Beermann Posted October 8, 2005 Report Share Posted October 8, 2005 I'm getting ready to prepare my I-134s and am running into some confusion. My situation is this... My father and I are both self-employed and actually work together. However, I haven't really worked at all in 2005 as I've been in China and just focusing on this stuff, and don't meet the minimum poverty guidelines. So, I must have my father co-sponsor for me as he has worked this year. Here's where I'm very concerned with this. His 1099ed income far exceeds the guidelines in addition he has Social InSecurity, but when he files his taxes his "net" income is insufficient after applying all of his deductions on his Schedule C. Basically, his deductions nearly zero out his taxable income leaving only his Social InSecurity remaining as the bulk of his "net". Nowhere do I see if the income requirements are for "gross" or "net". Any experts on this? Thanks much! Link to comment
frank1538 Posted October 8, 2005 Report Share Posted October 8, 2005 Gross or adjusted gross income is used to determine whether the thresholds are exceeded: This is from http://uscis.gov/graphics/publicaffairs/fa...eets/affaqa.htm : 18. Which income line from the federal tax return is used for income determination? The line for gross (total) income on IRS Forms 1040 (line 22 in 1996) and 1040A (line 14 in 1996) is used to determine income. The line for adjusted gross income is used for persons filing IRS Form 1040 EZ (line 4 in 1996). Link to comment
Beermann Posted October 8, 2005 Author Report Share Posted October 8, 2005 Gross or adjusted gross income is used to determine whether the thresholds are exceeded: This is from http://uscis.gov/graphics/publicaffairs/fa...eets/affaqa.htm : 18. Which income line from the federal tax return is used for income determination? The line for gross (total) income on IRS Forms 1040 (line 22 in 1996) and 1040A (line 14 in 1996) is used to determine income. The line for adjusted gross income is used for persons filing IRS Form 1040 EZ (line 4 in 1996).159169[/snapback]Thank you Frank!!! For the life of me I couldn't find that! Now I can take a deep breathe and relax a little and not worry about the AOS... Link to comment
Linbar Posted October 8, 2005 Report Share Posted October 8, 2005 (edited) Hi Brent - I am not an expert but I thought the business Schedule C income was reported on the 1040 as "net". Perhaps somebody else can confirm. Sorry, but don't shoot the messenger. I'm on your side.Barry Edited October 8, 2005 by Linbar (see edit history) Link to comment
david_dawei Posted October 9, 2005 Report Share Posted October 9, 2005 Hi Brent - I am not an expert but I thought the business Schedule C income was reported on the 1040 as "net". Perhaps somebody else can confirm. Sorry, but don't shoot the messenger. I'm on your side.Barry159217[/snapback]good point... the form 1040 "gross" / total income line includes the Schedule C business [Net] income... Link to comment
Stone Posted October 9, 2005 Report Share Posted October 9, 2005 Hi Brent - I am not an expert but I thought the business Schedule C income was reported on the 1040 as "net". Perhaps somebody else can confirm. Sorry, but don't shoot the messenger. I'm on your side.Barry159217[/snapback]good point... the form 1040 "gross" / total income line includes the Schedule C business [Net] income...159285[/snapback]If he itemizes his deduction and reduces his taxable income to $0, that is fine. But if he takes most of the deductions (so-called "business expenses") on Schedule C, then it is going to reduce his adjusted gross income, which is not OK. You should not confuse business "revenues" with business "income". Business revenues can not be included in AGI, business income (or profit per se) can. Link to comment
Beermann Posted October 14, 2005 Author Report Share Posted October 14, 2005 (edited) Hi Brent - I am not an expert but I thought the business Schedule C income was reported on the 1040 as "net".?Perhaps somebody else can confirm. Sorry, but don't shoot the messenger. I'm on your side.Barry159217[/snapback]good point... the form 1040 "gross" / total income line includes the Schedule C business [Net] income...159285[/snapback]Ok, now this has me VERY concerned. Being an independent contractor/self-employed, my father obviously uses a Schedule C with 1099s. The income on his 1099s is plenty sufficient, but after his business expenses and other deductions on his Schedule C, his Net Profit is very low and this becomes his AGI. Basically, he "spends" a lot of money trying to grow his business. In fact, what is so strange is that the majority of his Schedule C deductions are mileage, which brings the Net Profit WAY down. How will this impact the I-134? It would seem that being self-employed and being a sponsor is almost impossible for most people if it's based off of the AGI because most people I know don't pay much in taxes when they are self-employed or own their own business. Thanks! -Brent Edited October 14, 2005 by Beermann (see edit history) Link to comment
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