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If I have 1099 income of 115,000.00 and open a SEP-IRA and…

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If I have 1099 income...
If I have 1099 income of 115,000.00 for 2015 and open a SEP-IRA and contribute $28,750.00 to the SEP-IRA with no other deductions, can I use the 115,000.00 when applying for a mortgage as my income or will they only count $86,250.00 for my eligible mortgage income?
Submitted: 2 years ago.Category: Tax
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2/19/2016
Tax Professional: Lev, Tax Advisor replied 2 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,845
Experience: Taxes, Immigration, Labor Relations
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Please verify if you correctly calculated SET contribution amount...
Otherwise - for mortgage eligibility purposes - AGI will be used - that is after deducting a half of self-employment taxes and deducting retirement plan contribution.

That is an amount from form 1040 line 37

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Tax Professional: Lev, Tax Advisor replied 2 years ago

Depending on the lender - they may add your retirement plan contribution and other not taxable income - but that must be communicated separately.

As we know - lenders are based their decision on TOTAL income which includes both - taxable and not taxable portions.

However each lender might have slightly different requirements to which income is included and which is not.

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If you still have any doubts, need clarification - please be sure to ask.
I am here to help you with all tax related issues.

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