michaeljc70 wrote: ↑
Mon Apr 15, 2019 6:58 pm
beyou wrote: ↑
Mon Apr 15, 2019 3:50 pm
michaeljc70 wrote: ↑
Mon Apr 15, 2019 10:36 am
The problem with using a tax return is no income/dividends/capital gains from IRAs would show. Clearly that is income. It is just not taxable income. I would include whatever is on your tax return plus non-taxable income.
They want to know what income you will have access to that you can spend and pay off your bills.
If you are taking RMDs then yes include that, but I would not include an IRA if you are below 60 and not taking RMD yet.
For my kids, I read that if they can reasonably expect $ from parents, that can count.
For myself as a retiree in the future, I would just take my 4% SWR as my income, if that is your SWR.
I can take any or all of my $$$ out of my IRA to pay bills at any time. Or I can pull them from a taxable account. Spending money you have does not make it income. A 4% SWR is a withdrawal and not necessarily income. I don't think they are looking for some number you choose.
This site gives a breakdown amongst a few different cards:
https://millionmilesecrets.com/guides/w ... lications/
In general, it says:
Most banks allow you to include income beyond traditional salaries and wages. You can include things like:
Investment income from stocks and rental properties
Income from others you use to regularly pay your bills if you’re 21 or older
I wish the IRS agreed with you, but they call it income when filing your tax returns.
The reality is that the definition on a credit card app is very flexible and ill defined.
The IRS has it well defined, so that is a possible source of justification of income stated, but not the only one.
https://studentloanhero.com/featured/ca ... lications/
https://www.nerdwallet.com/blog/credit- ... plication/
"In 2013, the Consumer Financial Protection Bureau (CFPB) amended the act to offer more detail."
applicants who are 21 and older can claim any income to which they have reasonable access. The amendment also explicitly states that stay-at-home spouses or partners can count a working spouse’s income on an application.
But the “reasonable access” definition may also extend to the following:
Allowances and gifts <---- who woulda thought gifts = income ?
Scholarships and grants
Trust fund distributions
Retirement income <---------
Social Security income
If a creditor can prove in court that you committed fraud when applying for a certain card, it could make that debt unable to be discharged in a bankruptcy proceeding, says Scott Maurer, an associate clinical professor of consumer law at Santa Clara University. On very rare occasions, people have also been convicted of fraud for lying about their income on credit card applications, resulting in steep fines and jail time.
But if you’ve reported your income to the best of your knowledge, don’t worry about this.
“Proving fraud is not easy, and a consumer who truthfully lists monthly income that happens to be irregular is not going to come close to losing such a suit,”
Seems to me if you are conservative about listing income you can document (RMD distributions, dividends or other)
and you actually pay your bills (an assertion of the OP) then there is NOTHING TO WORRY ABOUT. Nobody will ask to prove
anything unless you default, and if you default after some events out of your control (stock market meltdown and your IRA is wiped out),
then you would have no ramifications in terms of fraud.
This is ill defined for young and not yet employed as well as retired, but just list what you can actually expect to have available to pay your bills and you'll be fine.