Is means test required?

[LetItGo]

If my income is 80k and my state median is 81k, will I have to do paperwork for the means test? Being self-employed it seems it will be a lot of extra paperwork. Are any red flags raised when you are very close to the median income?

Thanks in advance!

[music12]

your means test paperwork will be very easy because once it comes out under the median, you skip to the end and just sign it.

however, you will need to file schedules I and J, showing income and expenditures. so there is no escaping the paperwork.

[LetItGo]

Thanks Music12,

We'll be filing in September and I'm trying to pull together all my document & info so I'm not scrambling later on.

Thanks,
LetItGo

[justbroke]

If my income is 80k and my state median is 81k, will I have to do paperwork for the means test? Being self-employed it seems it will be a lot of extra paperwork. Are any red flags raised when you are very close to the median income?

You still complete a "portion" of the means test. I like to call it the "top part". That's where the calculation is made and it is determined whether you are over or under the median. If you are under the median, by even $1.00, then you don't complete the full means test (the bottom part).

It's a mechanical test. There's no scrutiny if you're $1 or $1,000 under. What is looked at is what's on your Schedule I and Schedule J. The Schedule J expenses are what will be used to determine whether you have disposable income.

Since you're sell-employed, you may get more scrutiny on your business income and business expenses.

[music12]

Thanks Music12,

We'll be filing in September and I'm trying to pull together all my document & info so I'm not scrambling later on.

Thanks,
LetItGo

that's an excellent idea - it will greatly reduce the stress later on.

[aces67]

that's an excellent idea - it will greatly reduce the stress later on.

Yes it will! That's a great idea!