Dear Liz: When applying for credit or at other times when one must state gross income, how should virtual income be computed and treated? My wife and I have annual tax-free income of about $96,000, not subject to offset of any kind, plus our $8,000 annual property taxes are waived in their entirety, as are our vehicle license fees and many other smaller fees. We have free health insurance through the military and the Department of Veterans Affairs that far exceeds the best plan out there. To state our household income as the money that goes into our bank accounts annually is a serious understatement of our financial position. We do not want to lie on a credit application, but we feel we are not being totally honest no matter how we answer questions asking for gross income.

Answer: Creditors are far more worried about people inflating their incomes than they are about people who understate their financial situations. In short: Don’t worry about it.