Question about pay stubs

[Ann]

Hi everyone, I have another question and I know it may seem silly but my husband and I are having a disagreement about this. Please help to settle. Here goes...When adding up your average monthly gross income for each month in the six months prior to filing do you use the "pay period ending" as the dollar amount for that stub or do you use the "actual pay date"??? I say you use the pay period ending to come up with the figure and he says you use the actual pay date... If you need to determine how much you made in say the month of March but you dont get the actual check until the 2nd of April does it count for your April figure or your March period??? I hope this makes sense. Please answer!

[AngelinaCatHub]

Ann: that is like counting the angels on a head of a pin. It does not matter in that it is an average of six months.

Let's take your scenario, so the pay period is March but no pay till, April so, not counted. Six months ago September (if my math is right) you would have to take Augusts pay from September so you add one on the front, subtract one on the end.

His scenario is, I got paid in September (Augusts pay period) but six months later, in March you subtract the pay period because April is outside of the six months.

It works out the same. Only if a substantial bonus or raise would it matter at all and if you don't mix the two scenarios, your pay should be an average almost equal or close enough for government. Make sense? 'Hub

[Ann]

Hub, forgive me for my ignorance here....the sheet is actually asking for November-April to be able to file in May. He wants to know in EACH month what was our gross earnings. There is a box for each month for me to fill out. Yes, I agree in the end it pretty much is the same but I guess I want to know what to use to figure out such amount. The actual pay date or pay period ending. I really hope I'm making sense.

[AngelinaCatHub]

Hub, forgive me for my ignorance here....the sheet is actually asking for November-April to be able to file in May. He wants to know in EACH month what was our gross earnings. There is a box for each month for me to fill out. Yes, I agree in the end it pretty much is the same but I guess I want to know what to use to figure out such amount. The actual pay date or pay period ending. I really hope I'm making sense.

OK my math is bad. Let me explain slower. November to April. Don't count money paid (for clarity on the 1st) on the first of November because it is October's Pay period. December 1st is November's pay period January 1st pay is for December, Getting to April, May 1st pay is counted as it is for April.

OR

November 1, count that money (even though it is October Pay period) December 1, count that. Up to the last month April 1 count that. May 1 DON'T count that as you picked up Octobers payment in November.

It balances out on average EITHER WAY. So, it is splitting hairs and you are both correct. Use one, or the other but don't mix both as you would get an extra payment in like a 7th month and increase your average by a false amount. The Trustee is NOT going to do the math for you. If he questions the pay stubs, all you need is six months worth. Novembers pay period will be a check issued in December. 'Hub

[AngelinaCatHub]

Hub, forgive me for my ignorance here....the sheet is actually asking for November-April to be able to file in May. He wants to know in EACH month what was our gross earnings. There is a box for each month for me to fill out. Yes, I agree in the end it pretty much is the same but I guess I want to know what to use to figure out such amount. The actual pay date or pay period ending. I really hope I'm making sense.

Further: The check stub will have "Pay period ending" printed on it. December's check stub will have December 1, 2009 with "Pay Period November 1, through November 30". That with a highlighter on that statement or copies of the statements will guarantee that even a Trustee will understand it. LOL. 'Hub

[SMinGA]

Go by pay date. Its what is used for filing taxes, and its what our atty said was needed for filing bankruptcy.

If you have a pay period running Dec. 24-31st 2010 and get paid for it on Jan. 7th 2011, it will NOT be on your 2010 W2s. It will be instead on the 2011 W2s. If you check your very first pay check from Jan. 10, you'll see the check and YTD totals match, no matter what part of 2009/2010 the pay period spanned.

But Angelina is right. Its all about an average. If you're always paid on the 2nd for the month preceding, the average will come out roughly the same no matter how you do the #s.

[jspringator]

My software asks for check date.

[Ann]

Thanks everyone... As much as I don't want to tell him I guess I will have to. He insisted on using the pay date...I hate when he is right... Thanks for putting this issue to rest. I appreciate it!

[AngelinaCatHub]

Thanks everyone... As much as I don't want to tell him I guess I will have to. He insisted on using the pay date...I hate when he is right... Thanks for putting this issue to rest. I appreciate it!

I can attest that Mrs. Cat feels the same

I can only get away gloating so long until I look like this

Then it's time to make amends so:

A guy just can't win. 'Hub

[gmk]

Yes, use pay date. Also, the math isn't always as simple as stated above for bi-weekly pay periods. We were waiting to drop below the median to file in May but as luck and the calendar have it my wife had a 3 paycheck month beginning in the look back and April is a three paycheck month for both of us with the last pay date falling on Friday the 30th. (My timing really sucks) This meant waiting another month - file in June. So instead we filed last week by passing the means test but over median.