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: Produces court-ready income verification reports from tax returns, W-2s, 1099s, and paystubs for loss-of-income claims, wage and hour disputes, and employment discrimination matters. Generates traceable multi-year wage histories, trend analysis, anomaly flags, and damage-ready financial narratives. Use during discovery or pre-trial to prove damages, establish baseline earning capacity, or support FLSA overtime calculations. Trigger keywords: income verification, wage history, W-2 analysis, earning capacity, FLSA overtime, lost wages, income loss, paystub review, tax return summary.4---56# Income Verification Summary78Convert raw financial documents into a court-ready income verification report with traceable figures, trend analysis, and damage-relevant conclusions.910## Prerequisites11121. Tax returns — at least 2-4 years; note filing status changes across years132. W-2s / 1099s — all employers and income sources for each year143. Paystubs — full period preferred; flag if incomplete154. Schedule C / business returns — for self-employed subjects165. Case context — claim type (personal injury, wrongful termination, FLSA, discrimination), relevant dates, claimant role1718## Output Structure / Process1920### 1) Executive Summary2122Narrative paragraph covering: subject's occupation, employment structure, income trajectory, and headline financial impact. Include specific dollar figures and connect income changes to documented events.2324### 2) Multi-Year Income Table2526| Tax Year | Filing Status | AGI | W-2 Wages | Self-Emp. Net | Other Income | Notes |27| --- | --- | --- | --- | --- | --- | --- |28| YYYY | | | | | | |2930Follow with narrative explaining inflection points and year-over-year growth rates.3132### 3) Employment and Income Source Analysis3334**W-2 employees:**3536| Element | Detail |37| --- | --- |38| Employer / title / dates | Per W-2 and paystubs |39| Compensation breakdown | Base wage, overtime, bonuses, commissions, shift differentials |40| Hourly calculation | Rate x hours from paystubs |41| Lost non-wage benefits | Health insurance, retirement contributions |4243**Self-employed:**4445| Element | Detail |46| --- | --- |47| Business type | Schedule C gross receipts vs. net profit by year |48| Margin trend | Net profit margin year-over-year |49| Subcontractor costs | Flag spikes post-injury (suggests inability to self-perform) |50| Cash receipts | If no 1099 corroboration, flag for bank deposit analysis |5152**All sources:** Distinguish earned income (wages, self-employment) from passive (investment, rental, disability, Social Security). Earned income drives earning-capacity damages.5354### 4) Compensation Component Table (W-2 cases)5556| Period | Base Wages | OT Hours/Wk | OT Pay | Bonuses | Total |57| --- | --- | --- | --- | --- | --- |58| | | | | | |5960Flag if overtime or bonus payments cease at a legally significant date.6162### 5) Income Trend and Pattern Analysis6364- Calculate year-over-year growth rates; compare to CPI if relevant.65- Identify inflection points; correlate with documented events (injury date, termination, demotion, medical leave).66- For pre/post comparisons: state baseline period, post-event period, annual delta, and methodology.6768### 6) Discrepancy and Gap Log6970| Issue | Source A | Source B | Delta | Action Needed |71| --- | --- | --- | --- | --- |72| W-2 vs. paystub mismatch | $X | $Y | $Z | Obtain full-year paystubs |73| Unreported cash income | Schedule C | No 1099s | -- | Bank deposit records |7475### 7) Legal Analysis (by claim type)7677**Loss-of-income / personal injury:**78- State baseline earning capacity (range + methodology)79- Project forward at conservative growth rate (e.g., 3% CPI)80- Calculate annual income loss = projected minus actual; note duration8182**FLSA / wage and hour:**83- Identify weeks with hours > 40 lacking OT premium84- Calculate: OT hours/wk x OT premium x weeks in limitations period85- Cite applicable limitations period; 29 U.S.C. section 207 [VERIFY jurisdiction-specific period]8687**Employment discrimination:**88- Compare claimant raise history and salary to comparable employees89- Quantify wage gap as dollar amount and percentage90- Note tenure, title, and responsibility comparators used9192### 8) Missing Documentation Checklist9394- [ ] Paystubs for complete relevant period95- [ ] All Schedule K-1s if pass-through entity96- [ ] Benefits statements (health, retirement)97- [ ] Bank records to corroborate cash income98- [ ] Comparable employee compensation data (discrimination claims)99100### 9) Conclusions101102Bullet-point summary of: baseline income, income loss figure, supporting documents, and litigation readiness. State whether figures are sufficient to support expert testimony.103104## Guidelines105106- Cite every figure to a specific source document (e.g., "2021 Form W-2, Box 1").107- Flag all discrepancies explicitly; never reconcile silently.108- Disclose assumptions and limitations; incomplete records must appear in conclusions.109- Distinguish earned vs. passive income; passive income is typically excluded from earning-capacity damages.110- Use `[VERIFY]` for any statute, limitations period, or jurisdiction-specific rule not confirmed.111- Present financial facts objectively; no advocacy.112- U.S. jurisdiction only; note state-specific variations where material.
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