Affidavits of Support:Income Sources considered??

[victorio 0]

Hello dear users.

I’m trying to get a fiancé visa, but I got it a little confuses about something with the affidavit support.

And this is my question.

1) Gross income from employment (before deductions).

2) Net profit from a business (after deductions). (Shown on 1040 Sched. C.)

3) Equity or cashable assets in real estate, money market accounts, boats, retirement accounts, etc. Note: Any equity or assets MUST be cashable within 1 year. Up to 20% of such assets may be used to supplement "income."

4) Cash, savings accounts, and depreciating assets (such as automobiles or home furnishings) are generally not considered. Savings can be cashed out at any time, and cars depreciate in value.

5) Beneficiary spouse or household member's income (for K3, or Concurrent cases only). See details.....

On the Number 2 say something about for the self employer (my Fiancée..the one who goes to sponsor me has a on self employer business) and my confuse is, if we have to show the Gross Income or the income after the deduction?

Please if somebody can help me I will appreciate.

Regards

[Gary and Alla 3,694]

Hello dear users.

I’m trying to get a fiancé visa, but I got it a little confuses about something with the affidavit support.

And this is my question.

1) Gross income from employment (before deductions).

2) Net profit from a business (after deductions). (Shown on 1040 Sched. C.)

3) Equity or cashable assets in real estate, money market accounts, boats, retirement accounts, etc. Note: Any equity or assets MUST be cashable within 1 year. Up to 20% of such assets may be used to supplement "income."

4) Cash, savings accounts, and depreciating assets (such as automobiles or home furnishings) are generally not considered. Savings can be cashed out at any time, and cars depreciate in value.

5) Beneficiary spouse or household member's income (for K3, or Concurrent cases only). See details.....

On the Number 2 say something about for the self employer (my Fiancée..the one who goes to sponsor me has a on self employer business) and my confuse is, if we have to show the Gross Income or the income after the deduction?

Please if somebody can help me I will appreciate.

Regards

I will try to make "questions" of your statements.

1. YES, gross income is what is considered. Line 22 from the 1040 to be precise

2. You must attach all w-2s, 1099s or schedules showing source of income...in your case...Schedule C. They consider ONLY the income that appears on your personal tax return and adds up to Line 22. They WILL NOT consider gross revenue of the business. If you deducted lots of business expenses to reduce "profit" (and taxes) here is where it bites you in the @ss. That said, the past year income is not as critical as CURRENT income.

3. No matter how hard I tried I could not make a question of this. What is your question?

4. Ditto #3

5. Ditto #4

As stated above your fiance will show the income which appears on line 22 of his 2008 tax return. For current income he should take his "year to date" gross income and multiply x2 (if he fills it out before July) and state this as his current income. Slef employed people usually benefit from a bank letter showing the past year's deposits to his PERSONAL account. Other than Schedule C, they do not need to see (and do not care) about the business income.

[victorio 0]

"As stated above your fiance will show the income which appears on line 22 of his 2008 tax return. For current income he should take his "year to date" gross income and multiply x2 (if he fills it out before July) and state this as his current income. Slef employed people usually benefit from a bank letter showing the past year's deposits to his PERSONAL account. Other than Schedule C, they do not need to see (and do not care) about the business income."

Hi Gary...thanks for your info...

so..if i understand this well....what you are saying is than in the case of my fiancée...as a self employed...the officer form the embasy will only look to the "year income after after deductions"..not to the Gross income like they do with case 1? (Gross income from employment (before deductions).

[Gary and Alla 3,694]

"As stated above your fiance will show the income which appears on line 22 of his 2008 tax return. For current income he should take his "year to date" gross income and multiply x2 (if he fills it out before July) and state this as his current income. Slef employed people usually benefit from a bank letter showing the past year's deposits to his PERSONAL account. Other than Schedule C, they do not need to see (and do not care) about the business income."

Hi Gary...thanks for your info...

so..if i understand this well....what you are saying is than in the case of my fiancée...as a self employed...the officer form the embasy will only look to the "year income after after deductions"..not to the Gross income like they do with case 1? (Gross income from employment (before deductions).

No, you don't understand something well. Or I don't. Lets try to cover this. You need to understand the difference between costs, expenses and deductions. Your finace's business has costs and expenses. Your fiance has deductions. Your fiance has his own business. That business makes $XXX dollars per year. This is the TOTAL amount the business makes. From that, your fiance subtracts his costs and expenses that he spends to make that amount of money. What is left is the profit. He pays the profit to himself. This is his GROSS income and it ends up being reported on line 22 of the PERSONAL tax return. This is his GROSS, total income BEFORE deductions. THIS is what "counts"

The USCIS and the Consulate do not care about the business income, they only need to see where you fiance's income is from. This is why you attach schedule C. They do not consider in any way, the business income as HIS income...it is not. Forget all about the business income. Ask him what line 22 on his 1040 says, that is the easy way.

Here is an example of a guy in business making widgets...these are really good widgets, hence the high price

2008 Total income from sale of widgets by John Smith Widget Company......................$1,000,000

Cost of widget making material (plastic, newts eyelashes, and partially hydrogenated fats) $900,000

Expenses (electricity, new widget machine parts, vehicles for widget salesman) $ 50,000

NET PROFIT paid to John Smith, Founder, chief widget maker and bottle washer $50,000.00

JOHN's income, from which he will claim to support you is $50,000 for 2008. This is on line 22 of John's 2008 tax return. From this John DEDUCTS items to reduce his taxes further, but HIS gross income BEFORE deductions is $50,000. That was for 2008

NOW, for 2009. It is the end of June. Six months of 2009 are gone and John has been paid (and deposited in his bank) $32,000 this year, so far. Despite the economy, everyone needs a widget and John is doing quite well this year. It is perfectly acceptable for John to state his CURRENT income is $64,000 per year. 1/2 year pay x two. Technically, divide the year to date by the number of months and multiply by 12. Understand?

Edited June 28, 2009 by Gary and Alla

[victorio 0]

yeah...thanks again...now i think i understand it...but i have another doubt...when you says..."They do not consider in any way, the business income as HIS income...it is not. Forget all about the business income. Ask him what line 22 on his 1040 says, that is the easy way..." you says with this that they only consider the $$$$ on line 22/1040 of the individual tax return page?...this is the count of money that has to be reachto the count of $18.212 to be my sponsor?

[thepizzadude 26]

yeah...thanks again...now i think i understand it...but i have another doubt...when you says..."They do not consider in any way, the business income as HIS income...it is not. Forget all about the business income. Ask him what line 22 on his 1040 says, that is the easy way..." you says with this that they only consider the $$$$ on line 22/1040 of the individual tax return page?...this is the count of money that has to be reachto the count of $18.212 to be my sponsor?

Yes that is exactly what he is saying if your fiance has only himself and you to support, no kids or other dependents. Family of 2 is $18212.

[Gary and Alla 3,694]

yeah...thanks again...now i think i understand it...but i have another doubt...when you says..."They do not consider in any way, the business income as HIS income...it is not. Forget all about the business income. Ask him what line 22 on his 1040 says, that is the easy way..." you says with this that they only consider the $$$$ on line 22/1040 of the individual tax return page?...this is the count of money that has to be reachto the count of $18.212 to be my sponsor?

YES.

Line 22 of the individual income tax return is his "total income" That is what they consider, nothing else.

[Gary and Alla 3,694]

yeah...thanks again...now i think i understand it...but i have another doubt...when you says..."They do not consider in any way, the business income as HIS income...it is not. Forget all about the business income. Ask him what line 22 on his 1040 says, that is the easy way..." you says with this that they only consider the $$$$ on line 22/1040 of the individual tax return page?...this is the count of money that has to be reachto the count of $18.212 to be my sponsor?

YES.

Line 22 of the individual income tax return is his "total income" That is what they consider, nothing else.

Just to be clear, business income is not his income, it is the income of the business and is not reported as income on the form 1040, individual tax return. The income of the business does not support you, HIS income supports you.

[victorio 0]

So..if they only look to what its on the line 22 of the 1040/individual tax return and my fiancée don´t reach with his income the level of the $18.212...how does this co-sponser thing work?...can we add somebody as a co-sponsor to reach this $18.212?..or it has to be somebody else who only does as a sponsor...example...one of the members of my family in law?...

[Gary and Alla 3,694]

So..if they only look to what its on the line 22 of the 1040/individual tax return and my fiancée don´t reach with his income the level of the $18.212...how does this co-sponser thing work?...can we add somebody as a co-sponsor to reach this $18.212?..or it has to be somebody else who only does as a sponsor...example...one of the members of my family in law?...

You can have a co-sponsor, but you do not "add" a co-sponsor. The co-sponsors income does not "add" to the sponsor's income. One of them, the sponsor or the co-sponsor, must make the minimum amount on their own. Your fiance will always be the primary sponsor, whether he makes any money or not. He must submit an I -134 and supporting documents. A co-sponsor would do the same, submit an I-134 and supporting documents.

That said...your fiancee does not need to qualify to sponsor you THIS year with income he made LAST year. LAST year's tax return does not need to exceed THIS years minimum income. People often seem to get this idea. Unless consulate specific, this is not the case typically, or I should say, you should not assume it is.

More important is his CURRENT income, which I already explained the method of calculation and verification. Last year's tax return is presented as a "work history" showing that the petitioner has a history of working and earning income. Self employed people, even those making a comfrotable living, often find themselves in a situation of not lloking good "on paper". Give that it is nearly July, one would hope his projections for this year's income would look more attractive. I think if your fiance reviews this information, he will understand what he needs to do. Since tax returns are done in arrears and since projections are done in advance, one can decide which of the legitimate business expenses and costs one will claim for this year. Just because he CAN claim all these costs and expenses, reducing his tax (and income) does not mean he HAS to take them. He could project this year's income to NOT take certain expenses, costs or depreciations raising his level of CURRENT income. The IRS will NEVER complainb about someone projecting they will pay TOO MUCH tax.