Negative Income on Form 1040

[Villanelle 4,121]

Hmm, it seems the bit about padding the income rubbed you the wrong way? Sometimes I use words that are unintentionally too blunt or literal because I accept most at face value so I dunno (?) but feel free to insert whatever other appropriate verb of your choosing. If 'padding' is too harsh then its not reflecting it accurately- because a loss can not simply vanish and not be reflected anywhere. That is not an accurate representation of the true stability and profit/loss of the business. I understand your point of- it was not part of the 14 numbers and they are only asking for 14.

Well yeah, now... But come AOS time you do realize that 3 years of returns are necessary? If there was a loss in 13 or 12 that caused this carry over into 14 it will still be an issue.

USCIS and the COs/ NVC etc etc only ask for tax returns (in general) as the main form of proof of income because it is the easiest way to verify income. Yes, as you stated, they are not CPAs. They assume everyone turns in a return with the most deductions they can because its to their advantage but not all business owners do. Some leave off deductions and expenses from their taxes (and roll over losses) because it makes their bottom line look better) and helps them get loans and other benefits as a lot of places have a we only go by the number 22 on tax forms and dont dig any deeper mindset.

But cutting the crud- we both know line 22 is not accurate if you not reporting everything AND while the embassy level may allow through a corrected returns for the K visa showing good income on line 22 and not probe further- come AOS time- there may be further probing.

What is the plan then?

You mentioned in the original post- carry over loss. Im not a CPA and in no way claiming to be a tax professional. But I know a bit about sched Cs and the what nots and carry over losses are not really a do it yourself or un-do-it yourself (lol) type of thing. There are very specific rules to qualify to use it and to 'undo' it can and will impact future returns. But if you are saying it will total out to 1300 bucks--- well I hope that figure was calculated by a tax professional and not your friend and the tax implications were reviewed by a tax professional. Because tax codes are quite complex.

Since you are posting this for a 3rd party - the info is going to be dilluted, but carry over loss generally implies it had been reported on a previous years return and wiped out that years income totally and there was loss left over that you "carried into" next year. This would mean potentially 13s returns are ZEROS.

How will that work for AOS?

Unless he is of the mindset to just get his girl over here and not file AOS?

You really would have to provide the specific numbers (or close estimations) like 24k for 2014 for the last 3 tax years for better advice.../

[VOL 425]

And there is a chance the CO will not ask for any tax information.

[Darnell 8,478]

AGI was what, after the COL for 2014?

[CrazyAboutMag 0]

Hmm, it seems the bit about padding the income rubbed you the wrong way? Sometimes I use words that are unintentionally too blunt or literal because I accept most at face value so I dunno (?) but feel free to insert whatever other appropriate verb of your choosing. If 'padding' is too harsh then its not reflecting it accurately- because a loss can not simply vanish and not be reflected anywhere. That is not an accurate representation of the true stability and profit/loss of the business. I understand your point of- it was not part of the 14 numbers and they are only asking for 14.

Well yeah, now... But come AOS time you do realize that 3 years of returns are necessary? If there was a loss in 13 or 12 that caused this carry over into 14 it will still be an issue.

USCIS and the COs/ NVC etc etc only ask for tax returns (in general) as the main form of proof of income because it is the easiest way to verify income. Yes, as you stated, they are not CPAs. They assume everyone turns in a return with the most deductions they can because its to their advantage but not all business owners do. Some leave off deductions and expenses from their taxes (and roll over losses) because it makes their bottom line look better) and helps them get loans and other benefits as a lot of places have a we only go by the number 22 on tax forms and dont dig any deeper mindset.

But cutting the crud- we both know line 22 is not accurate if you not reporting everything AND while the embassy level may allow through a corrected returns for the K visa showing good income on line 22 and not probe further- come AOS time- there may be further probing.

What is the plan then?

You mentioned in the original post- carry over loss. Im not a CPA and in no way claiming to be a tax professional. But I know a bit about sched Cs and the what nots and carry over losses are not really a do it yourself or un-do-it yourself (lol) type of thing. There are very specific rules to qualify to use it and to 'undo' it can and will impact future returns. But if you are saying it will total out to 1300 bucks--- well I hope that figure was calculated by a tax professional and not your friend and the tax implications were reviewed by a tax professional. Because tax codes are quite complex.

Since you are posting this for a 3rd party - the info is going to be dilluted, but carry over loss generally implies it had been reported on a previous years return and wiped out that years income totally and there was loss left over that you "carried into" next year. This would mean potentially 13s returns are ZEROS.

How will that work for AOS?

Unless he is of the mindset to just get his girl over here and not file AOS?

You really would have to provide the specific numbers (or close estimations) like 24k for 2014 for the last 3 tax years for better advice.../

It's hard when you are just reading a response because you do not see the other person's emotion. No, it didn't rub me the wrong way. The capslock was meant to use as an emphasis. You were saying that he wasn't claiming deductions to make his income look good, however, that is not the case. Yes, I know that adjustment of status will require the last three years of tax returns. I have personally seen adjustment of status being approved (without problems) with just the most recent year's income meeting the income requirement. No, the information I am giving is not diluted, as I have with me his 2014 returns. If you google what the tax is for a taxable income of $12K for a single person, you will see that $1300 is accurate. If he does get it amended, his tax man (a professional) will do it for him. And yes his tax man verified that $1300 tax on top of what he's paying now is correct.

Edited June 15, 2015 by CrazyAboutMag

[Villanelle 4,121]

Well you seem to have it under control then (?)Not sure if you just wanted confirmation on what you intend to do then? You can do it. As everyone has stated results and experiences vary.

FYI theres an active thread currently from a well versed in immigration matters member who also utilizes sched C and has 3 years of returns all above poverty line that just got an RFE for income. So results vary/

[CrazyAboutMag 0]

And there is a chance the CO will not ask for any tax information.

Was this a personal experience? I have never heard of the embassy not asking for tax returns unless other proof of income was submitted.

[CrazyAboutMag 0]

Well you seem to have it under control then (?)Not sure if you just wanted confirmation on what you intend to do then? You can do it. As everyone has stated results and experiences vary.

FYI theres an active thread currently from a well versed in immigration matters member who also utilizes sched C and has 3 years of returns all above poverty line that just got an RFE for income. So results vary/

I posted this question hoping I would hear from someone who had a similar experience. We were hoping that he could just turn in his 2014 tax returns as it is with a notarized letter from his CPA explaining his income. I have searched here and in other sites. I keep hearing what I already know: "The embassy will look at line 22."

[CrazyAboutMag 0]

AGI was what, after the COL for 2014?

Not sure what COL stands for but his adjusted gross income, line 37, meets the income requirement for his household size.

Edited June 15, 2015 by CrazyAboutMag

[Villanelle 4,121]

VOL has had experience with this embassy.

The best answer you are going to get is "experiences vary". This is the truth because the policy states for them to look at line 22 and use their discretion. All we can do and anyone else on any other forum is evaluate the situation and give you our best guess of how they will evaluate it.

Some people have reported not having been asked for the aff of support in the interview because it was sent in previously and the CO just didnt review it at the time in person. Some people are demanded to present it then and have it reviewed line by line in interrogation style. Results vary and the CO has the final word on whether to approve it or issue the temp denial for her to come back with a co-sponsor or proof of more income.

Again results vary and I believe its been reported that embassy does not allow co-sponsors. She may be allowed to return with proof of further income if its denied. I do not know. If it is at all possible for him to be there to explain any income issues, it would be better. (If youre sending in the tax return with the loss on it and want it explained) If you are sending in the amended return, then for this and this alone, looking at a one year return with sufficient income and a schedule C--- well the CO can ask for previous years as its self employed income (different rules apply when its self employed vs company income) or they can let it through. If they ask for previous years and previous years do not show profit, it may be denied. Its their discretion.

Moving on to the AOS process I would urge you to do more research as previously stated different rules apply for self employment income, you get into things like the stability of income, 3 years of returns are needed- Im worried about a previous years loss showing and being held against him. But this is a future concern and not the present.

Not sure what COL stands for but his adjusted gross income, line 37, meets the income requirement for his household size.

carry over loss