Your lender will want to compare your income stream to your expenses to see if you really can afford to pay your mortgage. Remember that all short sale forms you send to the bank are filled out under penalty of perjury (you can get in trouble in court if you don’t tell the truth on these forms). Here are the types of income you are typically required to disclose:

Wages (including overtime, holiday pay, etc.)
Tips, commissions or bonuses
Self-employed income (including from regular small jobs you do in addition to full time employment)
Social Security payments (including disability payments)
Unemployment, food stamps or other benefits from government programs
Rent paid to you by tenants on any property you own
“Passive” income which may be payments, dividends or royalties, from retirement plans, pensions, annuities or investments

You might not be required to disclose child support or similar types of income. Read the short sale forms from your lender carefully and be prepared to provide documentation for all the income you declare.