<< Click to Display Table of Contents >> Navigation:  Using the Geographic Assessor > Frequently Asked Questions > Using the Geographic Assessor > Using GA FAQ #16 Frequently Asked Questions

QUESTION: Can you use net income instead of annual gross in the Geographic Assessor?

 

Yes, you can, but we strongly recommend that you do not.  

 

Using a net income will produce misleading allocations based on the false assumption that the Annual Earnings value is the total gross annual earnings that is subject to taxation and thus controls the lifestyle allocation patterns.  It is possible for a user to enter his/her net pay (after taxes and other optional deductions) as the Annual Earnings and then zero out the income tax fields.  However, this will be false and the relocation calculations will be ultimately misleading: 

 

1.The residual values subtracted from the actual gross to yield a net figure may include elements otherwise covered in other Geographic Assessor categories, such as savings plan deductions, extra withholding, garnishments, repayment of debts, etc.;

2.The effect of home mortgage interest deductions in the US will not be reflected in the Income and Payroll Taxes category; and

3.The Geographic Assessor will allocate the value entered under Annual Earnings as determinative of the lifestyle of the designated family living on that total annual income amount, which will not be true.  That will greatly understate the lifestyle expenditure pattern of the family because it will only allocate the net amount rather than the true gross income.

 

See Two City Comparison - Background for more information.