How do you determine your income? Is it by the amount you get paid or is it the amount of your whole "package"?
Example - Joe gets a paycheck of $1,600/week before taxes ($83,200).
Joe also earns pension, full health and dental, annuities and legal services which totals $800/week
So does Joe make $83,200/yr or $124,800/yr.
- AmyLv 73 weeks ago
Fortunately, you aren't the one who has to determine this - your employer is.
Most benefits are not taxable. However, some of them are.
A friend of mine works for a car company that lets him drive a company car and reimburses for gas for that car - even when he uses the car for non-business travel. His use of the car is not included in taxable income, but the gas payments are.
This site might help:
- Max HooplaLv 73 weeks ago
The wages plus the pension are his income.
- 3 weeks ago
Income is your paycheck.
- EvaLv 73 weeks ago
The amount of your paycheck is what is considered income for tax and loan purposes. If you are evaluating a job offer, you would include the benefit amount in figuring out the total package.
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- cynic47Lv 63 weeks ago
What are you using the figure for? If you are determining your taxes, they are based on "income," which does not include most "fringe benefits" such as pension, medical, etc. If you are deciding which of two job offers to accept, however, you should take into account "total compensation" which includes the value of fringe benefits. Normally, you'd rather take a job paying $83,200 in cash plus fringes, instead a job paying $85,000 but which provides no pension or medical benefits at all.
- SumDudeLv 73 weeks ago
Your income is your gross wages (including cash bonuses). Joe may or may not use the other benefits.
- Anonymous3 weeks ago
Benefits do not count toward income.
INCOME is what counts toward household income. Depending on what you need to report income for, that might be NET income - after taxes and other deductions or it might be GROSS income which includes money that goes towards taxes and other deductions.
But - benefits like health, dental, and other things that are not actually money are not included as "income". You can't use those things to pay a debt.
- Anonymous3 weeks ago
Joe makes $83k/year but his total compensation is $124k.
You can't pay rent or buy groceries with dental.
Income refers to money, not fringe benefits.