Monthly gross versus net mechanics, voluntary versus involuntary deductions, the spouse-income analysis, and the distinction between Schedule I income and means-test CMI.
Schedule I is the schedule on which an individual debtor reports current monthly income as of the petition date. The schedule asks for employment information for the debtor and the debtor's spouse (whether or not the spouse is also filing), then walks through line items for gross monthly income, payroll deductions, take-home pay, and additional income from non-employment sources. The bottom-line figure is "combined monthly income" - the monthly cash the household actually has available for expenses tracked on Schedule J.
Schedule I is not the means-test calculation. The means-test form (Form 122A-1 in Chapter 7 or 122C-1 in Chapter 13) computes "current monthly income" as defined by 11 U.S.C. Section 101(10A) using a backward-looking six-month average. Schedule I, by contrast, reports the debtor's income at the moment of filing: a forward-looking snapshot. The two figures often differ. A debtor who lost employment in the petition month will show high CMI on the means-test form and lower income on Schedule I. A debtor whose income spiked in the month before filing will show the inverse. The forms are not duplicative; they answer different questions.
The schedule begins with employer name, occupation, employer address, and length of employment. These appear redundant but feed several downstream uses: the trustee's pre-341 review of the debtor's likely on-going income, the calculation of any wage-garnishment exemption claim on Schedule C, and (in Chapter 13) the determination of which employer should receive the wage-order under Section 1325(c). A debtor who recently changed employers or who has multiple part-time positions must list each employer that pays the debtor as of the petition date.
The first line item is gross monthly income from employment: wages, salary, commissions, bonuses, and tip income converted to a monthly average. The conversion of weekly, biweekly, or semi-monthly pay to a monthly figure uses 4.333 weeks per month (52/12), 2.167 pay periods per month (26/12), or 2 pay periods per month respectively. Hourly workers with variable hours typically use a recent reasonable average. The figure should match the gross pay shown on the most recent pay stub before annualized adjustments.
Self-employed debtors do not use Schedule I's employment block; they report business income net of business expenses on the schedule's non-employment income line. The supporting calculation of business income belongs on Schedule I or on an attached statement and should reconcile to the income flowing to Schedule J.
The schedule disaggregates payroll deductions into several categories. The categorization matters because some are recognized as proper subtractions from disposable income and some are not.
Federal income tax, state income tax, local income tax, Social Security tax, and Medicare tax are all proper deductions from gross income. Over-withholding (a refund-producing pattern) is not an offset against disposable income; the over-withheld amount is properly characterized as savings the debtor has elected to make through the IRS and (in Chapter 13) may be subject to capture as projected disposable income under the Hamilton v. Lanning framework. Trustees routinely compare withholding rates to prior-year tax returns and ask why a debtor is over-withholding if it appears.
Mandatory contributions to public-employee retirement systems and to certain ERISA pension plans are recognized as proper subtractions from disposable income. Voluntary 401(k) and similar contributions are a different category - see below. The form does not require the debtor to distinguish mandatory from voluntary on its face; counsel must attend to the distinction in the supporting analysis.
Voluntary 401(k), 403(b), 457, and Roth IRA contributions are a debated category. The Hamilton v. Lanning majority recognized that projected disposable income is a forward-looking measure that may include "known or virtually certain" changes; this includes both income changes and changes in voluntary contribution patterns. In many districts, voluntary retirement contributions are disallowed in Chapter 13 plan calculations because they prefer the debtor's future-self over current creditors. Section 541(b)(7) excludes from property of the estate the debtor's contributions to qualified retirement plans, and Section 1322(f) protects loan repayments to a retirement account in Chapter 13 - both provisions are read in tandem with the disposable-income analysis. The treatment varies by circuit and by district.
Health insurance premiums withheld through payroll are proper deductions. Disability insurance premiums withheld through payroll are proper deductions. Group-life and other voluntary insurance withholdings are evaluated for reasonableness. Union dues are proper deductions when they are a condition of employment.
Wage garnishments for non-bankruptcy obligations (child support, student loans, prior judgments) are properly deducted from gross to reach Schedule I net. A debtor under garnishment should also examine whether the underlying obligation should be listed on Schedule E/F (or D, if secured) and whether the post-filing automatic stay terminates the garnishment under Section 362(a). Domestic-support obligation garnishments are excepted from the automatic stay under Section 362(b)(2)(C).
Beyond employment, Schedule I asks for monthly income from: business operation; real-property rental; interest and dividends; alimony, maintenance, and support; Social Security; unemployment compensation; pensions and retirement; family and household contributions; and "other." Each source must be itemized. The "other" line catches royalties, trust distributions, regular gifts from family, sublease income, and similar items.
Social Security income is reported on Schedule I even though it is excluded from the means-test CMI. This is the principal numerical reason a debtor's Schedule I figure may exceed CMI. The means-test exclusion does not translate to a Schedule I exclusion; Schedule I asks what the household actually receives, not what BAPCPA classifies as means-test income.
If both spouses are filing jointly, Schedule I shows each spouse's employment and income in parallel columns and produces a combined monthly income at the bottom. Both spouses sign the schedules.
If only one spouse is filing, the non-filing spouse's income must still be reported on Schedule I (it is a required disclosure for completeness of the household economic picture) but it does not become the filing spouse's income. The form distinguishes the two: line 11 captures the non-filing spouse's contribution to household expenses, which then appears as a downward adjustment in the household disposable-income calculation. In community-property states, the non-filing spouse's income is community income and may be more deeply integrated into the property-of-the-estate analysis under Section 541(a)(2).
The "marital adjustment" - a downward adjustment on the means-test form for income of the non-filing spouse not used to pay household expenses - is conceptually similar but mechanically separate from Schedule I's treatment. The two forms must be internally consistent: if the marital adjustment reduces means-test CMI by $X, the non-filing spouse's contribution on Schedule I should reflect a similar pattern, and counsel should be prepared to explain any apparent inconsistency to the trustee.
Schedule I and the means-test form measure different things on purpose. The means test asks what the debtor's six-month historical income was. Schedule I asks what the household is bringing in now. Reconciling the two is the work; ignoring the divergence is the trap.
This page provides general information about Official Form 106I under the Federal Rules of Bankruptcy Procedure. It does not constitute legal advice. The treatment of voluntary retirement contributions and the marital adjustment vary by circuit and district.
Last modified: 2026-05-22