AOS-- Three Thorny Questions on the I-864ez

[Mizike 6]

Hi VJers,

I have a bit of an issue with my AOS package and this has to do with whether I should list myself as EMPLOYED or SELF EMPLOYED. Instructions are not too clear for my situation.

Question 1

I am an owner of two C corporations and since these are small businesses, I therefore consider myself SELF EMPLOYED. But I do receive a regular salary from both businesses and from a legal point of view, I am an EMPLOYEE.

At least thats my interpretation.

So with this in mind, I filled out a 1-864ez and along with my tax returns, W2s, 1099s, and pay stubs, I also included an employment verification letter from my employer…. which would be me. According to the I-864 instructions, I am not allowed to sign the letter myself.

I thought about it and decided to include the letter regardless as it describes my employment situation—i.e., I am the sole owner/officer for these two corporations and that there is no one to sign this letter but me.

Question 2

The other issue is this:

On my G325, I listed myself as “XXX Owner” under “Occupation.” Im concerned this might trigger an RFE if they think Im "SELF EMPLOYED" and they may ask for other evidence like business licenses (which I have). So, to possibly avoid this situation, in the I-864ez, should I list my occupation as “President” instead of “XXX Owner”?

Question 3

A minor one (but a questions for the accountant/tax minded): As an owner of C corporations, do I need to attach any business income/loss schedules? This would only apply in the event they interpret me as a SELF EMPLOYED.

Thank you gals and guys in advance!

Edited October 2, 2015 by Mizike

[teeak 224]

1) It depends on how you file your taxes. Do you file schedules C/D/E/F?? If so, then you'll be considered self-employed. Owners of companies receive salaries but, you're an owner first, employee second.

This is from the I-864 instructions:

"If you selected Part 6., Item Number 1.b. that you are self-employed, you should have completed one of the following forms with your Federal income tax return: Schedule C (Profit or Loss from Business), Schedule D (Capital Gains), Schedule E (Supplemental Income or Loss), or Schedule F (Profit or Loss from Farming). You must include each and every Form 1040 Schedule, if any, that you filed with your Federal income tax return."

Another note, if you are self-employed then you can't use the Form I-864EZ and will have to use the regular I-864. See I-864EZ instructions, page 4 [item number 1b]

2) To avoid any confusion, it's best to just list yourself as self-employed and provide those business licenses with your I-864.

3) Yes, include those schedules. I'd recommend reading through the I-864 instructions carefully to avoid any checklists.

Edited October 2, 2015 by teeak

[Mizike 6]

1) It depends on how you file your taxes. Do you file schedules C/D/E/F?? If so, then you'll be considered self-employed. Owners of companies receive salaries but, you're an owner first, employee second.

This is from the I-864 instructions:

"If you selected Part 6., Item Number 1.b. that you are self-employed, you should have completed one of the following forms with your Federal income tax return: Schedule C (Profit or Loss from Business), Schedule D (Capital Gains), Schedule E (Supplemental Income or Loss), or Schedule F (Profit or Loss from Farming). You must include each and every Form 1040 Schedule, if any, that you filed with your Federal income tax return."

Another note, if you are self-employed then you can't use the Form I-864EZ and will have to use the regular I-864. See I-864EZ instructions, page 4 [item number 1b]

2) To avoid any confusion, it's best to just list yourself as self-employed and provide those business licenses with your I-864.

3) Yes, include those schedules. I'd recommend reading through the I-864 instructions carefully to avoid any checklists.

Thanks for the excellent response Teeak.

I should have included one more piece of information: for 2014: I did not file any schedules with my tax returns. So beyond the wages I reported, I did not report taking additional business income from my businesses and no schedule C (business income from profit/loss) was filed. Therefore, I think I can pass as an employee because the instruction says:

Item Number l.b. Select “Yes” if you are using only your own earned or retirement income that you can document with an IRS Form W-2. If you are self-employed, you must select “No” to the question and you cannot use Form I-864EZ.

Conversely, if I report myself as SELF EMPLOYED, then would NVC flag me as I did not need to file a schedule C?

A bit of a pickle here.

[teeak 224]

Hmm, if you claim yourself as self-employed and don't include those schedules then NVC will send you a checklist telling you to enclose them.

Since you filed taxes based on your wages, it's probably best to just report yourself as an employee and include the IRS tax transcript. If you include the tax transcript then you don't need W2s or Form 1040s. Also, employment letter is just secondary evidence, you're not required to include it. So you might just want to include pay stubs and forgo the letter.