Identify the income sources (salary, wages, bonuses, commissions, tips, interest, dividends, rental income, self-employment net income, other income)
Determine the time period for each source (per paycheck, per month, per quarter, per year)
Convert each source to a yearly amount
If per paycheck: multiply by the number of paychecks per year (e.g., 26 for biweekly, 24 for semi-monthly)
If monthly: multiply by 12
If quarterly: multiply by 4
If weekly: multiply by 52
For variable income, use an average
Average the last 12 months (or last 3–5 years and average) for each variable source
If seasonal, weight months according to typical patterns
If self-employed, use net profit (revenue minus business expenses) for the period, then annualize as needed
Add all yearly amounts together to get total yearly gross income
If you need net yearly income, subtract applicable deductions (e.g., taxes, employee retirement contributions, health insurance premiums) from gross income
Validate with pay stubs or tax documents (W-2/1099 or annual statements) and reconcile any one-time payments separately if needed
Report the final figure as either gross yearly income or net yearly income (state which)