Financial requirement

[VJmember2020 32]

Hello all 

 

I just graduated dental school and have just began working this week. 

We submitted our i130 petition last week. So when my spouse goes to the interview stage down the road, we will need a joint sponsor as I will not have my 3 years of tax return correct? 

I have no issue with the joint sponsor part but just wondering. She lives in the UK and Im a US citizen. 

 

[user555 196]

You don't need 3 years of tax returns. Just the latest one. I bet you'll have your 2020 taxes done by the time you're approved in April/May 2020. You need your tax returns after you're approved at the NVC stage. If you didn't make enough or your current income for 2021 is too low, then you'll need a joint sponsor.  

[Lucky2Lucky 2,526]

No, assuming you got a job as a dentist and make enough when she goes to the interview you will not need a joint sponsor. If you haven't filed taxes the last 3 years you will write a statement on why you were not required to file. The consulate cares about what you are making today, not the past. It will probably be about a year before you need to submit this and you will have your 2020 tax transcript by then as well.

[JFH 12,190]

Assuming you are working as a dentist then you should be fine. It’s going to be around a year or so before your spouse reaches the London embassy and by then you will have established a good pattern of income. 
 

 

[VJmember2020 32]

Thank you all for the extremely quick response. I thought 3 years of statements were required. But that is nice to know its not needed. 

 

I am hoping our petition gets approved around 8-10 months but planning for the worst 12-24 months 😰

 

Hope everyone is staying safe. 

[JeanneAdil 6,505]

2020 tax returns should show as married (either joint or separate)

 

[Wuozopo 4,293]

21 hours ago, VJmember2020 said:

Thank you all for the extremely quick response. I thought 3 years of statements were required. But that is nice to know its not needed. 

There is a section on the I-864 that asks for the Total Income amount from three years of tax returns, but only the most recent complete tax return (or transcript) is required for submission.  Even your 2020 return may fall short if you were only working a fraction of the 2020 tax year. You will prove your current income is sufficient with an employer letter stating your yearly salary or six months of pay stubs. If you have opened your own practice and are self employed, then it will be more difficult. Normally only a tax return will be sufficient proof of self employed income because there is no employer to provide a letter or monthly salary payments. 

[VJmember2020 32]

Just now, Wuozopo said:

There is a section on the I-864 that asks for the Total Income amount from three years of tax returns, but only the most recent complete tax return (or transcript) is required for submission.  Even your 2020 return may fall short if you were only working a fraction of the 2020 tax year. You will prove your current income is sufficient with an employer letter stating your yearly salary or six months of pay stubs. If you have opened your own practice and are self employed, then it will be more difficult. Normally only a tax return will be sufficient proof of self employed income because there is no employer to provide a letter or monthly salary payments. 

Hmmm understood. I haven’t opened up my own practice, but do you think it would be less of a headache if I just got a joint sponsor ? 
 

reason being is I will have an independent contract and not a w-2 form And I also don’t get paid salary it is % based. Yes I could show pay stubs, which should be sufficient. 

[Wuozopo 4,293]

2 hours ago, VJmember2020 said:

Hmmm understood. I haven’t opened up my own practice, but do you think it would be less of a headache if I just got a joint sponsor ? 
 

reason being is I will have an independent contract and not a w-2 form And I also don’t get paid salary it is % based. Yes I could show pay stubs, which should be sufficient. 

You’re a dentist and surely can show $21,550 a year projected earnings with pay stubs. You will not need a joint sponsor. 
 

As a side note from a self-employed independent contractor:

You are self-employed to the IRS. Be sure and do estimated tax payments by Sept 15 and Jan 15 (for 2020 tax year) because nobody is holding federal taxes or Social Security out of your checks and making payments to the IRS on your behalf. The IRS wants some coming in during the tax year and not all paid in when you file or they will tack on a penalty fee. 
 

Then for the 2021 tax year, your estimated tax dates are:

Apr 15

June 15

Sept 15

Jan 15

 

[VJmember2020 32]

1 minute ago, Wuozopo said:

You’re a dentist and surely can show $21,550 a year projected earnings with pay stubs. You will not need a joint sponsor. 
 

As a side note from a self-employed independent contractor:

You are self-employed to the IRS. Be sure and do estimated tax payments by Sept 15 and Jan 15 (for 2020 tax year) because nobody is holding federal taxes or Social Security out of your checks and making payments to the IRS on your behalf. The IRS wants some coming in during the tax year and not all paid in when you file or they will tack on a penalty fee. 
 

Then for the 2021 tax year, your estimated tax dates are:

Apr 15

June 15

Sept 15

Jan 15

 

thank you. I will definitely be getting an accountant for this because I heard it can be confusing with independent contractors. 

Dental school never taught us anything else besides teeth. so that was frustrating. thank you for the info!

[Wuozopo 4,293]

42 minutes ago, VJmember2020 said:

thank you. I will definitely be getting an accountant for this because I heard it can be confusing with independent contractors. 

Dental school never taught us anything else besides teeth. so that was frustrating. thank you for the info!

The first year is hardest because you don’t have a clue yet how much you can expect to earn and what your tax obligation will be. And as “self employed“ you have the opportunity to take business expenses to reduce your taxable income. That could be things the practice doesn’t provide like equipment, business cards, PPE.

 

You only have 12 days to get the Sept 15 estimated payment In. Shoot them something like $1000 just to cover the bases and be getting something in. If you overpay, it’s a refund just like regular employees that have too much held out of their checks. 
 

Online payment https://directpay.irs.gov/directpay/payment?execution=e1s1

In the drop downs, you will choose:

Reason- Estimated Tax

Apply payment to- 1040 ES (that ES is for “estimate”)

Tax Period- 2020

 

Or you can mail a paper form and check.  See the instructions here and scroll to the end to find Form 1040ES Payment Voucher 3 (Sept). https://www.irs.gov/pub/irs-pdf/f1040es.pdf

That even has some estimation worksheet materials and some explanation to read, even if you decide to ultimately pay online.