Please help! Joint sponsor - business owner.

[seatune 0]

Hello everyone!

I will apreciate your help with problem I have.

Recently we found joint sponsor who offered to help us as my husband's income doesn't meet poverty guidelines.

The problem is - joint sponsor is the owner of the restaurant. As he explained to me he doesn't make 125% poverty guidelines on his 1040 and W2, as any money he makes go back to business. He is the owner of restaurant and his business makes about 100K a year.

Please let me know what are our options at this point?

He is the first/only person who offered to help us and we really want to work this out!

Please share your thoughts and experience.

Thank you so much in advance!

Edited June 10, 2014 by seatune

[Boiler 46,198]

Find another co sponsor.

[stjustethamy 0]

Not that I know. But I was told that a Co sponsored cannot be a business owner. But it's always good to try. Good luck

[KayDeeCee 4,896]

It is personal income, not business income that matters. What is on line 22 of his most recent 1040 for 2013 is the number that will let you know if he qualifies to be your joint sponsor. If not, you need to find someone else that does meet the requirement.

[Sirliner 26]

That 100k a year is probably gross profit, not net. The profit margin in the restaurant business is notoriously thin. Sounds like a crafty business owner. How does he have a W2, which is for an employee? As KayDeeCee says, it's Form 1040, line 22 that matters. Although I'd guess his schedule C is probably inflated, unless he's an LLC or S Corp. Regardless, u have no "options" with this guy.

[seatune 0]

thank you everyone for your answers.

I am in desparate need of co sponsor which we cannot find...

[seatune 0]

That's what I found through my research:

"Q: If the sponsor owns a business, should he/she submit individual or business tax returns?

A: The sponsor must submit individual returns – by definition, a sponsor must be a person and not an entity (business, church, organization, etc.). Note that the business income/loss will often be listed on the individual return – officers should look at the personal income portion of the return (wages, salaries and tips, dividends, etc.).

Q: How should an officer calculate a sponsor’s income/loss from the tax return?

A: Officers should rely to the extent possible on "Total Income" (Line 22 on the 1997 1040). When the sponsor owns a business, or is a personal contractor, that figure can be misleading, however, reflecting a "loss" when in fact the sponsor’s real expendable income was well above the requisite minimum income level. In such cases, officers should look at the totality of the sponsor’s personal income (wages, salaries and tips, dividends, etc.), rather than business income/loss that may be factored into total income on Line 22. As in the case of salaried sponsors, the key factor is the sponsor’s current and sustainable income.

The business income cannot be totally discounted, however, if the business is the sponsor’s primary source of income. In most cases, Line 22 will reflect the sponsor’s financial situation. In more complicated cases, the sponsor (or his/her accountant) should be able to clarify the sponsor’s real personal income. A business "loss," for example, might be the result of legitimate deductions for depreciation, but is not necessarily an indication of imminent bankruptcy. In the more complicated cases, where the sponsor’s real income is not readily clear, posts may request an advisory opinion from CA/VO/L/A."

so maybe we still have a chance with this co sponsor?

[Hypnos 6,578]

You can try, but I wouldn't hold your breath. It would be best to have a backup plan in case they call you on it, or as Boiler said obtain a different joint sponsor entirely.

If the AoS winds up being denied then you would likely be placed into removal proceedings shortly afterwards, and that isn't something you would want.