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Support affidavit Gross income vs take home

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My gross income is well above the poverty line yet after everything I write off, my "total income" is below. I do write off a portion of my rent and am completely capable of providing for myself and my fiancee and live in a very expensive city. My tax return might look like otherwise.

Is this a problem for me/us? I am self employed and live within my means.

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I am in the same situation I pay myself through my business and the income listed on my W2 is above the amount needed but because of all of the business deductions on my schedule C the income is lower, on a monthly basis my business is profitable and my W2 shows what I take home but because of deduction and credit lines it appears that there was a loss which affects my AGI. I have read conflicting posts about them either using the actual gross income or the AGI from the tax return.

I plan on submitting my W2 along with the transcripts and bank statements personally and for the business to show that they both have funds in them enough to cover monthly expenses and to show how the business is profitable even though through tax records it appears not to be.

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I am in the same situation I pay myself through my business and the income listed on my W2 is above the amount needed but because of all of the business deductions on my schedule C the income is lower, on a monthly basis my business is profitable and my W2 shows what I take home but because of deduction and credit lines it appears that there was a loss which affects my AGI. I have read conflicting posts about them either using the actual gross income or the AGI from the tax return.

I plan on submitting my W2 along with the transcripts and bank statements personally and for the business to show that they both have funds in them enough to cover monthly expenses and to show how the business is profitable even though through tax records it appears not to be.

Same situation immigration is just going to see what's on your taxes their kinda heartless about it but that's reality they will tell you you will need a co sponsor more then likely so just a heads up. Edited by Morganalmonshid94

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Being self-employed myself, I assume by "gross income" you're referring to line 1, part I, of the Schedule C, Gross Receipts or Sales. And "total income" you mean line 31, Part II , Net Profit(or loss). All they care about is line 22 of the 1040, which is Total Income. Unfortunately, no matter how much you make gross it just doesn't count. Only by reducing expenses(which increases net profit) or raising income, other than business, will you meet the minimum poverty guidelines. So the answer to your question is yes, it's going to be a problem. I feel your pain on this issue, as I've spent many a time trying to explain your exact point to non self-employed people.

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Being self-employed myself, I assume by "gross income" you're referring to line 1, part I, of the Schedule C, Gross Receipts or Sales. And "total income" you mean line 31, Part II , Net Profit(or loss). All they care about is line 22 of the 1040, which is Total Income. Unfortunately, no matter how much you make gross it just doesn't count. Only by reducing expenses(which increases net profit) or raising income, other than business, will you meet the minimum poverty guidelines. So the answer to your question is yes, it's going to be a problem. I feel your pain on this issue, as I've spent many a time trying to explain your exact point to non self-employed people.

This is why I pay myself through my payroll company and take a w-2 at the end of the year, I know im being taxed on the money twice but when it comes to any kind of financing its much easier to show a w-2 then to try to explain that even though my tax returns show one thing the actual truth is different. Last year I had over 400k in deposits and 450k in expenditures 100k of which were financed for building repairs but still show as expenses making it look like a loss when if you take out that 100k and just show what was made on the loan payments then the business is profitable again but all of the details are not shown on tax returns, on account ledgers you can see it but not on the taxes.

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This is why I pay myself through my payroll company and take a w-2 at the end of the year, I know im being taxed on the money twice but when it comes to any kind of financing its much easier to show a w-2 then to try to explain that even though my tax returns show one thing the actual truth is different. Last year I had over 400k in deposits and 450k in expenditures 100k of which were financed for building repairs but still show as expenses making it look like a loss when if you take out that 100k and just show what was made on the loan payments then the business is profitable again but all of the details are not shown on tax returns, on account ledgers you can see it but not on the taxes.

As long as your W2 income is above the amount needed to meet the poverty guidelines after subtracting your business loss, then you're good. I'm not a tax accountant, but I know you can use the Carry Back or Carry Forward rules(Form 1045) to move a business loss if it's a problem in the current tax year.

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