When Buyers Need to File Taxes Early? In Monday’s Blog, I explained why buyers often do not need to file 2018 tax returns until October.

But there is one case when buyers should file taxes as soon as possible.

Self-employed buyers should definitely file ASAP if their 2018 income was higher than 2017’s (if they want to qualify for a larger loan amount).

To calculate income, lenders typically average the most recent two years of tax returns for self-employed borrowers.

So, if 2018’s income was higher than 2017’s and 2016’s, buyers should file taxes right away.

Lenders also sometimes only require one year of tax returns (for strong borrowers), so those situations make it even more beneficial to file 2018 returns (when income is up).

Salaried/W2 buyers do not need to file 2018 returns, however, to take advantage of higher incomes.

This is b/c we can correlate to their current pay rate that shows up on their pay-stubs and/or verification of employment forms without requiring tax returns.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646

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