and your conscience/diety or whatever. Many have done that and I would never fault anyone for doing what is best for them and their families. Good luck.

[dragonnfly]

I think its more a district by district thing. If the attorney knows how the trustee feels about it. And its subtraced back out later anyways what real difference does it make. I know it "should" be there but its probally one more thing thats depends on the district you are in. Dragonnfly

[Flamingo]

As it was explained to us at filing, if you claim your children as dependents on your income tax and they have income that contributes to the household (their income eliminates money you would provide to them, i.e. for car insurance, clothing, whatever), their income is considered as part of the household income. Now, this was back in 2002 but since the laws have stiffened up much more since that time, check the matter out with one's own attorney as to your situation and household income situation.

We were also advised that if an adult child lives with you that is not your dependent, whatever that child contributes for room and board is also household income.

[MajorMike]

My 17 year old daughter made $5400 last year( she is already a trainer!) and her income was not even considered. Her money is her money.

MomIcantfindmy: We are negative by $2000 a month!

If you're counting her for the means test as a member of the household, then you have to include her income...or NOT count her. I just asked my attorney in an email.

[momof5]

If you're counting her for the means test as a member of the household, then you have to include her income...or NOT count her. I just asked my attorney in an email.

Not sure exactly what you mean but we were well below the means test..by like $50,000 a year. So even subtracting her from that wouldnt much matter. Still puts us below the means test by about $40,000 or so.