income question K1

[justin728jn 0]

hi all, to my understanding, the required income for 2005 is %125 of the poverty threshold which is about 16k, but my tax return is only 15k. is it going to be a problem? do i need a co-sponsor? thanks..

[Matt_Stevens 5]

Yes, you do.

[Aymerlu 3]

You will need a co-sponser

[justin728jn 0]

You will need a co-sponser

i noticed many co-sponsor k1 cases have lots of problems. so should i amend my 2005 tax return from 15k to 25k instead having a co-sponsor?

[dalegg 143]

You will need a co-sponser

i noticed many co-sponsor k1 cases have lots of problems. so should i amend my 2005 tax return from 15k to 25k instead having a co-sponsor?

OKay, I have to ask. How can you do that?

[justin728jn 0]

You will need a co-sponser

i noticed many co-sponsor k1 cases have lots of problems. so should i amend my 2005 tax return from 15k to 25k instead having a co-sponsor?

OKay, I have to ask. How can you do that?

my accountant told me that i could amend my 2005 tax return by fill out the 1040x form. since i am self-employed, i can arbitrary declare my own income. but i am not sure if i amend my tax return from 15k to 25k would raise a red flag

[meauxna 15]

You will need a co-sponser

i noticed many co-sponsor k1 cases have lots of problems. so should i amend my 2005 tax return from 15k to 25k instead having a co-sponsor?

OKay, I have to ask. How can you do that?

my accountant told me that i could amend my 2005 tax return by fill out the 1040x form. since i am self-employed, i can arbitrary declare my own income. but i am not sure if i amend my tax return from 15k to 25k would raise a red flag

It will certainly raise your SE income tax...

[russ 1]

You will need a co-sponser

i noticed many co-sponsor k1 cases have lots of problems. so should i amend my 2005 tax return from 15k to 25k instead having a co-sponsor?

OKay, I have to ask. How can you do that?

File a 1040x with a new schedule C. Declare $1,000 in fewer expenses on the schedule C, this will raise your business profit (and income) by $1,000. At $16,000 in income, I doubt it will increase your tax bill by much. While technically you are now filing a falsified return, the IRS is unlikely to complain about you paying them MORE money. It may be possible that some expenses might just move to another tax year.

Tax returns of self employed people in the US are a bad indicator of income, since it is in your interest to make as little as possible. Deductions on your scedule C don't show up as AGI (gross income), thus lowering your tax bill and potentially avoiding AMT. If you are a C-Corp or S-Corp, this will be different.

Your accountant may know a better way to do this, maybe a distribution or dividend from your business (which would make more sense for tax year 05, these usually happend after the fact), and will probably be cheaper than the SE tax. Whatever he says, I would take his advice.

A W-2 employee appears to make more, since deductions show up on the 1040.

Since you are self employed, they will probably care more about your business' books than your taxes anyway.

[butuan 0]

[ sounds fishy

[dalegg 143]

You will need a co-sponser

i noticed many co-sponsor k1 cases have lots of problems. so should i amend my 2005 tax return from 15k to 25k instead having a co-sponsor?

OKay, I have to ask. How can you do that?

my accountant told me that i could amend my 2005 tax return by fill out the 1040x form. since i am self-employed, i can arbitrary declare my own income. but i am not sure if i amend my tax return from 15k to 25k would raise a red flag

They will probably ask for a 1722 also in this case. So if you do this amended tax return thing get the 1722 after that. I couldn't begin to tell you what your odds of success will be though.

[justin728jn 0]

gosh, what a mess i am in

what's 1722 and why should i need that?

[dalegg 143]

gosh, what a mess i am in

what's 1722 and why should i need that?

Read this previous thread:

Form 1722 thread.