Income Verification Summary
Convert raw financial documents into a court-ready income verification report with traceable figures, trend analysis, and damage-relevant conclusions.
Prerequisites
- Tax returns — at least 2-4 years; note filing status changes across years
- W-2s / 1099s — all employers and income sources for each year
- Paystubs — full period preferred; flag if incomplete
- Schedule C / business returns — for self-employed subjects
- Case context — claim type (personal injury, wrongful termination, FLSA, discrimination), relevant dates, claimant role
Output Structure / Process
1) Executive Summary
Narrative paragraph covering: subject's occupation, employment structure, income trajectory, and headline financial impact. Include specific dollar figures and connect income changes to documented events.
2) Multi-Year Income Table
| Tax Year |
Filing Status |
AGI |
W-2 Wages |
Self-Emp. Net |
Other Income |
Notes |
| YYYY |
|
|
|
|
|
|
Follow with narrative explaining inflection points and year-over-year growth rates.
3) Employment and Income Source Analysis
W-2 employees:
| Element |
Detail |
| Employer / title / dates |
Per W-2 and paystubs |
| Compensation breakdown |
Base wage, overtime, bonuses, commissions, shift differentials |
| Hourly calculation |
Rate x hours from paystubs |
| Lost non-wage benefits |
Health insurance, retirement contributions |
Self-employed:
| Element |
Detail |
| Business type |
Schedule C gross receipts vs. net profit by year |
| Margin trend |
Net profit margin year-over-year |
| Subcontractor costs |
Flag spikes post-injury (suggests inability to self-perform) |
| Cash receipts |
If no 1099 corroboration, flag for bank deposit analysis |
All sources: Distinguish earned income (wages, self-employment) from passive (investment, rental, disability, Social Security). Earned income drives earning-capacity damages.
4) Compensation Component Table (W-2 cases)
| Period |
Base Wages |
OT Hours/Wk |
OT Pay |
Bonuses |
Total |
|
|
|
|
|
|
Flag if overtime or bonus payments cease at a legally significant date.
5) Income Trend and Pattern Analysis
- Calculate year-over-year growth rates; compare to CPI if relevant.
- Identify inflection points; correlate with documented events (injury date, termination, demotion, medical leave).
- For pre/post comparisons: state baseline period, post-event period, annual delta, and methodology.
6) Discrepancy and Gap Log
| Issue |
Source A |
Source B |
Delta |
Action Needed |
| W-2 vs. paystub mismatch |
$X |
$Y |
$Z |
Obtain full-year paystubs |
| Unreported cash income |
Schedule C |
No 1099s |
-- |
Bank deposit records |
7) Legal Analysis (by claim type)
Loss-of-income / personal injury:
- State baseline earning capacity (range + methodology)
- Project forward at conservative growth rate (e.g., 3% CPI)
- Calculate annual income loss = projected minus actual; note duration
FLSA / wage and hour:
- Identify weeks with hours > 40 lacking OT premium
- Calculate: OT hours/wk x OT premium x weeks in limitations period
- Cite applicable limitations period; 29 U.S.C. section 207 [VERIFY jurisdiction-specific period]
Employment discrimination:
- Compare claimant raise history and salary to comparable employees
- Quantify wage gap as dollar amount and percentage
- Note tenure, title, and responsibility comparators used
8) Missing Documentation Checklist
9) Conclusions
Bullet-point summary of: baseline income, income loss figure, supporting documents, and litigation readiness. State whether figures are sufficient to support expert testimony.
Guidelines
- Cite every figure to a specific source document (e.g., "2021 Form W-2, Box 1").
- Flag all discrepancies explicitly; never reconcile silently.
- Disclose assumptions and limitations; incomplete records must appear in conclusions.
- Distinguish earned vs. passive income; passive income is typically excluded from earning-capacity damages.
- Use
[VERIFY] for any statute, limitations period, or jurisdiction-specific rule not confirmed.
- Present financial facts objectively; no advocacy.
- U.S. jurisdiction only; note state-specific variations where material.
1---2name: income-verification-summary3description: >-4 Produces court-ready income verification reports from tax returns, W-2s,5 1099s, and paystubs for loss-of-income claims, wage and hour disputes, and6 employment discrimination matters. Generates traceable multi-year wage7 histories, trend analysis, anomaly flags, and damage-ready financial8 narratives. Use during discovery or pre-trial to prove damages, establish9 baseline earning capacity, or support FLSA overtime calculations. Trigger10 keywords: income verification, wage history, W-2 analysis, earning capacity,11 FLSA overtime, lost wages, income loss, paystub review, tax return summary.12tags:13 - analysis14 - litigation15 - summarization16 - summary17---1819# Income Verification Summary2021Convert raw financial documents into a court-ready income verification report with traceable figures, trend analysis, and damage-relevant conclusions.2223## Prerequisites24251. Tax returns — at least 2-4 years; note filing status changes across years262. W-2s / 1099s — all employers and income sources for each year273. Paystubs — full period preferred; flag if incomplete284. Schedule C / business returns — for self-employed subjects295. Case context — claim type (personal injury, wrongful termination, FLSA, discrimination), relevant dates, claimant role3031## Output Structure / Process3233### 1) Executive Summary3435Narrative paragraph covering: subject's occupation, employment structure, income trajectory, and headline financial impact. Include specific dollar figures and connect income changes to documented events.3637### 2) Multi-Year Income Table3839| Tax Year | Filing Status | AGI | W-2 Wages | Self-Emp. Net | Other Income | Notes |40| --- | --- | --- | --- | --- | --- | --- |41| YYYY | | | | | | |4243Follow with narrative explaining inflection points and year-over-year growth rates.4445### 3) Employment and Income Source Analysis4647**W-2 employees:**4849| Element | Detail |50| --- | --- |51| Employer / title / dates | Per W-2 and paystubs |52| Compensation breakdown | Base wage, overtime, bonuses, commissions, shift differentials |53| Hourly calculation | Rate x hours from paystubs |54| Lost non-wage benefits | Health insurance, retirement contributions |5556**Self-employed:**5758| Element | Detail |59| --- | --- |60| Business type | Schedule C gross receipts vs. net profit by year |61| Margin trend | Net profit margin year-over-year |62| Subcontractor costs | Flag spikes post-injury (suggests inability to self-perform) |63| Cash receipts | If no 1099 corroboration, flag for bank deposit analysis |6465**All sources:** Distinguish earned income (wages, self-employment) from passive (investment, rental, disability, Social Security). Earned income drives earning-capacity damages.6667### 4) Compensation Component Table (W-2 cases)6869| Period | Base Wages | OT Hours/Wk | OT Pay | Bonuses | Total |70| --- | --- | --- | --- | --- | --- |71| | | | | | |7273Flag if overtime or bonus payments cease at a legally significant date.7475### 5) Income Trend and Pattern Analysis7677- Calculate year-over-year growth rates; compare to CPI if relevant.78- Identify inflection points; correlate with documented events (injury date, termination, demotion, medical leave).79- For pre/post comparisons: state baseline period, post-event period, annual delta, and methodology.8081### 6) Discrepancy and Gap Log8283| Issue | Source A | Source B | Delta | Action Needed |84| --- | --- | --- | --- | --- |85| W-2 vs. paystub mismatch | $X | $Y | $Z | Obtain full-year paystubs |86| Unreported cash income | Schedule C | No 1099s | -- | Bank deposit records |8788### 7) Legal Analysis (by claim type)8990**Loss-of-income / personal injury:**91- State baseline earning capacity (range + methodology)92- Project forward at conservative growth rate (e.g., 3% CPI)93- Calculate annual income loss = projected minus actual; note duration9495**FLSA / wage and hour:**96- Identify weeks with hours > 40 lacking OT premium97- Calculate: OT hours/wk x OT premium x weeks in limitations period98- Cite applicable limitations period; 29 U.S.C. section 207 [VERIFY jurisdiction-specific period]99100**Employment discrimination:**101- Compare claimant raise history and salary to comparable employees102- Quantify wage gap as dollar amount and percentage103- Note tenure, title, and responsibility comparators used104105### 8) Missing Documentation Checklist106107- [ ] Paystubs for complete relevant period108- [ ] All Schedule K-1s if pass-through entity109- [ ] Benefits statements (health, retirement)110- [ ] Bank records to corroborate cash income111- [ ] Comparable employee compensation data (discrimination claims)112113### 9) Conclusions114115Bullet-point summary of: baseline income, income loss figure, supporting documents, and litigation readiness. State whether figures are sufficient to support expert testimony.116117## Guidelines118119- Cite every figure to a specific source document (e.g., "2021 Form W-2, Box 1").120- Flag all discrepancies explicitly; never reconcile silently.121- Disclose assumptions and limitations; incomplete records must appear in conclusions.122- Distinguish earned vs. passive income; passive income is typically excluded from earning-capacity damages.123- Use `[VERIFY]` for any statute, limitations period, or jurisdiction-specific rule not confirmed.124- Present financial facts objectively; no advocacy.125- U.S. jurisdiction only; note state-specific variations where material.
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