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.
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.
- Identify all business expenses incurred so far this fiscal year. Common business expenses include the cost of goods sold, salaries, benefits, insurance, rent, utilities, office supplies and taxes.
- Subtract business expenses incurred from net sales to determine YTD income. For example, if the company has net income of $49,000 and incurred $30,000 in expenses so far this year, YTD income is $19,000.
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.
- Procure financial records that report income received during the year. These financial records could be paystubs, bank statements or account statements.
- Determine how much income you've received from each source. For wages from a job, your YTD earnings is the amount labelled as year-to-date gross income on your most recent paystub. Bank statements and account statements typically have a year-to-date report as well.
- If you don't have a year-to-date report for any sources of income, calculate it manually. Include all payments received since January 1. Exclude any income that you've earned but have yet to be paid.
- Sum YTD income from all sources to determine YTD personal income. For example, if you've received $30,000 from your job and $5,000 in interest income so far this year, YTD personal income is $35,000.
- Internal Revenue Service. "Unearned Income." Accessed Feb. 8, 2020
- Internal Revenue Service. "Publication 525 (2018), Taxable and Nontaxable Income." Accessed Jan. 22, 2020.
- Internal Revenue Service. "Topic No. 409 Capital Gains and Losses." Accessed Jan. 22, 2020.
- U.S. Securities and Exchange Commission. "Treasury Securities." Accessed Feb. 9, 2020.
- U.S. Securities and Exchange Commission. "Municipal Bonds." Accessed Jan. 22, 2020.
- Internal Revenue Service. "Topic No. 404 Dividends." Accessed Feb. 9, 2020.
- Social Security Administration. "Benefits Planner: Income Taxes and Your Social Security Benefit." Accessed Jan. 22, 2020.
- Target. "Target 2016 Annual Report," Page 4. Accessed Feb. 9, 2020.
- Internal Revenue Service. "Estimated Taxes." Accessed Feb. 9, 2019.
Based in San Diego, Calif., Madison Garcia is a writer specializing in business topics. Garcia received her Master of Science in accountancy from San Diego State University.