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Income Verification Summary

income-verification-summary

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.

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SKILL.md

Full skill instructions

Income Verification Summary

Convert raw financial documents into a court-ready income verification report with traceable figures, trend analysis, and damage-relevant conclusions.

Prerequisites

  1. Tax returns — at least 2-4 years; note filing status changes across years
  2. W-2s / 1099s — all employers and income sources for each year
  3. Paystubs — full period preferred; flag if incomplete
  4. Schedule C / business returns — for self-employed subjects
  5. 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 YearFiling StatusAGIW-2 WagesSelf-Emp. NetOther IncomeNotes
YYYY

Follow with narrative explaining inflection points and year-over-year growth rates.

3) Employment and Income Source Analysis

W-2 employees:

ElementDetail
Employer / title / datesPer W-2 and paystubs
Compensation breakdownBase wage, overtime, bonuses, commissions, shift differentials
Hourly calculationRate x hours from paystubs
Lost non-wage benefitsHealth insurance, retirement contributions

Self-employed:

ElementDetail
Business typeSchedule C gross receipts vs. net profit by year
Margin trendNet profit margin year-over-year
Subcontractor costsFlag spikes post-injury (suggests inability to self-perform)
Cash receiptsIf 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)

PeriodBase WagesOT Hours/​WkOT PayBonusesTotal

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

IssueSource ASource BDeltaAction Needed
W-2 vs. paystub mismatch$X$Y$ZObtain full-year paystubs
Unreported cash incomeSchedule CNo 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

  • Paystubs for complete relevant period
  • All Schedule K-1s if pass-through entity
  • Benefits statements (health, retirement)
  • Bank records to corroborate cash income
  • Comparable employee compensation data (discrimination claims)

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.

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