Median Family Income?

[kar]

I have two questions here. Is the median family income based on after tax dollars or total gross income before taxes? Also, if one is self employed, is the income based on adjusted gross income after allowable business expenses?

[lrprn]

I have two questions here.

Is the median family income based on after tax dollars or total gross income before taxes? Total gross income before taxes. Your CMI (current monthly income) is calculated by the means test and equals the total average monthly gross income before taxes that you received during the six full months just prior to filing bankruptcy.

Also, if one is self employed, is the income based on adjusted gross income after allowable business expenses? No, CMI (current monthly income) includes gross income from all sources, including income of a non-filing spouse, regular gifts or financial help from family members, and gross income from a wholly-owned business. Business expenses are deducted elsewhere in the means test calculations.

Hope this helps, kar!