Using Schedule C Calculator
This document will review how to navigate the Blueprint income analysis tool including the following topics
Step by step instructions
On the income tab choose the borrower the income is being evaluated for
Click the magnifying glass next to the Schedule C income calculator
Enter the most recent tax year being evaluated
The left column is always the most recent year and the right column is the previous year
Enter the correct information for Schedule C based on the guidelines being followed. Enter information just as it is read from the tax return. IncomeXpert will manage if the income is added or subtracted. No changing of sign (positive or negative) is needed when you enter data.
IncomeXpert contains “pop up” messages for income fields with additional requirements to ensure the most accurate income calculation is determined. For example, if you enter a number into line 27A IncomeXpert will remind you that only “onetime expenses, causality losses, and amortization are allowed for the add back”
Click the save/calculate button on the left side of the screen to complete income analysis.
Pay note of the trending arrows
- Green up arrow: the income is stable or increasing
- Red down arrow: the income has declined from the previous year
- The top number (63.5%) is the actual change of income from the previous tax year to the current tax year, the bottom number (10% threshold) is your company setting to "trigger" declining income
Use the income analysis section to choose the correct qualified income analysis
- YTD P/L
- 1 Year Average
- 2 Year Average
- User override ignores all calculations and will report the income submitted as the qualified income
- Not Used
Notes in regard to the borrowers income can be entered in for review by the underwriter, auditor, or investor
