AFFID. OF SUPPORT

[rlt 0]

I see that the total income is a result of different gains.

What happens if I pass the 125% needed, but the W2 income, or the salary was not over the 125%?

Part of it is the capital gain. A substancial part, actually.

Does it matter?

Edited September 15, 2006 by rlt

[Yodrak 7]

rlt,

Yes, it matters. What kind of capital gain? Is it a one-time event or an ongoing thing that will continue to provide you income in the future?

What needs to exceed the 125% of poverty level income requirement is one's current income (on an annulized basis). One's past income, as documented by an income tax return, provides an indication (or not) as to the sustainability of the current income. (Except for the self-employed, where tax returns may be the only way to document 'current' income.)

Yodrak

I see that the total income is a result of different gains.

What happens if I pass the 125% needed, but the W2 income, or the salary was not over the 125%?

Part of it is the capital gain. A substancial part, actually.

Does it matter?

[rlt 0]

Yodrak, thanks as usual.

The capital gain would be an investment held for more than a year, listed as a a schedule D.

It´s a Charles Schwab financial thing.

Does that count or I´m in trouble?

[meauxna 15]

You could always earn more income...

Example: my unearned income was not counted against me, but it was also not 'current' income. Current income + assets + current situation.

[rlt 0]

She has bonds and stockings.

What she earned with it last year is on her tax return.

Does that count as an actual thing as Yodrak mentioned or not?

[Yodrak 7]

rlt,

You didn't answer the question I asked - was it a one-time thing or is it something that's going to recur on an ongoing basis?

Yodrak

Yodrak, thanks as usual.

The capital gain would be an investment held for more than a year, listed as a a schedule D.

It´s a Charles Schwab financial thing.

Does that count or I´m in trouble?

[rlt 0]

Ongoing...

she has this bonds and stocks.

It´s been on her tax return since she has it.

The profit she got from this is on her tax return and that plus the W2 makes the 125%.

In my point of view, this is what she earned last year...

emplyer´s pay and this earnings.

Is that good?

[meauxna 15]

She has bonds and stockings.

What she earned with it last year is on her tax return.

Does that count as an actual thing as Yodrak mentioned or not?

heheh, an actual thing.

er, can't tell.

A capital gain is sometimes a one-time event.

example (probably bad):

Let's say I earn $X per year in salary from my j-o-b.

then, to balance my investments this year, I sell some 'things' (stocks, bonds, funds) and I 'earn' Y profit (because I didn't hold them very long... that money is *taxed* as regular income).

My "income" on my tax return is X + Y, making it look like I earned a lot of money. Which I did, but only on paper. My salary is still X no matter how you cut it.

Since that money would not be ongoing, the CO would likely not 'count' it as permanent income.

Some capital gains could, I suppose (from what Y is hinting at) be ongoing, or occur each year.

OMG, did you just say she has bonds and stockings? I'd better make sure we are talking about the same 'things'' here! pmsl

[rlt 0]

She has bonds and stockings.

What she earned with it last year is on her tax return.

Does that count as an actual thing as Yodrak mentioned or not?

heheh, an actual thing.

er, can't tell.

A capital gain is sometimes a one-time event.

example (probably bad):

Let's say I earn $X per year in salary from my j-o-b.

then, to balance my investments this year, I sell some 'things' (stocks, bonds, funds) and I 'earn' Y profit (because I didn't hold them very long... that money is *taxed* as regular income).

My "income" on my tax return is X + Y, making it look like I earned a lot of money. Which I did, but only on paper. My salary is still X no matter how you cut it.

Since that money would not be ongoing, the CO would likely not 'count' it as permanent income.

Some capital gains could, I suppose (from what Y is hinting at) be ongoing, or occur each year.

OMG, did you just say she has bonds and stockings? I'd better make sure we are talking about the same 'things'' here! pmsl

Well, so..?

She does. That´s where this money came from.

What do you say?

[Yodrak 7]

rlt,

Ongoing is good. Be sure to document it as such.

Yodrak

Ongoing...

she has this bonds and stocks.

It´s been on her tax return since she has it.

The profit she got from this is on her tax return and that plus the W2 makes the 125%.

In my point of view, this is what she earned last year...

emplyer´s pay and this earnings.

Is that good?

[meauxna 15]

Well, so..?

I'm sorry, it is a joke or 'play on words' in English--I didn't see that you are from Brazil at first...

The normal US term is "stocks and bonds".

"Bonds and stockings" could mean something sort of, naughty, in a sexy way. Ask your wife to explain it more.

[Ladylethal 12]

Meauxna and Yodrak, still on income, I keep wondering which counts for the 125% poverty guidelines? The one stated in the W2 as the total income BEFORE paying taxes or the one at the bottom of the last tax return page showing all deductions?

[William33 110]

Gross pay - before tax.

Meauxna and Yodrak, still on income, I keep wondering which counts for the 125% poverty guidelines? The one stated in the W2 as the total income BEFORE paying taxes or the one at the bottom of the last tax return page showing all deductions?

[meauxna 15]

Meauxna and Yodrak, still on income, I keep wondering which counts for the 125% poverty guidelines? The one stated in the W2 as the total income BEFORE paying taxes or the one at the bottom of the last tax return page showing all deductions?

Laura,

the form instructions call for all of your 'earned income'

23. Current Individual Annual Income.

Enter your current individual earned or retirement annual income that you are using to meet the requirements this form and indicate the total on this line.

You may include evidence supporting your claim about yourexpected income for the current year if you believe thatsubmitting this evidence will help you establish ability tomaintain sufficient income. You are not required to submitthis evidence, however, unless specifically instructed to doso by a Government official. For example, you may includea recent letter from your employer, showing your employer'saddress and telephone number, and indicating your annualsalary. You may also provide pay stub(s) showing yourincome for the previous six months. If your claimed income includes alimony, child support, dividend or interest income,or income from any other source, you may also include evidence of that income.

I see an important point there for our OP in this thread...Include evidence of that capital gain.

Anyway, that's the long way of saying what William said.

sorry for the mis-credit W!

Edited September 15, 2006 by meauxna

[Yodrak 7]

Laura,

Line 4 on the 1040EZ, Line 15 on the 1040A, or Line 22 on the 1040 (unless, perhaps, the Foreign Earned Income Exclusion is used).

A W-2 shows only income from employment. Other income also 'counts'.

Yodrak

Meauxna and Yodrak, still on income, I keep wondering which counts for the 125% poverty guidelines? The one stated in the W2 as the total income BEFORE paying taxes or the one at the bottom of the last tax return page showing all deductions?