Where to Find Your Gross Monthly Income
Easily locate your gross monthly income. This guide helps you accurately identify this key financial figure for budgeting and planning.
Gross monthly income represents the total earnings an individual receives from all sources before any deductions, such as taxes, insurance premiums, or retirement contributions. This figure is important for budgeting, applying for loans, or assessing overall financial health.
From Your Pay Stubs
For employed individuals, pay stubs are a primary source for determining gross monthly income. Look for terms like “Gross Pay,” “Gross Earnings,” or “Current Gross” on your pay stub, which represent the total amount earned for that specific pay period before any withholdings. If you are paid weekly, bi-weekly, or semi-monthly, annualize this figure and then divide by 12 to arrive at a consistent monthly amount. For instance, a bi-weekly gross pay can be multiplied by 26 and then divided by 12 months.
Some pay stubs may also show a “Year-to-Date Gross” (YTD Gross), which is the cumulative gross income earned from the beginning of the calendar year. While Box 1 on a W-2 form reports federal taxable wages, which may be lower than your total gross pay due to pre-tax deductions, your pay stub’s gross pay figure offers the most immediate and complete picture of your earnings.
From Tax Documents
Tax documents provide an annual summary of income, which can be converted to a monthly gross figure. For employed individuals, your Form W-2 reports your total taxable wages in Box 1. To determine an average monthly gross income from your W-2, divide the amount in Box 1 by 12.
Independent contractors and freelancers receive Form 1099-NEC, where Box 1 shows total nonemployee compensation. For those operating a small business as a sole proprietorship, gross income is reported on Schedule C (Form 1040). The annual figure from these tax forms can then be divided by 12 to calculate an average monthly gross income.
From Self-Employment Records
Individuals who are self-employed or operate a small business calculate their gross monthly income using internal business records. Gross income for self-employment includes all revenue generated from sales of goods or services before any business expenses are deducted. This means aggregating all payments received from clients or customers, as well as any other income related to business activities.
Reviewing invoices, sales records, and bank deposit statements provides the necessary data. Accounting ledgers or profit and loss statements also track total revenue. Maintaining meticulous records is important for reporting gross income on tax returns.
From Other Income Sources
Beyond employment or business earnings, several other sources contribute to gross monthly income. For those receiving government benefits, statements from agencies like the Social Security Administration will detail gross Social Security benefits. Unemployment benefit statements or disability payment records show the gross amounts received before any deductions.
Pension statements outline the gross annual or monthly pension payments. For rental property owners, gross rental income includes all payments received from tenants before deducting any expenses like maintenance or taxes. If you receive child support or alimony, the gross amount is specified in court orders or payment records.