4000incomeNormal balance: Creditpersonal4000 — Salary
Salary is the personal equivalent of Sales on the business chart — the primary top-line income most households track, whether that is a regular paycheck, a bonus, or other W-2 earnings deposited on a normal schedule.
As an income account, it carries a normal credit balance: a paycheck deposit is a credit that grows it. Whether to track gross pay or net pay deposited is worth deciding deliberately and sticking with — gross pay tells a fuller story of total earnings, but this simple personal chart has no dedicated account for taxes and benefits withheld along the way, so most people find it simpler to track only the net amount actually deposited.
Freelance or side income is a judgment call for where it lands — some people fold it into Other Income (4900) since it is not the primary job, others give it its own account if it happens regularly enough to matter on its own. Either works; consistency is what makes the trend meaningful over time.
What belongs here
- net or gross paycheck deposits, tracked consistently one way
- bonus payments
- regular W-2 income
- a raise reflected in a larger recurring paycheck
What does not belong here
- a tax refund — arguably Other Income (4900), since it is a return of your own money rather than new earnings; some people track it here anyway, just be consistent
- freelance or side income, if you prefer to track it separately — Other Income (4900), or its own account if it happens regularly
- a loan or gift received — never income, regardless of amount
Where it shows up
Shows at the top of the personal income statement. This simple chart has no dedicated account for taxes and benefits withheld from a paycheck, so most people track only net pay actually deposited rather than modeling gross pay and withholding separately.
Common questions
- Should I track my gross pay or my net pay here?
- Either works, but pick one and stay consistent. Most people track net pay actually deposited, since this simple chart has no dedicated account to model taxes and benefits withheld separately.
- Where does freelance income go?
- Commonly Other Income (4900), unless it happens regularly enough that it deserves its own dedicated account for a clearer trend.