Another Affadavit of Support (I-134) Question

[Mysteerie 0]

First some background before the question:

I’ve been self employed for the past couple of years and my 2006 shows a 10k gross income (which is below the poverty income level) and a negative net. However, 2007 I made 28k gross income with a positive net (not sure how much positive net at this time as I’m getting all financial information down to file my taxes).

Well my first question is do they look at gross or net on self employed situations? If gross, would I be okay with making 28k for last year and then 10k for the year before that? If net, so am I screwed?

2008 is actually looking great for my business as I am projected to make 4k gross and around 2k net starting around March. However, *knock on wood* that is projected and not actual cash in my hand yet. So my question for this are there any suggestions on this (i.e. wait till March and then send my bank account deposits for that month? Or write a statement explaining what I said above in a bit more detail?) This is just a throw me out there question in case anyone has suggestions on how to better prove my ability to support my fiancé.

Third thing is the above I just recently graduated from a nursing program and currently studying hard for my boards which will be taken very soon (and again *knock on wood* passed) to start my career. Any recommendations if I was able to use this in any way (i.e. again in a statement?)

Fourth is I actually can obtain a co-sponsor who did make around $150k gross last year. I’ve been hearing mix things about co-sponsors in the Manila embassy. So just wanted to reconfirm, is there any problem if I would use a co-sponsor? Also is there any additional forms for filing a co-sponsor?

Thank you for your time.

[Gary and Alla 3,694]

First some background before the question:

I’ve been self employed for the past couple of years and my 2006 shows a 10k gross income (which is below the poverty income level) and a negative net. However, 2007 I made 28k gross income with a positive net (not sure how much positive net at this time as I’m getting all financial information down to file my taxes).

Well my first question is do they look at gross or net on self employed situations? If gross, would I be okay with making 28k for last year and then 10k for the year before that? If net, so am I screwed?

2008 is actually looking great for my business as I am projected to make 4k gross and around 2k net starting around March. However, *knock on wood* that is projected and not actual cash in my hand yet. So my question for this are there any suggestions on this (i.e. wait till March and then send my bank account deposits for that month? Or write a statement explaining what I said above in a bit more detail?) This is just a throw me out there question in case anyone has suggestions on how to better prove my ability to support my fiancé.

Third thing is the above I just recently graduated from a nursing program and currently studying hard for my boards which will be taken very soon (and again *knock on wood* passed) to start my career. Any recommendations if I was able to use this in any way (i.e. again in a statement?)

Fourth is I actually can obtain a co-sponsor who did make around $150k gross last year. I’ve been hearing mix things about co-sponsors in the Manila embassy. So just wanted to reconfirm, is there any problem if I would use a co-sponsor? Also is there any additional forms for filing a co-sponsor?

Thank you for your time.

This is exactly the same situation I am in! My return for 2007, taxable income, will not meet the "qualifications" but I am no longer self employed as of late 2007. My 2008 income (taxable) will be much "higher" and I can document that now that I am an "employee". Although you have asked the question more clearly than I did.

Do they use "adjusted gross income"? If so, I am fine. If it is after all personal deductions, credits, etc (taxable income) for 2007, I have a problem. Or would they consider this along with the information I can provide for current year (letter from employer, payroll records, check stubs and w-2 for last 3 months of 2007) ?

Being that I was self employed most of 2007, I can choose not to claim certain deductions and credits I am legitimately allowed (and pay more tax, of course) but this would "raise" my income above the required level for my 2007 tax return. At this point, I am "flexible" but need some advice. The required income (125% of poverty level) is not daunting. Especially if they use "gross" or "adjusted gross" income. If they use "net" (taxable) then I need to know not to take a LOT of deductions I am allowed and pay more tax.

And it is only necessary to provide ONE year tax return to the embassy along with documentation of current income, correct? Because I am way past the point of being "flexible" for my 2006 or 2005 returns.

I hope someone will have advice. Thanks.

[pushbrk 13,116]

Gross income is used but for a sole proprietor retail business that wouldn't be gross revenue. I'm not sure what line on the 1040 to use as your declared anual income as a proprietor. As an employee it is the gross gross, even if you have employee business expenses to deduct.

[Gary and Alla 3,694]

Gross income is used but for a sole proprietor retail business that wouldn't be gross revenue. I'm not sure what line on the 1040 to use as your declared anual income as a proprietor. As an employee it is the gross gross, even if you have employee business expenses to deduct.

Thank you. I think then I will be fine. Self employed report their "gross" revenue after expenses and cost OF THE BUSINESS, but then, further down the page we are allowed "adjustments" such as a credit for self-employment tax (social security) and for 1/2 the cost of medical insurance which can really whack the "adjusted gross" at the bottom of the page. Add in itemized deductions, energy tax credit for new windows and doors, etc., etc., and you would think I couldn't support myself!

But if they use the gross income (which I suspected since the form I-134 seems to indicate that for employees) there is no problem! Thanks for the advice, I will rest easier now!

Gary

[pushbrk 13,116]

Gross income is used but for a sole proprietor retail business that wouldn't be gross revenue. I'm not sure what line on the 1040 to use as your declared anual income as a proprietor. As an employee it is the gross gross, even if you have employee business expenses to deduct.

Thank you. I think then I will be fine. Self employed report their "gross" revenue after expenses and cost OF THE BUSINESS, but then, further down the page we are allowed "adjustments" such as a credit for self-employment tax (social security) and for 1/2 the cost of medical insurance which can really whack the "adjusted gross" at the bottom of the page. Add in itemized deductions, energy tax credit for new windows and doors, etc., etc., and you would think I couldn't support myself!

But if they use the gross income (which I suspected since the form I-134 seems to indicate that for employees) there is no problem! Thanks for the advice, I will rest easier now!

Gary

Yeah, by using Turbo Tax, I never get that fimiliar with the forms themselves. I'm a 1099 guy who pays his own business expenses so my full 1099 income goes on the I-134. I just don't know what line has the gross profit of a proprietership but that's the number.

[Gary and Alla 3,694]

Thank you Pushbrk:

I notice you have been very respnsive to my questions and I appreciate the help. I quickly checked my taxes for 2007 and find my "gross" is somewaht over the minimum for a family of four. My "adjusted gross" is not quite enough. My fiance has two sons, so we will "be" a family of four even though one of her sons will remain behind to complete his education at a university. I wonder if they will still consider us a family of four? Or 3? We will, of course be supporting the older son at school. At any rate, my income now as an "employee" is far above what is needed and I will submit evidence of income for this year also (check stubs, employers statement, etc.) and I am still in the same business I have been for 30 years, so I am not worried now.

Thanks for your help!

Gary