Any positive transaction (deposit) you mark as Personal falls into the Personal Income bucket. Personal income should be any positive amount deposited to your accounts that doesn't come from your self-employed work.
This means that payroll paychecks from employers—as long as they have taxes taken out—are considered personal income. Here's an example:
- Let's say you have a "regular" W2-type day job, but you also work nights and weekends as a personal chef.
- Your day job gives you a paycheck every 2 weeks, and it already has taxes and other deductions taken from it.
- Your chef job pays you per job, in full, without any deductions.
To us, your day job money is considered Personal Income, and your chef job money is Business Income. Personal income isn't included in the calculations we do for estimated taxes, but business income is.
Tip! If you share bank accounts with a significant other, their paychecks and deposits should be marked "Personal" in the app as well.