Proof of Income Question

[LandJ 0]

A quick question for the VJ'rs.

I work in a unique field. Therapeutic foster care. I make a good income, but it's all non-taxible as it's considered a reimbursement by the IRS, not a payment. So, if you look at my tax returns, it looks like I make almost no money. I have a letter from the agency I contract with, and a copy of my contract I have with them. I also will have bank statements showing what I get paid, etc..

Should that be enough? Or should I consider a co-sponsor because my taxable income is so low? My fiance will be interviewing in Montreal, if that makes a difference. I'd hate to have her show up at the interview and get denied because my tax forms show a very low income.

[StraightShooter 62]

I would think that would be enough. They're looking to see if you're above the poverty guidelines, not what is or isn't taxable.

All of my income is non-taxable, but I have proof of income above the guidelines, so I don't foresee any issues down the road when the time comes.

[Darnell 8,479]

that's a special 'non-taxable' type of job in the USA?

Usually, if you have a contract with an agency, irrespective of the job type, that agency will issue you a 1099 in January.

There is a difference between 'non-taxable income' and 'payments received without with holding and medicare tax taken out'.

You might want to revisit this, a bit, be certain . You may find that the agency was supposed to issue you a 1099, and didn't, and now yer on the hook for all of the taxes.

IMO, paying for an hour's consult with a cpa specializing in tax matters (and there are many) will clear up much confusion. If you've already done this, and are truly in a non-taxable 'slot', well, hey - yer done.

Edited January 15, 2012 by Darnell

[Darnell 8,479]

[whoops]

OK - I looked this up. Wow - such a tax liability reversal.

You are supposed to show the tax credit on your tax forms, so that's a plus. At least the monies are shown on the IRS forms in the proper places.

As for 'income', I suggest you supply a letter of attestation, covering the tax code that provides for this 'non-taxable' income - a simple paragraph with the numbered reference , ie -

Pursuant to IRS Code 93-223-AZ-b, I am not liable for income tax on monies received from Company A whilst I provide therapuetic foster care.

[that's an example, tweak it to fit]

and then

make sure it's there along with the Affadavit of Support for your beneficiary to present to any Visa Officer during the interview.

[JohnandWendyB 21]

I work for the state I live in for the agency who pays for that service here. The payments we issue are not intended to serve as income for the foster parent at all. They are meant to ease the burden if caring for such children. Of course, we do not monitor where the money goes and some people take some or all for themselves as payment for their services. I don't know your state or how much you are paid so hopefully no one takes this to mean I am implying you are stealing from the kids. Each state is diffferent. I just know in our state the payments are akin to child support and therefore probably not taxable. Not taxable because it is intended to support a child not the foster parent. Our parents do not get much but it is alot more than I get for child support for my child. My GUESS is either they will look at counting your foster kids as dependants or not counting the maintenance as income. I agree some investigation is in order but rather with your company as to whether this is actually your income or considered a maintenance payment which means it is more meant to offset your cost of caring for these children.

[Gary and Alla 3,694]

A quick question for the VJ'rs.

I work in a unique field. Therapeutic foster care. I make a good income, but it's all non-taxible as it's considered a reimbursement by the IRS, not a payment. So, if you look at my tax returns, it looks like I make almost no money. I have a letter from the agency I contract with, and a copy of my contract I have with them. I also will have bank statements showing what I get paid, etc..

Should that be enough? Or should I consider a co-sponsor because my taxable income is so low? My fiance will be interviewing in Montreal, if that makes a difference. I'd hate to have her show up at the interview and get denied because my tax forms show a very low income.

Non taxable income DOES count and this is one of many forms. You need to provide proof of this income in some form, whatever you have. Other forms of non-taxable income that DO count are child support, workman's compensation, insurance annuities, military hazard pay (combat pay), housing allowances that are specifically FOR housing. Include this in your statement of earnings and attach documentation and maybe a cover letter would help.

[Gary and Alla 3,694]

I work for the state I live in for the agency who pays for that service here. The payments we issue are not intended to serve as income for the foster parent at all. They are meant to ease the burden if caring for such children. Of course, we do not monitor where the money goes and some people take some or all for themselves as payment for their services. I don't know your state or how much you are paid so hopefully no one takes this to mean I am implying you are stealing from the kids. Each state is diffferent. I just know in our state the payments are akin to child support and therefore probably not taxable. Not taxable because it is intended to support a child not the foster parent. Our parents do not get much but it is alot more than I get for child support for my child. My GUESS is either they will look at counting your foster kids as dependants or not counting the maintenance as income. I agree some investigation is in order but rather with your company as to whether this is actually your income or considered a maintenance payment which means it is more meant to offset your cost of caring for these children.

They Do count, whether you like it or not, because it is income for the household. It frees up other money for other expenses.

They WILL count the foster children As dependents, All income counts, all dependents count.

[JohnandWendyB 21]

I don't have a "like" one way or the other in this situation to be clear.