I-134 Tax Question

[ScottMichela 0]

Hey all,

I have sort of a weird question here that I'd like to toss out there. I am completing my 2012 tax returns, and since I was a student 1/2 the year they look low. I am self-employed now, so I expect them to look heavily to my previous year's tax return. As it stands I am just below the cusp of 125% on my 2012 1040. Here's where it gets tricky...

In my time between graduation and full time work I was paid $1500 in cash to build a shed. I have no proof of this transaction since it was done in cash, and the guy obviously wasn't going to send me a 1099 if he wanted to pay me in cash. This is a substantial enough payment that I want to report it, and would also like to do so for the purposes of pushing my 1040 into the 125% requirement. However I am nervous that $1500 of undocumented income which just so happens to qualify me on the i-134 would look suspicious to a CO. Is there anyway they could question your tax return in this way? Do they have that discretion or am I losing my mind trying to guess their actions? The best that I can do to document this $1500 is show the cash deposit I made to the bank, but it was mixed in with other checks I deposited at the same time so it doesn't even show up as $1500.

If you've got experience with taxes or the I-134 please help!

Edited February 23, 2013 by ScottMichela

[Gary and Alla 3,694]

Hey all,

I have sort of a weird question here that I'd like to toss out there. I am completing my 2012 tax returns, and since I was a student 1/2 the year they look low. I am self-employed now, so I expect them to look heavily to my previous year's tax return. As it stands I am just below the cusp of 125% on my 2012 1040. Here's where it gets tricky...

In my time between graduation and full time work I was paid $1500 in cash to build a shed. I have no proof of this transaction since it was done in cash, and the guy obviously wasn't going to send me a 1099 if he wanted to pay me in cash. This is a substantial enough payment that I want to report it, and would also like to do so for the purposes of pushing my 1040 into the 125% requirement. However I am nervous that $1500 of undocumented income which just so happens to qualify me on the i-134 would look suspicious to a CO. Is there anyway they could question your tax return in this way? Do they have that discretion or am I losing my mind trying to guess their actions? The best that I can do to document this $1500 is show the cash deposit I made to the bank, but it was mixed in with other checks I deposited at the same time so it doesn't even show up as $1500.

If you've got experience with taxes or the I-134 please help!

It is self employment and not suspicious at all. If it is claimed and taxes are paid on it, no questions asked.

Claim all income if it helps you.

[X Factor 1,112]

You can claim the $1500 income on Schedule C for business income. I don't know if the CO will question that. Is your current income above the accepted level? Do you have pay stubs and a letter from your current employer to verify current income?

[Gary and Alla 3,694]

You can claim the $1500 income on Schedule C for business income. I don't know if the CO will question that. Is your current income above the accepted level? Do you have pay stubs and a letter from your current employer to verify current income?

Good point. CURRENT income is usually far more important than last year's income. Is your current income sufficient and how do you prove it?

[ScottMichela 0]

Yes I am self emplyed now projecting 22k. I will be showing letters from my 3 clients, invoices and matching checks. I will declare it, was just freaking myself out that un documented $ which puts me conveniently into the 125% range could look like fluffing

[ScottMichela 0]

And just to clarify, the tax return doesn't really reflect my self employment. It reflects more that I was a student and then worked for 4 months at a firm earning at a rate of around 48k. The current self-employment is the result of a big downsize.