I-864 For Self Employed

[Ravens 8]

I am self employed and have a difficult time finding proper information concerning filing the I-864.

Even on this forum I have seen many different things concerning self employed people.

I am hoping those who were self employed and have gone through the process can help others.

Currently I am concerned about the I-864 and getting straight answers for a self employed person is not easy.

I more then make enough money to sponsor however tax returns say a different thing due to business deductions.

My gross income is more then sufficient. But net income is pretty much at zero.

I am honest on my taxes however over the past few years alot more credit has been given.

For example I received $0.78 a mile driving credit.

In 2008 I got $22,000 credit for driving and in 2009 $20,000.

However I spent no where near that much on driving. Those credits alone would have qualified me for the I-864 but are

now showing as a lose.

I know many other self employed people are in same situation as I am. I have seen it over and over while doing a google search on forums.

I wanted to know if anyone who is self employed can help out who has been through it.

I file my taxes with turbotax. I do have copies in my computer. Are these good enough to send in?

Also has anyone received a RFE if sending in returns not coming from the IRS?

How did you handle the business expenses bringing you under the 125% poverty limit etc...

I have not seen really any direct answers anywhere for those who are self employed and maybe a thread can finally put together to help the many like myself get around the self employed ordeal.

[LotofPatience 65]

I am self employed and have a difficult time finding proper information concerning filing the I-864.

Even on this forum I have seen many different things concerning self employed people.

I am hoping those who were self employed and have gone through the process can help others.

Currently I am concerned about the I-864 and getting straight answers for a self employed person is not easy.

I more then make enough money to sponsor however tax returns say a different thing due to business deductions.

My gross income is more then sufficient. But net income is pretty much at zero.

I am honest on my taxes however over the past few years alot more credit has been given.

For example I received $0.78 a mile driving credit.

In 2008 I got $22,000 credit for driving and in 2009 $20,000.

However I spent no where near that much on driving. Those credits alone would have qualified me for the I-864 but are

now showing as a lose.

I know many other self employed people are in same situation as I am. I have seen it over and over while doing a google search on forums.

I wanted to know if anyone who is self employed can help out who has been through it.

I file my taxes with turbotax. I do have copies in my computer. Are these good enough to send in?

Also has anyone received a RFE if sending in returns not coming from the IRS?

How did you handle the business expenses bringing you under the 125% poverty limit etc...

I have not seen really any direct answers anywhere for those who are self employed and maybe a thread can finally put together to help the many like myself get around the self employed ordeal.

Whether you are self employed (1099 or S-Corp) or regular employed (W2), you file taxes using IRS form1040. So, you will have tax transcripts of the same. Get IRS tax transcripts for the last 3 years to file with AOS. You can use TOTAL/GROSS INCOME from the last year tax transcripts.

Loto

[Ravens 8]

Loto

From what I have seen they are using NET income for Self Employed people. This is where the problem is coming in because of business deductions.

I have seen forums where people were declined because of the NET income when gross was more then sufficient.

I actually saw a forum where a person was going to send in fake returns in order to get approved because they were that desperate. This is reason I think proper information should be given so people are not going to extremes.

[LotofPatience 65]

Loto

From what I have seen they are using NET income for Self Employed people. This is where the problem is coming in because of business deductions.

I have seen forums where people were declined because of the NET income when gross was more then sufficient.

I actually saw a forum where a person was going to send in fake returns in order to get approved because they were that desperate. This is reason I think proper information should be given so people are not going to extremes.

Ravens,

Let me do some more research on this matter and I will let you know. Meanwhile, you can post some links here where those are denied based on huge business deductions.

Loto

[Ravens 8]

Ravens,

Let me do some more research on this matter and I will let you know. Meanwhile, you can post some links here where those are denied based on huge business deductions.

Loto

Thanks for anything you can find.

I can only speak for my tax return but I see the key line of the tax return looked at is line 22.

The first part of my tax returns are all 0

Nothing is filed out until schedule C for business and loss. There my gross is very high. But on line 31 nothing is left after deductions. Because of this Line 22 above is 0.

[NVC FAN :( 18]

Ravens

I am self employed too, satelite contractor. i too use turbotax to do my taxes each year, so i understand what your going through.

You will use your AGI ajusted gross income. it should be listed on the summary sheet on turbo tax (the first page that prints)

as for the credits i know how easy it is to keep digging and diggin till you owe nothing! but this does not help your situation. i planned 2 years in advance prior to my fiancee coming to usa,. i basically made my AGI what i needed it to be and what the goverment required it to be. sure i paid a few dollars in.

I dont know if maybe you can ammend your taxes, or maybe you should postpone till feb of next year. then plan accordingly!

gl

[NVC FAN :( 18]

LINE 37 on form 1040 is the magic number!

[Ravens 8]

[quote name=NVC FAN ' timestamp='1281058212' post='4112468]

Ravens

I am self employed too, satelite contractor. i too use turbotax to do my taxes each year, so i understand what your going through.

You will use your AGI ajusted gross income. it should be listed on the summary sheet on turbo tax (the first page that prints)

as for the credits i know how easy it is to keep digging and diggin till you owe nothing! but this does not help your situation. i planned 2 years in advance prior to my fiancee coming to usa,. i basically made my AGI what i needed it to be and what the goverment required it to be. sure i paid a few dollars in.

I dont know if maybe you can ammend your taxes, or maybe you should postpone till feb of next year. then plan accordingly!

gl

NVC Fan

I have a feeling that is what I am going to have to do. Wait it out until next tax return and pay some bucks by holding back on deductions.

Were you able to send in one return? Would the ask for more because I will only have the one.

I heard ammending a tax return can be more of a nightmare with IRS then it is worth and possible audit.

[NVC FAN :( 18]

yes, from what i have learned for us self employed they want 3 years returns, i ordered 3 years of IRS transcripts, you can do it over the phone and they arrive in a week or so.

note that my 3rd return from 2007 i was just a bit under the line! i submited my ROth IRA account to make up the 1500 shortfall that year.

yea i could have took lots of miles on my van , but as i am doing my taxes i always watch that line 37 , ajust it as you need to get what is required.

As 3 years returns is advised , the most recent is the most important, i think next feb ??? ask someone for the date, USCIS will require tax returns for 2010, then do them and submit with 09 and 08.

also write your self a self employed letter, with your letterhead or make one. stating what you do ,clients,salary ect..

yea i would wait , rather than amend

gl

[LotofPatience 65]

NVC Fan

I have a feeling that is what I am going to have to do. Wait it out until next tax return and pay some bucks by holding back on deductions.

Were you able to send in one return? Would the ask for more because I will only have the one.

I heard ammending a tax return can be more of a nightmare with IRS then it is worth and possible audit.

Ravens and NVC Fan,

It is really not clear if you can use tax transcripts or go for personal income in the case of self-employed people.

As you guys suggested, it is better to pay some taxes (by not being too greedy at least for 1 year :-)) for the year 2010, show some personal income and submit it with AOS.

Another option is - Your assets (like home, bank balance etc.) which is 3 times (if sponsor is USC) of the 125% of the poverty line of your household size.

Loto

[Ravens 8]

OK quick question for anyone who may know the answer.

If I use my next tax return and avoid deductions to meet requirements. Since I want to do this fast as soon as new year hits meaning I will send in photocopies instead of transcripts to keep from the additional wait and send in my bank statements (3 years worth) as well as (I am ebay power seller for living) all my paypal statements (3 years worth) does anyone see this as a problem or a potential RFE?

I am trying to avoid any more hassels.

[sajaan 0]

hey friends i have just sent my i864 for my sister family of seven and i had to do it as an self-employee and i used AGI $4000.whatever was on my transcripe for 2009. but for my current income i wrote a self-employee letter and i put $25000 as a my current income . u guys think it is going to be a problem. i also had two more co-sponsers so that makes 3 of us . sponsering 7 ppl. i put all ppl in my i864. and then 1st co-sponser put 5ppl with $45000 with one depent. and 2nd cosponser put 2 with $38000 with 3 depents. i hope everything goes well . plz let me know if i am in good shap thanks

[Anh map 2,098]

Typically Line 22, not line 37, on the form 1040 is the number evaluated for self employed persons.

OP, you could go back and amend your most recent (2009) 1040 if that will get the number within range. Of course you may have additional taxes to pay with your higher income.

[LotofPatience 65]

Typically Line 22, not line 37, on the form 1040 is the number evaluated for self employed persons.

OP, you could go back and amend your most recent (2009) 1040 if that will get the number within range. Of course you may have additional taxes to pay with your higher income.

This makes more sense to me for self employed persons, since schedule C (profit or loss from the business), Schedule E (Supplemental income and Loss for S-Corp etc.), Schedule K1 (partnerships) etc. are already accounted before computing the total income.

So, if a self-employed person is "too aggressive" in terms of business deductions, their total "personal income" will be very low.

So, I would also recommend to amend the last year tax or wait for the current year tax filing, to make your "personal income" above the required amount mandated by the self employed petitioner. (Side effect: as you told, just donate some money to IRS for your beloved :-))

Anh map, Would you still think Line 22 (Total Income) is more important than Line 37 (AGI)? For example, suppose the self employed person (any any other person) is paying alimony to the ex-spouse, then the payor's income is further reduced and hence the AGI is more important to AOS review. (I started feeling that NVC reviews the income based on AGI for ANY persons)

Technically, regular employed person in W2 and self employed person in 1099/S-Corp etc. are NO different in terms of AOS point of view when Adjusted Gross Income (AGI) is considered to be evaluated. For W2 person, total income and AGI would be somewhat similar since the deductions are not many. Whereas, for self employed person, AGI could be "dangerously" low, if he/she is "most aggressive" in business deductions.

Loto

[LotofPatience 65]

Bottom Line: Your (any person if regular or self employed) AGI, that is the addition of all source of income and the subtraction of all kind of expenses (business expense, alimony etc.) are the key figure for your Total Income. And this number is before you claim your personal exemptions, standard/itemized deductions and your actual tax (Federal and State(s)). However, AGI is already accounted (that means subtracted) your Social Security and Medicare taxes.

This is the detailed analysis I can provide you at this point of time :-)

Loto