When considering Form 1040 "Wages, salaries, and tips" as a source of cash in the global cash flow formula, one must recognize that the amount reported:

The amount reported for "Wages, salaries, and tips" on Form 1040 is indeed net of any pre-tax payroll allocations. This means that it reflects earnings after certain deductions, such as contributions to retirement accounts (like 401(k) plans) or flexible spending accounts (FSAs), which are deducted from the gross income before reaching the net income amount reported.

When evaluating a borrower's financial state in a global cash flow assessment, it's essential to consider net earnings because using gross income could lead to an inaccurate representation of the actual cash available. This awareness helps in understanding an individual's capacity to repay debts.

Other options do not accurately reflect how wage data is presented on Form 1040. For instance, amounts not corroborated by a W-2 could introduce uncertainties into income assessment but are not standard practice in formal income reporting. Medicare deductions also do not affect the gross reporting of wages as they relate to tax withholding, and wages from closely held corporations must be considered based on their reporting standards.