Common use of Current Year Reconciliation Clause in Contracts

Current Year Reconciliation. On June 1st of each year, we use your Reconciliation Information regarding your expected Earned Income for the coming year to re- estimate the amount of your Monthly Payment. If you have not provided us with your expected Earned Income as part of your Reconciliation Information, we will assume your Earned Income has increased by 10% and adjust your Monthly Payments accordingly, beginning with the payment due June 1st. Since this is an estimate of your current Earned Income, it may result in Monthly Payments that are either higher or lower than what you actually owe. Any overpayments or underpayments will be reconciled the following calendar year.

Current Year Reconciliation. On June 1st of each year, we use your Reconciliation Information regarding your expected Earned Income for the coming year to re- estimate the amount of your Monthly Payment. If you have not provided us with your expected Earned Income as part of your Reconciliation Information, we will assume your Earned Income has increased by 10% and adjust your Monthly Payments accordingly, beginning with the payment due June 1st1. Since this is an estimate of your current Earned Income, it may result in Monthly Payments that are either higher or lower than what you actually owe. Any overpayments or underpayments will be reconciled the following calendar year.