Question about Income

[majorwest]

Met with my attorney the other day. Looking at my last 6 months of income he said I'm just over the median, whereas when I computed my income it fell just under. The difference is that he counts the number of paychecks that fall within the 6 month period and I only counted the last 12 paychecks (bi-weekly). Since the number of weeks in a month vary, your 6 month income level can vary depending on which 6 month period you fall in to.

Is this the correct way to compute income? The amounts of my paychecks are consistent, but using his formula doesn't make sense. Isn't it more realistic to simply count back the number of paychecks, instead of the number of months? He says I'll have to wait a couple of months to file because a couple of paychecks will fall off by then.

Confused.

[whipster1]

Yep they use the checks you receive in that period, and sometimes you get three checks a month. Wait a few months if you have to, and avoid all the scrutiny that being over median will cause.

[jribe]

you count what was actually received during the last 6 months.
(The Attorney is right)
There are actually three different income numbers you give on your forms anyway. If you're only slightly over- i wouldn't worry about it. You just have to make sure you have the expenses to cover the DI.

[majorwest]

Thanks for replies.

I just think that computing income levels using a "monthly" standard makes more sense for those who are paid a monthly salary. But for the many of us who are paid bi-weekly, the monthly formula doesn't really fit.

Oh well, the waiting game begins..sigh.

[OhioFiler]

Thanks for replies.

I just think that computing income levels using a "monthly" standard makes more sense for those who are paid a monthly salary. But for the many of us who are paid bi-weekly, the monthly formula doesn't really fit.

Oh well, the waiting game begins..sigh.

Your monthly standard = 2x each bi-weekly check + 1/6th of a bi-weekly check. 12 months and 26 paychecks.