Current monthly income refers to the total gross income received by an individual or household on a monthly basis. This term is commonly used in financial and legal contexts, such as bankruptcy or loan applications, to determine a person's or household's ability to meet their financial obligations.
Current monthly income typically includes wages, salary, tips, bonuses, commissions, and other sources of regular income earned during a specific period, usually within the last six months. It encompasses income from all sources, such as employment, self-employment, rental properties, investments, pensions, and government assistance programs, like Social Security or unemployment benefits.
It is important to note that current monthly income refers to the gross amount earned before any taxes or deductions are taken out. It does not include income from nonrecurring sources or one-time windfalls, such as lottery winnings or an inheritance received during the month.
For individuals or households with variable income, current monthly income may be calculated based on an average of the income earned over the past six months or an annualized estimate of income. This allows for a more accurate representation of their ability to meet financial obligations on an ongoing basis.
Overall, current monthly income is a crucial measure used to assess an individual's or household's financial situation, particularly when evaluating their eligibility for certain financial programs, loans, or bankruptcy proceedings.
