Affidavit of Support and line 20a of 1040

[pjandrachel 0]

Hi all

We have been researching for the last few days our options. Our Co-sponsor fell through because we found out that in her taxes line 22 was not enough to meet the minimum requirements due to her business deductions!

My husband (the usc) is on social security, but also for the past few years he has been selling items on ebay for profit and this profit combined with his social security does take him over the minumum requirements for the past few years!

Thinking now that he can combine these incomes and file schedule c and claim no deductions with his 1040 and he will have enough income to meet the minimum income requirements we are looking into this avenue!

The only thing is his social security is under the taxable about so is in line 20a of 1040 and doesnt get added with the numbers in the right column to get the total income in line 22!

Whats do you suggest we do?

1 - Add 20a on 1040 to the rest and include on line 22

OR

2 - Just have 20a and 22 seperate and include in a letter about where the self employment income is achieved that both incomes combined meet their requirements and why this does not show on the 1040!

Also if we go this route how does this sound for evidence? -

- Tax transcripts and schedule C (For profit made on ebay)

- Letter regarding supplemental income amounts and where this income came from, that it will continue (he has a very large stock of items to sell)

- Social Security statements to show annual income from social security

- Copies of payments recieved via paypal

Thank you

[Villanelle 4,122]

Has he been filing a schedule C for the last few years he has been selling items on ebay or is this just something (the schedule C) youre considering filing this year to boost your income to make your income high enough to meet the guidelines?

[pjandrachel 0]

He did it for 2011 taxes and will do it again for 2012 taxes!

[Villanelle 4,122]

Then you should be fine.

I think the part youre hung up on is the instructions state for line 23 to list your current indiv income. it refers you to the instructions. The instructions tell you to refer to your taxes.

Your total income is not reflected on line 22 of your taxes as it is not all taxable, some of it is SS which is not taxable.

So on line 22, you enter your total income. Thats SS+ebay or line 20a+22 enter it on line 23 of the 864.

You can highlight the numbers on the tax return or transcript and attach a letter explaining your total income calculation and source and documentation of the income.

It would be proof of the SS income (SS statement) and proof of the business. Your business is selling items on ebay. Youve been doing it for 2 years now so it is (IMO) going to be considered stable. (as long as both years show around the same amount of profits)

You must write a strong letter. Your approval hinges on the letter. Detail the business income, types of items sold, inventory available for sale, ease of items sold, on ebay you have a seller rating, (Im sure yours is high, so include what yours is)

Im not really sure if you have profit/loss statements (?) I mean is this something that you purchase items and resell? Or are you just selling items that you have? If its stuff that you currently own like model trains and you own 200 of them and they retail at 100$ each and you sell 10 a year. You would list that on a sheet as your business inventory. If youre currently taking in and reselling items, you would need profit/loss statements. (bought x item for x amount, resold x for x amount)

Since the 864 can potentially be in effect for a long time, you need to show the income will continue for a long time. Simply saying like you did in your first post " it will continue (he has a very large stock of items to sell)" Isnt going to cut it in the letter.

A 2 yr history is + but its not enough, you need the future as well.

[Villanelle 4,122]

Then you should be fine.

I think the part youre hung up on is the instructions state for line 23 to list your current indiv income. it refers you to the instructions. The instructions tell you to refer to your taxes.

Your total income is not reflected on line 22 of your taxes as it is not all taxable, some of it is SS which is not taxable.

So on line 22, you enter your total income. Thats SS+ebay or line 20a+22 enter it on line 23 of the 864.

You can highlight the numbers on the tax return or transcript and attach a letter explaining your total income calculation and source and documentation of the income.

It would be proof of the SS income (SS statement) and proof of the business. Your business is selling items on ebay. Youve been doing it for 2 years now so it is (IMO) going to be considered stable. (as long as both years show around the same amount of profits)

You must write a strong letter. Your approval hinges on the letter. Detail the business income, types of items sold, inventory available for sale, ease of items sold, on ebay you have a seller rating, (Im sure yours is high, so include what yours is)

Im not really sure if you have profit/loss statements (?) I mean is this something that you purchase items and resell? Or are you just selling items that you have? If its stuff that you currently own like model trains and you own 200 of them and they retail at 100$ each and you sell 10 a year. You would list that on a sheet as your business inventory. If youre currently taking in and reselling items, you would need profit/loss statements. (bought x item for x amount, resold x for x amount)

Since the 864 can potentially be in effect for a long time, you need to show the income will continue for a long time. Simply saying like you did in your first post " it will continue (he has a very large stock of items to sell)" Isnt going to cut it in the letter.

A 2 yr history is + but its not enough, you need the future as well.

[pjandrachel 0]

Thank you for the response!

It is mainly items that have been collected and stuff we have in the house therefore no cost now! Funny you should mention the trains a he has a large collection that he used many years ago and are now considered collectable and is starting to list them!

Just another quick question - how do we show the income will continue for a long time? We could provide an inventory but there is so much in his storage this could take a very long time!

Would we have to look into how much stuff he has - how much he sells per year to give an estimation of how long this can continue?

The thing is in this econocomy someone could have a fantastic job with good income and get layed off tomorrow! So there are never any gaurantess that the income can continue the same for many years!

[Villanelle 4,122]

I really dont know the specifics of your situation or what you sell. I can only really give you general advice on what theyre looking for.

You have a business. (because you have a schedule C, thats a business) You have a good history (2 years) so thats a point in your favor. Theyre going to be looking for proof that the income from the business can continue in the future.

Youre mentioning 'storage'. Is this outside storage? Like a storage unit? A receipt or a bill showing you have x amount of storage space rented somewhere where these items are housed would be good. If not a similar statement stating the items are located in a prvt garage taking up x amount of sq ft might be good. If you truly have staggering quantities of items and its not practical to list each individually, then dont. Give apx quantities and values. (But youd have to state so) State you have an extensive collection of valuable collectibles that include apx 200 model trains valued at x amount, 300 comic books valued at x amount, 500 action figures valued at x amount, etc etc. Your business plan is to sell a portion of the collection each year as the market dictates. Include all of the above about your ebay rating and whatnot. (perhaps printouts of stuff you sold and pictures of similar items you still have in bulk will help?)

Like you mentioned, theres no guarantee- esp with self-employed income. They may not count this as 'stable future income'. Its going to be up to the person reviewing its discretion. Thats why you need to make your self employment letter as strong and stable sounding as possible. Try to secure another co-sponsor in the mean time as a back up.

[pjandrachel 0]

Just a quick thought! Would it be up to the person reviewing at the nvc stage or interview stage?