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A commuter tax is a tax (generally on either income or wages) levied upon persons who work, but do not live, in a particular jurisdiction. The argument for a commuter tax is that it pays for public services, such as police, fire, and sanitation, received by and beneficial to people who work within the jurisdiction levying the commuter tax.
Usually if self-employment or commission income is used to qualify for the mortgage, a two-year history of receiving that income is required. Although a bonus (sometime it is indicated as "incentive pay" by many corporations) is part of the paystub income, a two-year employer verification is also required.
Self-employment in cottage industries is often unreported at first. A home cook, for example, may sell a few pies to friends and co-workers without filing necessary sales taxes or self-employment taxes. Although that is usually illegal, it may lead to a legitimate and beneficial business and is often how small businesses are started.
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When searching for the best mortgage lenders for self-employed people, you may want to seek a loan officer who has experience underwriting a self-employment mortgage.
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