Tax Form Schedule C Profit & Loss

[Texas Bound 0]

My side job is real estate. Does the embassy know how to read the 1040 & 1040 schedule c. Are they looking at the total income overall? Or losses etc? Just wondering.

[payxibka 10,045]

My side job is real estate. Does the embassy know how to read the 1040 & 1040 schedule c. Are they looking at the total income overall? Or losses etc? Just wondering.

I have heard it is adjusted gross income... true or not I do not know.

[diadromous mermaid 36]

My side job is real estate. Does the embassy know how to read the 1040 & 1040 schedule c. Are they looking at the total income overall? Or losses etc? Just wondering.

I have heard it is adjusted gross income... true or not I do not know.

Net income from business activity is carried over from a Schedule C into the first part of form 1040 (line 7, I think) so it will be included/fall down to the adjusted income line.

[Yodrak 7]

Texas Bound,

They are looking for your personal total income, Line 22 on the 1040.

This causes consternation to some of the self-employed who want to consider their business' income as their own income. But it's not the business that is sponsoring the immigrant, it's the person. So, as diadromous mermaid points out, it's what carries over to the 1040 from Schedule C that counts. All those business expenses that reduce taxes also reduce one's ability to sponsor an immigrant.

Yodrak

My side job is real estate. Does the embassy know how to read the 1040 & 1040 schedule c. Are they looking at the total income overall? Or losses etc? Just wondering.

[JanaknJanet 0]

Yodrak... haha beat me to it.. i was typing basically the same thing.. then got timmed out and had to relog on pc.. came back.. and you responded with the same thing i was writing.. heheh

Yes it is Line 22 as total Income.. not line 37 which is Adjusted Gross Income..

and not Line 7 Gross Income from Schedule c that number is too high..

What they will look at is Line 22 after all business deductions are claimed.

[Yodrak 7]

JanaknJanet,

Line 7 is wage income, it's Line 12 where the net income (not gross income) from a business is reported. The business income, and expenses, are all reported on Schedule C.

Yodrak

Yodrak... haha beat me to it.. i was typing basically the same thing.. then got timmed out and had to relog on pc.. came back.. and you responded with the same thing i was writing.. heheh

Yes it is Line 22 as total Income.. not line 37 which is Adjusted Gross Income..

and not Line 7 Gross Income from Schedule c that number is too high..

What they will look at is Line 22 after all business deductions are claimed.

[Texas Bound 0]

Yodrak... haha beat me to it.. i was typing basically the same thing.. then got timmed out and had to relog on pc.. came back.. and you responded with the same thing i was writing.. heheh

Yes it is Line 22 as total Income.. not line 37 which is Adjusted Gross Income..

and not Line 7 Gross Income from Schedule c that number is too high..

What they will look at is Line 22 after all business deductions are claimed.

You guys are great. That puts a slight damper on my tax creativity. Now, are they considering all 3 years or the most recent year?

In my case my interview will not be until Feb or Mar this year. Will they look @ my W-2s from 2006 & review over 2005 & 2004 tax statement?

[Yodrak 7]

Texas Bound,

They consider current income and past income, current income - as shown by recent pay statements and an employer's letter - being the most important.

Yodrak

You guys are great. That puts a slight damper on my tax creativity. Now, are they considering all 3 years or the most recent year?

In my case my interview will not be until Feb or Mar this year. Will they look @ my W-2s from 2006 & review over 2005 & 2004 tax statement?

[Texas Bound 0]

Ok, of course Im getting close to my interview & now I am worrying about anything & everything. Tell me about the co sponsor & tax info.

I have current paystubs for this year 2006 well over minimum requirements.

I am slightly above level for 2005 on my taxes, although my income was far over , (I had adjustments made for business credits)

2004 I am below level (same thing, had adjustments made for business credits).

If they go by W-2s Im over by at least 10-20k each year.

If they go by tax statements because of the loss & deductions I have a problem in 2004.

SO MY QUESTION IS....DO THEY ONLY WANT LAST YEAR TAX STATEMENTS? (2005) OR DO THEY SCRUTINIZE ALL YEARS?

06 & 05 IM FINE, 04 NOT OK, 03 FINE

[Bruce n Jen 0]

Texas Bound,

They are looking for your personal total income, Line 22 on the 1040.

This causes consternation to some of the self-employed who want to consider their business' income as their own income. But it's not the business that is sponsoring the immigrant, it's the person. So, as diadromous mermaid points out, it's what carries over to the 1040 from Schedule C that counts. All those business expenses that reduce taxes also reduce one's ability to sponsor an immigrant.

Yodrak

Schedule C only applies to a sole proprietor situation. For those of us "self-employed" and filing as corporations, sub S included, then there's a K1 (tax form) from the business that's reported on the individual tax return.

[payxibka 10,045]

Texas Bound,

They are looking for your personal total income, Line 22 on the 1040.

This causes consternation to some of the self-employed who want to consider their business' income as their own income. But it's not the business that is sponsoring the immigrant, it's the person. So, as diadromous mermaid points out, it's what carries over to the 1040 from Schedule C that counts. All those business expenses that reduce taxes also reduce one's ability to sponsor an immigrant.

Yodrak

Schedule C only applies to a sole proprietor situation. For those of us "self-employed" and filing as corporations, sub S included, then there's a K1 (tax form) from the business that's reported on the individual tax return.

Sure but that income then flows through Schedule E and then onto the 1040

[Trinilad 0]

Texas Bound,

They are looking for your personal total income, Line 22 on the 1040.

This causes consternation to some of the self-employed who want to consider their business' income as their own income. But it's not the business that is sponsoring the immigrant, it's the person. So, as diadromous mermaid points out, it's what carries over to the 1040 from Schedule C that counts. All those business expenses that reduce taxes also reduce one's ability to sponsor an immigrant.

Yodrak

Schedule C only applies to a sole proprietor situation. For those of us "self-employed" and filing as corporations, sub S included, then there's a K1 (tax form) from the business that's reported on the individual tax return.

Sure but that income then flows through Schedule E and then onto the 1040

Being a tax accountant myself, I can tell you that the schedules can be a daunting task for the average lay man especially the likes of those at the Jamaican embassy. So my best bet it to simply take your transcript from the IRS to make the task of negotiating the schedules easy for them. Then attach your copy of the tax return as back up. They will give you back what they do not want. The person who conducted my interview made the comment that the complicated tax returns are sometimes hard to read and she did not know how they expect them to figure out all the schedules cause they are no tax experts. I was in your situation because I have a small business at the side that supplements my income and I just wanted to make it easy for them.