form i-864/stocks Q

[breadlover408 24]

Hi everyone,

Sorry I have been asking a lot of questions about the tax stuff for form i-864.

So I was going through my fiance's (petitioner) tax forms and all that, and saw that he has a supplement PDF from his work, about stocks.

 

The paper there states: 
"This document provides you with additional information about your 2018 Stock Plan Transactions that is not reported to the IRS on your Form 1099-B."

Originally, as suggested by members, I was going to submit IRS tax transcripts only, but should I be going through the supplying W2/1099 route instead, and provide this PDF. of stocks too?
My fiance earns over the 125% poverty guideline, but I am not aware enough of whether the stocks amount affects tax and all that.  Does it have anything to do with the i-864 tax part or is it just a separate thing?

 

P.s. - On a side note, the i-86s PDF instructions states to submit a tax transcript OR W2/1099s BUT, on their website under "checklist", it states:

 

Quote

For ALL sponsors: 

A copy of your individual federal income tax return, including W-2s for the most recent tax year, or a statement and/or evidence describing why you were not required to file. Also include a copy of every Form 1099, schedule, and any other evidence of reported income. You may submit this information for the most recent three tax years, pay stubs from the most recent six months, and/or a letter from your employer if you believe any of these items will help you qualify. 

 

...and now I'm paranoid and not sure which one to follow...

Ack, thank you for any help again. I promised myself I will go eat a nice burger when all of this is done 😭

Edited February 9, 2022 by breadlover408
typo

[Mike E 11,739]

The W-2 is already showing income  from the stock plan. Therefore so is the tax transcript. 
 

The 1099-B supplement tells the worker what the real cost basis is for shares sold from a stock plan, as Congress has decided that the actual 1099-B must report a low (therefore false) cost basis that nominally gives the appearance of inflated capital gains.  The worker is expected and permitted to corrrct the tax basis to report lower (and actual) capital gains, and thus lower taxes.  
 

So for example let’s say the worker in 2020 had $100K of RSUs vest. $100K of gross income would be reported on the W-2 for this.  Any taxes withheld from the vesting would also be reported.  Let’s say after vesting the worker had 750 shares at $100 each (because 250 shares were sold to pay taxes).  The worker immediately sells the shares for say $101 a share.  
 

The broker reports proceeds of 750 * 101 = $75,750. And a cost basis of 0.  So now it looks like a capitals gain of $75,750. 
 

The 1099-B supplement instead tells the worker that the actual cost basis per share was $100, and instead the total cost basis was  $75,000. The net capital gain (short term because shares held for less than year) was $750.   This supplement is not filed with the IRS. It is (by law) not reported to the IRS because Congress desires to confuse workers and cause them to over pay their taxes.  
 

So the tax transcript, if the tax return is correctly filled out, shows $750 of this investment income and not $75,750. However significant numbers of workers and CPAs get this wrong.  Every year at work this question came up and one of the joys of retirement is that  I don’t have to answer these questions at work.  
 

I guess fewer than 1 in 10,000 USCIS officers understand and single word of what I just wrote.  Your course of proposed action, including the 1099-B supplement runs a high risk of clouding the issue and either causing  USCIS to inflate the petitioner’s income or causing USCIS to think the petitioner owes taxes.  

Edited February 9, 2022 by Mike E