I-864 Mess; don't know what to do

[123American123 0]

Hello again community! I am in the process of filling out my I-864 right now to bring my husband to America via Guangzhou DCF. I currently live and work in China now, and I don't know what to do in terms of my tax returns and the I-864. For the past three years, I have filed tax returns and paid US taxes. However, I have read that what I put on the I-864 for "total income" has to match exactly what is indicated on line 22 of my tax returns. For the past three years of my tax returns, line 22 (and line 37) either show nothing or if there is a number there, it is MUCH lower than my actual income here. So if I calculate total and adjusted gross income based on how much I get paid here, there would be problems because it will not match what is on my tax returns and will be a much higher number.

What makes the situation more of a mess is that my employer gives me a part of my salary in cash as a perk for being a part of the company for awhile. The rest is a taxed amount that is automatically put into my Chinese debit card. I've asked if they could put this cash transaction on paper, but they refuse to because they say if it is put on paper, it will have to be taxed. I've told this information to my tax preparer, but I don't think it is effectively indicated on my tax return.

So my questions to this mess are:

1.) Should I file amended tax returns for 2013, 2014, and 2015? I've read that amended tax returns don't show up on tax transcripts, but I would feel more comfortable straightening everything out if need be.

2.) Has anyone else who lives and works in China dealt with a messy situation with tax returns, getting salary in cash, and messy employment contracts?

3.) My parents will be my joint sponsors. I have read that if I have joint sponsors whose income is well over the poverty line, they will disregard whatever stuff I have. Is this 100% true?

4.) Should I find a new tax preparer or attempt this myself? I have sent an e-mail to the tax preparer who did my previous tax returns asking to explain what is being said on my 1040s, but I have yet to hear a response from him (I asked this more than a week ago).

My husband isn't planning to do the interview until February, so I guess there is plenty of time for something to get done... Thank you to all for your help!!!!!!

[Eric-Pris 1,607]

So you are taking cash off the books and not declaring that income on your tax returns, so you are committing tax evasion. I would strongly advise against including that cash in the "total income" on the 864 because you will certainly be asked why the amounts are different than your returns, you will basically confess to tax evasion. Good luck getting a visa then. All income should be declared.

You have 2 choices:

1. on I-864 for total income, put the amount of income that you declared on your tax returns

2. amend your tax returns to show the correct total income

I would go with #2. You will have to pay taxes and interest/penalty on that cash that you failed to declare. Cash income can be added to line 21 under "Other income".

[123American123 0]

That's what I thought. I will use outside help for my amended tax returns and not use the current tax preparer who put me in this mess Thank you!

[Merrytooth 5,748]

Is your current job going to continue when you move back to US?

If not, you might need a joint-sponsor /asset to meet the I-864 requirement.

[123American123 0]

My current job will not continue when I move back to the US. And my parents will be my joint sponsors.

[Jojo92122 1,924]

That's what I thought. I will use outside help for my amended tax returns and not use the current tax preparer who put me in this mess Thank you!

The current tax preparer is not the one that put you in this mess.

You and your employer by choosing to cheat on taxes and take cash compensation put you in this mess. You could have avoided this mess by not cheating on your taxes.

[usmsbow 802]

So you are taking cash off the books and not declaring that income on your tax returns, so you are committing tax evasion. I would strongly advise against including that cash in the "total income" on the 864 because you will certainly be asked why the amounts are different than your returns, you will basically confess to tax evasion. Good luck getting a visa then. All income should be declared.

You have 2 choices:

1. on I-864 for total income, put the amount of income that you declared on your tax returns

2. amend your tax returns to show the correct total income

I would go with #2. You will have to pay taxes and interest/penalty on that cash that you failed to declare. Cash income can be added to line 21 under "Other income".

That's what I thought. I will use outside help for my amended tax returns and not use the current tax preparer who put me in this mess Thank you!

Since you paid US income tax, I am guessing your income was above the Foreign Income exclusion? If so, yes, do #2. If not, then well, still do #2, but at least you won't owe anything! It also wouldn't require any outside help I'm guessing, should be pretty straight forward.

[123American123 0]

@jojo92122 I am not trying to start an argument here, but I specifically remember always sending copies of my employment contract to my employer, and also telling him how much I was given in cash every month. I gave him no room for error so don't make me sound like some kind of dumb tax evader...

[SunflowerSweet 1,321]

@jojo92122 I am not trying to start an argument here, but I specifically remember always sending copies of my employment contract to my employer, and also telling him how much I was given in cash every month. I gave him no room for error so don't make me sound like some kind of dumb tax evader...

But you say this has happened the past 3 years? If it really was just the tax preparer's fault and you had nothing to do with it, why didn't you do something to address the issue the first year when you got your tax information back and noticed that the income it had listed for you was completely off?