Qualifying Borrowers Using Personal Tax Returns Part 1: Schedules B & C

On-Demand Webinar:
StreamedJan 24, 2023Duration90 minutes
  • Unlimited & shareable access starting two business days after live stream
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  • Take-away toolkit
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Is taxable income different than cash flow?

Most often, the answer is a big “YES!”  Using tax returns to determine borrowers’ cash flow to service their debt is as challenging as ever. Join us to learn the latest techniques to help you sort out all that tax data and find exactly the information you need.
  • Turn a tax return into a borrower’s cash flow report
  • Understand the concept of using recurring incomes as cash flow – and ignoring the rest
  • Determine cash flows from interest-earning investments and dividend-producing investments, etc. from Schedule B: Interest and Dividends
  • Correct the unreliable pass-through interest and dividend incomes earned from partnerships and S corporations with Schedule B
    • Note: partnership and S corp supplemental income will be covered in Part 2
  • Identify hidden incomes and a hidden expense in a sole proprietorship via Schedule C


Tax returns don’t show cash flow; they show taxable income.  What you need to know is cash flow because that is how your loan is paid back.  With the process outlined in this session and the free Lenders Tax Analyzer© software each registrant receives, you will gain an easy, reliable method to convert a borrower’s personal tax return (Form 1040) into a borrower’s cash flow statement.

This is Part 1 of a two-part series.  In Part 1, you will learn to cash flow the front page of Form 1040, Schedule B (interest and dividend incomes) and Schedule C (sole proprietorship incomes). When you finish this session, you will be able do a little ‘magic’ and convert taxable incomes into cash flows that you can plug into your credit scoring model, your debt-to-income ratio, or your disposable income calculation.  (Note: This session is designed for consumer and commercial lenders. This method does not follow Fannie, Freddie, or QM rules used in mortgage lending.)


This informative session is designed for lending personnel, including chief lending officers, service representatives, new accounts personnel, loan officers, loan underwriters, loan sales officers, credit analysts, loan processors, branch managers, CEOs, and other key lending staff.


  • Free copy of Lenders Tax Analyzer© software
  • Employee training log
  • Interactive quiz
  • PDF of slides and speaker’s contact info for follow-up questions
  • Attendance certificate provided to self-report CE credits

NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your institution is prohibited. Print materials may be copied for eligible participants only.


"My team and I learned valuable information and were happy to have affirmation we had been doing most of this process correctly. We can't wait for Part 2!!"
- Jan, Explorers Credit Union

"I enjoyed the entire webinar. All the information was very helpful to me. Thank you for all the knowledge that I learned from this webinar."
- Sermetrius, Hope Federal Credit Union

"Easy to understand. Great presentation and helpful take away items to refer back to"
- Roshika, Provident Credit Union

Presented By

Tim Harrington, CPATimothy P. Harrington
TEAM Resources