Form I-864, Foreign Earned Income Exclusion situation

[Sunagawa 0]

I am in the process of working on the I-864 and then submit to the NVC.  My situation isn't typical, so I figured I would just mention it here.  I work overseas in Japan as a military contractor.  As a result, I qualify for the Foreign Earned Income Exclusion.  This is nice in that

I get tax breaks for working overseas; however, my IRS tax transcripts exclude my wage income when computing my adjusted gross income.  I know if this goes directly to the consulate due to a hardship this isn't an issue; however, that is not my situation.  I have W2's and records I have

wage income above the poverty threshold for a family of 2. 

 

I was also going to submit proof of assets in case the NVC doesn't understand my situation.  I've already talked with my financial institutions and it looks like a proof of assets is something that can be done.  What would be easier, trying to tell them I make above the poverty in wage income with W2's and explain why my Adjustable Gross Income is low according to the IRS due to my unique situation, or do I just go to the proof of assets and not even bother?  Thanks!

 

 

Edited May 24, 2021 by Sunagawa

[seekingthetruth 1,246]

3 hours ago, Sunagawa said:

explain why my Adjustable Gross Income

Someone else was asking a similar question.  You don't use Adjusted Gross Income unless you are filing 1040 EZ.  For form 1040, you use Total Income, Line 9 on the 2020 form.  See the I-864 instructions.

 

Does your Form 1040 Total Income include all that wage income you are missing on the transcript?  If so, toss the transcript and use your 1040 will all the appropriate forms attached such as W2s,  Form 2555, etc.  You have to include all forms.

 

 

 

[payxibka 10,045]

3 hours ago, Sunagawa said:

I am in the process of working on the I-864 and then submit to the NVC.  My situation isn't typical, so I figured I would just mention it here.  I work overseas in Japan as a military contractor.  As a result, I qualify for the Foreign Earned Income Exclusion.  This is nice in that

I get tax breaks for working overseas; however, my IRS tax transcripts exclude my wage income when computing my adjusted gross income.  I know if this goes directly to the consulate due to a hardship this isn't an issue; however, that is not my situation.  I have W2's and records I have

wage income above the poverty threshold for a family of 2. 

 

I was also going to submit proof of assets in case the NVC doesn't understand my situation.  I've already talked with my financial institutions and it looks like a proof of assets is something that can be done.  What would be easier, trying to tell them I make above the poverty in wage income with W2's and explain why my Adjustable Gross Income is low according to the IRS due to my unique situation, or do I just go to the proof of assets and not even bother?  Thanks!

 

 

Foreign earned Income isn't considered unless it will continue after returning to the US 

[pushbrk 12,898]

6 hours ago, payxibka said:

Foreign earned Income isn't considered unless it will continue after returning to the US 

Continue from the same source, yes.

 

 

[pushbrk 12,898]

7 hours ago, seekingthetruth said:

Someone else was asking a similar question.  You don't use Adjusted Gross Income unless you are filing 1040 EZ.  For form 1040, you use Total Income, Line 9 on the 2020 form.  See the I-864 instructions.

 

Does your Form 1040 Total Income include all that wage income you are missing on the transcript?  If so, toss the transcript and use your 1040 will all the appropriate forms attached such as W2s,  Form 2555, etc.  You have to include all forms.

 

 

 

Income subject to foreign income exclusion is not included in either total income or adjusted gross income.

 

Current income is a separate issue and does not come from and employed person's tax return.  To the OP, what is your "current income" and how are you documenting it?

[Sunagawa 0]

After talking with the NVC last night they told me that I should submit the W2's associated with any IRS transcripts.  Even though I live overseas, I am still in the American System in that I am paying social security and have an American Bank account and get paid in dollars.  I am a resident of Japan under the SOFA agreement, which is a special visa so that I can live in Japan during the duration of the contract I am currently working under on behalf of an American Company on behalf of the US Government.  I am not a resident of Japan in the Japanese system in that I pay income taxes or the like. 

[pushbrk 12,898]

1 hour ago, Sunagawa said:

After talking with the NVC last night they told me that I should submit the W2's associated with any IRS transcripts.  Even though I live overseas, I am still in the American System in that I am paying social security and have an American Bank account and get paid in dollars.  I am a resident of Japan under the SOFA agreement, which is a special visa so that I can live in Japan during the duration of the contract I am currently working under on behalf of an American Company on behalf of the US Government.  I am not a resident of Japan in the Japanese system in that I pay income taxes or the like. 

And what does that mean to  you about what you should do with your affidavit of support?  If you have w2 forms, yes, submit them with your transcripts but anything "tax" is about the past.  You document current income with a pay stub, not a W2.  Your latest W2 is for 2020.  It's late May, 2021 now. 

If you lost your job last week, your current income would be ZERO.  If your current income will continue from the same source, once you're in the USA, then your current gross annual pay is your current income.  For example, if you have a pay stub showing $1,000 a week gross, your current income is $52,000.  Show the pay stub and documentation the income will continue from the same source, and you're good as gold.

[Sunagawa 0]

2 minutes ago, pushbrk said:

And what does that mean to  you about what you should do with your affidavit of support?  If you have w2 forms, yes, submit them with your transcripts but anything "tax" is about the past.  You document current income with a pay stub, not a W2.  Your latest W2 is for 2020.  It's late May, 2021 now. 

If you lost your job last week, your current income would be ZERO.  If your current income will continue from the same source, once you're in the USA, then your current gross annual pay is your current income.  For example, if you have a pay stub showing $1,000 a week gross, your current income is $52,000.  Show the pay stub and documentation the income will continue from the same source, and you're good as gold.

I intend on giving them a latest pay stub from when I file so show I am still getting compensated. 

[pushbrk 12,898]

3 hours ago, Sunagawa said:

I intend on giving them a latest pay stub from when I file so show I am still getting compensated. 

That and what evidence your income will continue from the same source?

[Chancy 6,241]

5 hours ago, Sunagawa said:

I am a resident of Japan under the SOFA agreement, which is a special visa so that I can live in Japan during the duration of the contract I am currently working under on behalf of an American Company on behalf of the US Government.

 

Do you have a formal offer in writing from that American company to continue working for them when you return to the US?  If not, your qualifying income from your current job is $0.

 

[Sunagawa 0]

7 hours ago, Chancy said:

 

Do you have a formal offer in writing from that American company to continue working for them when you return to the US?  If not, your qualifying income from your current job is $0.

 

 

[Sunagawa 0]

I am filing the IRS transcripts and the like because I am required to do so by the AOS.  I'm going to have certified proof of assets to make up any difference in total income. 

 

As far as my current employer goes, no I don't have a letter from them and intend on using my proof of assets with a certified letter from the bank.  The NVC told me there's no time limitation on that once you obtain one after you submit the paperwork.

 

[Chancy 6,241]

46 minutes ago, Sunagawa said:

I am filing the IRS transcripts and the like because I am required to do so by the AOS.  I'm going to have certified proof of assets to make up any difference in total income. 

 

For current annual income, what the I-864 requires is the income you will use to meet the requirements for sponsorship.  To use income to qualify for sponsorship, you must establish your ability to maintain that income.  Since you have no offer letter to continue working for the same company after you move to the US, you have no evidence that you can maintain that income.  That's why your qualifying income should be entered as $0 in part 6, item 7 of the I-864.

 

Whatever the current income, you are required to enter (in part 6, item 24) the actual income figures reported in your federal tax filings for the 3 most recent tax years.  There is no calculation required here.  You simply copy the "Total Income" line in your tax return transcripts or 1040 forms.  If you filed using form 1040 EZ, copy the line for adjusted gross income instead.

 

You can use assets alone to qualify for sponsorship if you have liquid assets valued at least 3x the income threshold.  That's around $66,000 for a household of 2.

 

Note that it is the consul officer, not NVC, that has authority to decide whether you have sufficient assets to qualify or not.  Be aware that the CO may still require a joint sponsor even if you listed enough assets to meet the minimum requirement.  Typically, this is not something to worry about if your total assets are valued well above the minimum.  VJ members have reported success sponsoring based solely on their assets.