Tax Return Income


LoanSafe Member
Jul 16, 2012
So would like to get a 2nd home eventually but need to show more income for DTI purposes.

I'm a W-2 employee but also building a new small business to help bring in more income due to

the covid days. I know the extra work is 1099 so how do I show the 1099 income along with

my W-2 on my tax return? Also I make annual income from a brokerage account I have. Can

I add that to my return as 1099 income?

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
San Diego, California
Hi Faroff,
For new self employed businesses or income we would average the past 2 years of tax returns through the Fannie Mae Schedule C income calc. Depending on what you write off can affect what income we will be able to use or not use. A new business unfortunately you may not be able to use the income at all. It's similar to a 2nd job, we need to show proof the borrower has had the 2nd job for 2 years and then we can use the income. With self employed income we have no idea what the expenses will be without reviewing taxes which is why 2 years would be required (until your business has been in existence 5+ years).

I hope this helps answer your question. If you're receiving commission income at your W2 job, we can use all of that income without requiring taxes anymore because you can no longer 2106 expenses on your returns.