How Do I Calculate YTD Income?
Year-to-date -- or YTD for short -- income represents the income you've received so far this year. YTD income for businesses and YTD income for individuals are calculated differently. YTD income for businesses is referred to as net income and is reduced by business expenses. YTD personal income, on the other hand, includes income from all sources and isn't reduced by expenses.
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YTD Net Income
YTD net income equals sales revenues earned so far this year less business expenses incurred. Business owners can calculate YTD income to evaluate how well a company has performed financially since the beginning of the year.
For a business, year-to-date income means the net income earned since the fiscal year began. For example, if it's August 7 and the company's fiscal year begins on July 1, only include transactions that occurred on and after July 1.
- Identify revenue earned so far during the fiscal year. Revenue equates to all of the proceeds from the sales of products and services, plus any interest revenue the company earned.
- Subtract any sales returns, allowances or discounts from total sales revenue earned to determine net sales. For example, if the company has earned $50,000 in sales revenue and incurred $1,000 in discounts and returns, net sales
is $49,000 .
YTD Personal Income
EconReport notes that, for individuals, personal income is income that an individual has received from all sources. Unlike net business income, no expenses are deducted to arrive at personal income.
Unlike businesses, individuals all have the same fiscal year. January 1 through December 31. That means that YTD personal income represents all the income an individual has received since January 1 of the current year .
Personal income includes all money received, even if you were paid upfront and haven't performed the work yet.
To calculate YTD personal income, follow these steps:
- Identify all of the sources that you've received income from so far this year. Common sources of income include wages from a job, Social Security benefits, unemployment compensation, welfare and alimony payments, interest income, dividends and capital gains.
Category: Personal Finance