I-134: Clarification on the Line 22 of the Tax Return

[neodragon0l 6]

Hi I am helping out a fellow VJ on this forum. She is too shy to post a topic so I am doing it for her.

Background: USC is a self-employed handyman with a 40k gross income. The income is documented with 1099s. After doing USC's taxes, USC has a 15k adjusted income (line 22 is what she says. please confirm). Can you confirm that the poverty guidelines refers to the gross income instead of the adjusted income on the line 22 of the tax return. Thanks!

[Tintin and Mike 127]

I think I have an idea who that is

Anyways it's gross income (before tax) and it's Line 22 on 1040

[neodragon0l 6]

Thanks Tin Tin or Mike hehe. could you let her know too.

[neodragon0l 6]

I think I have an idea who that is

Anyways it's gross income (before tax) and it's Line 22 on 1040

I also figured it out. I think the fiance listed a loss in the farm or business in the 1040. They definitely do not meet the poverty guidelines.

[Tahoma 2,292]

Hi I am helping out a fellow VJ on this forum. She is too shy to post a topic so I am doing it for her.

Background: USC is a self-employed handyman with a 40k gross income. The income is documented with 1099s. After doing USC's taxes, USC has a 15k adjusted income (line 22 is what she says. please confirm). Can you confirm that the poverty guidelines refers to the gross income instead of the adjusted income on the line 22 of the tax return. Thanks!

Line 22 on form 1040 is called "total income". This is the amount which should be used by the self-employed. If line 22 shows $15K, then they are going to have a problem.

[Hank_ 9,174]

Hi I am helping out a fellow VJ on this forum. She is too shy to post a topic so I am doing it for her.

Background: USC is a self-employed handyman with a 40k gross income. The income is documented with 1099s. After doing USC's taxes, USC has a 15k adjusted income (line 22 is what she says. please confirm). Can you confirm that the poverty guidelines refers to the gross income instead of the adjusted income on the line 22 of the tax return. Thanks!

Neither the I-134 or the I-864 forms/instructions (which you have to complete for AOS) state anything except "income" it does not say gross income nor does it say adjusted income. A person's income is the money they make BEFORE taxes, so use what is on the 1099 (or W-2 for those not self-employed) for total income.

[Tahoma 2,292]

Let's be very clear about this: No matter how much income he states on his I-134 (or I-864), the consular officer will apply the poverty guidelines to the amount on line 22 of his income tax return. That amount is $15K.

He's going to need some liquid assets to make up the difference, or he can try to use a joint sponsor, or he can re-file his tax return and claim less deductions, or he can wait until he files his 2012 income tax return if he thinks that will help.

[neodragon0l 6]

@Hank, since the person is self-employed, the USC had to complete a Schedule C (Business Profits and Loss) Line 12 of the 1040. After doing the schedule, the 40k shrank to 15k. I told the person that she is confusing gross revenue of the business from the 1099 to actual gross income of the USC (15k). That's why Tahoma is right that the line 22 is the official gross income.

Now, USC must overcome the financial challenge especThe beneficiary has a child as well. Looking at the I-864, the USC needs to fill in the gap of 8k. I do not know anything about joint sponsorship especially in Manila. There is no guideline that I can research on. The true OP is probably reading this and may want to know what are the do's and don'ts of doing joint sponsorship.

[Hank_ 9,174]

I agree, personal income is after business expenses are deducted. This may be one year he shouldn't have deducted "every possible" expense and showed a bigger income.

The co-sponsor route is a ####### shoot with USEM, a couple just got turned down and their co-sponsor from what they said was very qualified, they did not complete the I-864 which I have read numerous times is better when going the co-sponsor route with USEM than the 134.

Filling the gap is not how it works, the co-sponsor has to qualify to support themself, the petitioner, the beneficiary and the child, plus anyone else that the co-sponsor supports, so that 8K gap just got bigger. Then its a roll of the dice with the CO at the embassy.

[neodragon0l 6]

@Hank - You may be right about the business expense.

I am actually following up on the other couple who was turned down... I will reserve my comments on that case (for once).

What I meant is that the petitioner has to fill that 8k gap. I don't know for all I know the client has 40k of cash in the bank (8k gap x 5). Like you said, it is a roll of the dice at this point. I have been by my colleagues to always go with a game plan before you meet the judge, or the CO.

Edited October 11, 2012 by neodragon0l

[Hank_ 9,174]

I think it only 3 times the shortage, could be wrong... old-timers ya know.

[sunandmoon 450]

I think it only 3 times the shortage, could be wrong... old-timers ya know.

Correct. for AOS, the I-864 requires only 3 times for a spouse.

[neodragon0l 6]

Thanks for the clarification! Hank and Sun!. If it's five times, it's a 20 per cent down payment for a house in California.

Edited October 12, 2012 by neodragon0l