income levels different if self employed

[Bill and Eve 1]

On another board on this site someone is trying to say that if you are self employed it is money taken in MINUS expenses to meet the threshold. I dont think this is right but am hoping to get confirmation on this.

[Canadiandggal 49]

On another board on this site someone is trying to say that if you are self employed it is money taken in MINUS expenses to meet the threshold. I dont think this is right but am hoping to get confirmation on this.

wait for conformation but I believe that is actually right

[MikelanNida 28]

hello, i may not be the confirmation you seek but, a friend of mine is self employed, not doing a visa, but he bid and won two $80,000 dollar contracts last year, looking at his deposits one could say he made $160,000 last year, but after he paid workers, equip. rentals etc. he made about $17,000 on each job. So you see theres a big difference, did he make $160,000 or $34,000?

[Canadiandggal 49]

hello, i may not be the confirmation you seek but, a friend of mine is self employed, not doing a visa, but he bid and won two $80,000 dollar contracts last year, looking at his deposits one could say he made $160,000 last year, but after he paid workers, equip. rentals etc. he made about $17,000 on each job. So you see theres a big difference, did he make $160,000 or $34,000?

Now that I just read that ...I am positive it is correct. You have to remember that you only pocket part of it and they will want to know what it is after expenses.

[vonxeric 0]

On another board on this site someone is trying to say that if you are self employed it is money taken in MINUS expenses to meet the threshold. I dont think this is right but am hoping to get confirmation on this.

That someone is correct. What shows up on a Schedule C, Profit or Loss from Business (and evenutally on Line 22 Total Income used on the I864), is net PROFIT not Gross Income before expenses. I dont think too many people want to pay tax on money not actually earned

[pushbrk 12,898]

On another board on this site someone is trying to say that if you are self employed it is money taken in MINUS expenses to meet the threshold. I dont think this is right but am hoping to get confirmation on this.

A self employed person states their current income from line 22 of the 1040, so yes, after deducting expenses on schedule C. Business income is revenue minus expenses and/or overhead. Often the self-employed show a negative number on line 22 because legitimate deductible expenses exceed revenue.

[TOTALFOODNUT 0]

HOW DO I VERIFY INCOME WITH CHECK STUBS IF I AM SELF EMPLOYED CONTRACT WORKER.MY FIANCE AND I ARE HAVING SUCH A HARD TIME PROVING THAT SHE WILL NOT BE A PUBLIC CHARGE AND WE NEED HELP TELLING THE EMBASSY HOW SHE WILL BE OK . I MAKE 3000 EACH MTH AND WORK CONTRACT LABOR SO CAN ANY ONE HELP ME PLEASE WE ARE SO WORRIED ,SHE HAS BEEN GIVEN A BLUE SLIP IN FIRST INTERVIEW TO BRING BACK PROOF OF SUBSTAINED INCOME TO SUPPORT HER .WILL MY W2 AND 1099 HELP ME THIS YEAR WHEN I FILE ? HELP PLEASE

Edited December 26, 2010 by TOTALFOODNUT

[Gary and Alla 3,694]

On another board on this site someone is trying to say that if you are self employed it is money taken in MINUS expenses to meet the threshold. I dont think this is right but am hoping to get confirmation on this.

Correct.

Money "taken in" is gross business revenue which they do not care about. They care about personal income which appears on LINE 22 of your form 1040.

Gross business revenus MINUS business expenses and costs and depreciation equals PROFIT from the business. The PROFIT is what ends up on line 22.

You qualify with personal income, not business income. Businesses cannot sponsor an immigrant.