Primary Income on a Means Test

As you can guess, income on the means test is primarily comprised of an debtor and their household's wages.  This is included on Line 2 as gross wages, salary, tips, bonuses, overtime and commissions.  Keep in mind -- this is gross income.  This income is measure for the "last 6 months", which includes the last day of the calendar month prior to the filing of the petition (and back 6 months).  All income is included, whether it is taxable or not.  

Income from the operation of a business, profession or farm is still included.  This is calculated by taking the "gross receipts" and subtracting "ordinary and necessary expenses".  Again, this is captured over the last 6 months.  

More Income on the Means Test

The number of the means test cannot be negative -- so, you can't take a loss and try to apply that to other wages to lower that number.  Expenses cannot be personal income taxes, a company vehicle, or paper losses (i.e. depreciation or mileage rates).  

Rent and other real property income is also calculated as income.  Again, you would take the gross receipts from the last 6 months and subtract the ordinary and necessary business expenses.  This is on Line 4 of the Means Test.  Same as a business income, you cannot have a negative number.  

Interest, dividends, and royalties are also included as income.  This includes any generating assets, from CD's, mutual funds, etc.  

Remember -- you are not going at this alone.  You must rely on your Chester County bankruptcy lawyer to ensure that you calculate the means test properly and include all income.