Report Household Income

Money you get from a spouse you no longer live with or a former spouse, if it’s paid to you as part of a divorce, separation agreement or court order. Child support payments or non-taxable property settlements ordered or designated in the agreement are not alimony. Get more information from IRS Publication 504 (PDF). 

If you select “Alimony,” you’ll be asked to enter the amount and how often you get it. If your divorce or separation was finalized:  

• Before January 1, 2019: Include alimony as income.

• On or after January 1, 2019: Don’t include alimony as income.

You can send BeWell copies of any of these documents for verification:  

• Court order stating alimony amount  

• Signed statement from individual providing alimony with amount, frequency and date divorce/separation was finalized

The amount you profit from selling property. For example, if you buy stock for $1,000 and sell it for $1,250, you have a capital gain of $250. You don’t have to include a capital gain if it is from the sale of the main home you owned for at least five years (and the profit is less than $250,000). For more information, view IRS Publication 17 (PDF) or view IRS Publication 544 (PDF). 

If you select “Capital gains,” enter your expected capital gains income after subtracting estimated capital losses. The number you enter can be positive to reflect a gain or negative if you expect a loss. 

If you have income from farming or fishing, you can enter it as either “farming or fishing” income or “self-employment” income. You can only choose one type.

Farming income includes money you earned from cultivating, operating or managing a farm for profit as an owner or tenant. A farm can include livestock, dairy, poultry, fish or fruit. It can include plantations, ranches, ranges and orchards. Get more information on farming income (PDF).

Fishing income includes money you earned from catching, taking, harvesting, cultivating or farming fish, shellfish, crustacean, sponges, seaweeds or other aquatic forms of animal or vegetable life. It also includes money from patronage dividends and fuel tax credits and refunds. Get more information from the IRS Fishing Tax Center. 

If you select “Farming or fishing,” you’ll be asked how much you get from these types of income and how often you get this amount. Enter your net farming or fishing income (your profit after subtracting business expenses). You’ll enter a positive number to reflect a gain or a negative number for a loss. 

If you select “Self-employment”: Describe the work as “Farming or fishing.” For more information from the IRS, visit Instructions for Schedule C or read IRS Publication 334 (PDF).  

Examples of investment income include interest you get from a bank account or dividends from stock. Get more information from IRS Publication 550 (PDF).

If you select “Investment,” you’ll be asked to enter the amount you get from investment income such as interest and dividends and how often you get it. Include any non-taxable interest income. 

Look at a recent pay stub that shows what you usually make. Your income is the amount before taxes are taken out. 

Report “federal taxable income,” not including tips. Do not include tips or money your employer takes out of your paycheck for childcare, health insurance or retirement plans. Each of these should be listed separately on your pay stub. Subtract these amounts from the total income shown on your pay stub and report that number as your income. If your pay stub shows “federal taxable income,” just use that number. 

You can send BeWell copies of any of these documents for verification:

• Paycheck stubs showing employee information, pay date or pay period and gross amount of pay for the 4 weeks prior to the date listed on your notice. 
• 1040 federal or state tax return from the previous year if representative of attested income. 
• Wages and tax statement (W-2 and/or 1099, including 1099 MISC, 1099G, 1099R, 1099SSA, 1099DIV, 1099SS, 1099INT) showing first/last name, income amount, year and employer name (if applicable). 
• A signed earning statement from your employer showing first and last name, company contact information and gross pay information, signed by the employer and dated. 

A payment or series of payments made after a person retires from work. The amount of the income from a pension account distribution depends on the type of pension account, how much was contributed to the account and whether those amounts were already taxed. You don’t have to include a qualified distribution from a designated Roth account as income. Get more information from the IRS (PDF). 

If you select “Pension,” enter the amount you get from pension account distributions and how often you get this amount, even if you aren’t retired. 

You can send BeWell copies of any of these documents for verification:  

• Award letter/certificate dated within the last year  
• Annual benefit statement 

Rental income is the amount someone pays you to use your property after you subtract your property expenses. For information on renting personal property such as equipment, read IRS Publication 17 (PDF).

Royalty income includes any payments you get from a patent, copyright or a natural resource you own. For more information, read IRS Publication 17 (PDF). 

If you select “Rental or royalty,” you’ll be asked how much you get from these types of income and how often you get this amount. Enter your net rental or royalty income (profit after subtracting costs) as a positive number if you’ve made a profit or as a negative number if you’ve had a loss. 

You can send BeWell copies of any of these documents for verification:  

• Rent checks or rental payment receipts  
• Current lease  
• Signed letter from tenant with monthly rent amount  
• Filed tax return if representative of attested rental income  

A retirement benefit is generally a payment or series of payments made after someone retires from work. The amount of the income from a retirement account distribution depends on the type of retirement account, how much was contributed to it and whether the amounts contributed were already taxed.

You don’t have to include a qualified distribution from a designated Roth account as income. Get more information from IRS Publication 575 (PDF). If you select “Retirement,” enter what you get as a distribution and how often, even if you aren’t retired. 

You can send BeWell copies of any of these documents for verification:  

• Award letter/certificate dated within the last year  
• Annual benefit statement 

The net income (profit) you earn from your own trade or business. For example, any profit you earn from goods you sell or services you provide to others counts as self-employment income. Self-employment income could also come from a distributive share from a partnership. 

Your net self-employment income is generally what you report on Schedule C—Profit or Loss from Business when you file your federal income taxes. Learn how to report if your self-employment income is hard to predict.

If you select “Self-employment,” you will describe the work. For example, if you clean houses, enter “house cleaning.” If you work in construction, enter “construction.” For more information, view Instructions for Schedule C or IRS Publication 334.

To enter the net income from self-employment, you’ll enter either a positive number (profit) or negative number (loss): 

• If your expenses are less than your income, the difference is net income (net profit).  
• If your expenses are more than your income, the difference is a net loss (if you’re a partner, include your distributive share from the partnership). 

Explore expenses you can deduct from self-employment income. 

You can send BeWell copies of any of these documents for verification:   

• Self-Employment ledger documentation showing first/last name, company name and income amount. If you’re submitting a self- employment ledger, include the dates covered by the ledger and the net income from profit/loss (such as a Schedule C, the most recent quarterly or year-to-date profit and loss statement or a self-employment ledger). 
• 1040 SE with Schedule C, F or SE (for self-employment income).  
• 1065 Schedule K1 with Schedule E.  
• Tax return.  
• Bookkeeping records.  
• Receipts for all allowable expenses.  
• Signed time sheets and receipt of payroll if you have employees.  
• Most recent quarterly or year-to-date profit and loss statement.  

These are the amounts you get from Social Security disability, retirement (including income from railroad retirement (RRB)) or survivor’s benefits each month. Do not include Supplemental Security Income (SSI) benefits. 

If you select “Social Security benefits,” you’ll enter the amount you get from Social Security benefits. You’ll also select how often you get this amount: one time only, monthly, or yearly. You can find the amount on the cost–of-living adjustment (COLA) increase letter you get from Social Security each year.

Enter the full amount before any deductions such as Medicare premiums, income tax withholding, overpayments, child support, or alimony. Include any non-taxable portion as income. If you are getting an extra payment this month, include it when you enter your monthly amount.

You can send BeWell copies of any of these documents for verification:  

• Award letter/certificate dated within the last year  
• Annual benefit statement  
• Correspondence from the Social Security Administration with your award status (denied, award amount, still pending)  

This includes any amount you get under an unemployment compensation law of the United States or a state. You usually must include unemployment benefits as income, including from an employer or union. See limited exceptions from the IRS. 

If you select “Unemployment,” enter the name of the employer or state government providing the benefit, the amount of money you get and how often you get this amount. 

You can send BeWell copies of any of these documents for verification:  

• Award letter/certificate  
• Monthly benefits statement from the New Mexico Department of Workforce Solutions  
• Copy of direct payment card with statement  
• Letter from the New Mexico Department of Workforce Solutions with reason for denial  

You and the people in your household might have other types of income. If you do, select “Other Income” in your BeWell application. If you select “Other Income,” you will be asked to enter the amount of your income and how often you get it. 

If you are a member of the clergy or a religious order, exclude the same income you exclude on your federal income tax return. 

Here is a list of “other income” types to report:  

• Canceled debts: If you had a debt (such as from a loan or line of credit) and a portion of the amount you owed was discharged, the amount of the forgiven debt is generally counted as income.  
• Court awards: If you were involved in and got money from a lawsuit, the money you get may be reportable as taxable income depending on the nature of the claim.  
• Example of taxable: Payments to compensate for lost wages or punitive damages awards. 
• Example of nontaxable: Amounts awarded for personal physical injury or sickness; an amount you get for property damage if the payment is less than what you paid for the property.  
• Jury duty pay: Including reimbursement for transportation. Do not enter money that goes straight to your employer.  
• Cash support: Enter cash only if a tax filer who is not your parent or spouse claims you as a dependent on their tax return and they are including you on their application for health insurance coverage. For example, if the tax filer gives you $200 per month to help pay for rent or other living costs, include that amount here. Do not include in-kind support that the tax filer provides such as clothing or room and board.  
• Gambling, prizes or awards such as lottery winnings.  
• Taxable scholarships, grants and work-study job income.