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Let's say you're having a three-month job every year, and during those three months, your annual salary is $12*. (i.e. It's not an hourly job, but a full-time job -- you earn $3 during those three months, but the government considers it to be a $12/year job, and taxes you based on that... though you'll obviously get refunded the excess amount at the end of the year.)

During the rest of the year (including right now), you don't have any income.

Now you want to apply for a credit limit increase, which asks for your "annual salary and wages".
(It also has a space for "other income", which is for things like interest, dividends, social security, retirement benefits, etc.)

What should you put ($12, $3, $0?) and where should you put it?
Would the answer be different if you were currently in the three months of employement?

Yes, this is a ridiculous number. :)

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What creditors want to know is how much you get paid a year. They don't care about the numbers in your contract, they want to know the numbers in your paycheck. Your annual salary, in this example, is 3K - that's what you earn a year.

By the way, the government taxes you based on your actual earnings. The withholding is calculated by your employer, based on certain assumptions (for example, that you're going to continue earning the same salary throughout the year), but you can control that through your W4.

  • So even though employer's withholding is based on $12, you need to say $3 when applying for a credit increase? Sounds like a lose-lose situation. :( – Mehrdad Jan 12 '12 at 23:03
  • Credit increase, you mean. As I said - you control the withholding. Its not the actual taxes that you owe, necessarily. – littleadv Jan 12 '12 at 23:05
  • WHOOPS XD yeah typo, fixed it. :) Huh, ok, thanks. +1 – Mehrdad Jan 12 '12 at 23:07
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    @Mehrdad Not necessarily. It is reasonable to infer that if you qualify for a job that pays $12 on an annualized basis, you'll get a similar job when the contract lapses. – duffbeer703 Jan 13 '12 at 2:53
  • @duffbeer703: Not really, because you could be busy during the rest of the year (e.g. a student). – Mehrdad Jan 13 '12 at 3:28

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