I am a w-2 employee who gets my salary, commissions and bonuses through payroll and get w-2'd at the end of the year. My car and phone
allowance is paid off payroll and I receive a w-2 at year end. I obviously expense against the allowances whish brings that figure as income down. I did not qualify for a mortgage due to 10-99's, between me and my wife it brought our income down by $30k. Would putting my car and phone allowances make my chances better?
The lender's basic rule for determining income is "if you don't declare it, you can't use it". Write-offs are considered as deductions to income. You probably feel like you're between a rock and a hard place, but the government is not going to let you have it both ways: undeclared income and then declare for loan purposes.
If you had them paid as part of your W-2 income, you would be in a better position from a loan perspective but would have a higher tax liability.
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