American Express

Posts Tagged ‘Worksheet’

The income side of the Cash Flow Worksheet is broken into six categories: earned, self-employment, family, government, retirement, and investment income. The following is a brief guide to what kinds of income fall into each category. (For each of the six categories, we have provided a line on the worksheet to subtotal the income, which will make it easier to add up your total income at the end of the worksheet.)

Earned income. The most common and largest source of income for most people, of course, is their salary from a job. You should note on the worksheet your net take-home pay, after deductions. Other sources of earned income include commissions paid to salespeople, bonuses for extraordinary performance, overtime, and tips. You may also be entitled to stock options, which give you the right to buy your company’s stock at a preset price, usually below the current market value, and the right to sell the shares for a profit. There are also many forms of deferred compensation that can be paid out to you, based on your performance or in accordance with the provisions of a contract. If you expect to exercise stock options or receive deferred compensation in the next year, you should note this on the worksheet.