Hello my fiancé just received her annulment and we will be beginning the K-1 process as soon as she gets her court decree. My question is twofold concerning financial support.

A: I am self-employed and make enough money to show support but have many deductions so my net is below the requirements. Do they look at net or gross profits?

B: If it is net they look at, is it then possible to have a co-sponsor for the K-1? And if so does anyone have any info on this such as required forms needed? I’ve had a difficult time finding out anything on this in my research.

Thanks so much for the help.

One more question. Does a co-sponsor have to be a member of the household?


thanks again for any help you can provide.

.

wioombeen,

They look at your income, not your business' income. You are the sponsor, not your business.

Yodrak

They look at net income. Gross income means nothing if it is all eaten up by deductions. Yes, sponsor `can be from out of household.

edsperfect,

Point of clarification: they look at a person's gross income. Line 22 on the 1040. (Except, where applicable, in the case of foreign-earned income for which there can be a significant adjustment on line 21.)

Again, it's the person's income that is of interest, not the business' income.

Yodrak

Thanks for all the help, just wanted to clarify something.

Form 1040 line 21 is repairs and maintenance deductions and line 22 is for supplies deductions.

Line 5 is for gross profit and line 31 is for net profit or (loss).

Again thanks your answer has indeed helped.

wiombeen

wioombeen,

Form 1040 Line 21 is Other Income.

You are looking at Schedule C, Profit Or Loss From Business. I repeat once again, it's the personal income that is of interest not the business income.

Yodrak