I-864 For Self Employed

[John & Marie 0]

Well looking at this part of the forum here on self-employed sounds like I am not the only one with questions on which line from the 1040 and deduction work sheet to use. I just took my amount that I made this last year and put that in the amount made on the I-864 and sent in the two IRS transcripts for the previous 2 years.

Edited August 25, 2010 by John & Marie

[BigSigh 12]

What is the final verdict?

Say your Schedule C says: $10 million but...

Your line 22 says $50

does that mean you can't sponsor then?

[LotofPatience 65]

What is the final verdict?

Say your Schedule C says: $10 million but...

Your line 22 says $50

does that mean you can't sponsor then?

Yes Teya. As per I-864 manual, they are below poverty line

Loto

[BigSigh 12]

Thanks Loto.

[bobby_kvisa 7]

Ok I feel like joining this discussion as well.

Am I considered self-employed?

I am currently a W-2 employee

In previous years (2007,2008) I had a schedule C for a hobby business. In 2009, I abandoned this hobby and have no Schedule C in 2009.

In 2009 I had Schedule E for my Rental Real Estate Property and reported a loss due to deductions and expenses.

In 2009 I had Schedule D as I reported my activity in stock market investments.

Overall I reported all the income on the tax return. This is year I owed the IRS primarily due to the Schedule D.

Edited September 10, 2010 by bobby_kvisa

[BigSigh 12]

If line 22 of your 1040 shows less than the required amount for the 125% poverty guidelines for your household, looks as if you will need a co-sponsor or to add some assets to your proof of income.

[LotofPatience 65]

Ok I feel like joining this discussion as well.

Am I considered self-employed?

I am currently a W-2 employee

In previous years (2007,2008) I had a schedule C for a hobby business. In 2009, I abandoned this hobby and have no Schedule C in 2009.

In 2009 I had Schedule E for my Rental Real Estate Property and reported a loss due to deductions and expenses.

In 2009 I had Schedule D as I reported my activity in stock market investments.

Overall I reported all the income on the tax return. This is year I owed the IRS primarily due to the Schedule D.

Teya is correct

Bobby, business expenses cannot be deducted for 'hobby' business. You have to check the box in schedule C that all your investment is at risk and prove material participation. Anyway, that's all cat & mouse game.

If you used IRS for 1040 in 2007, 08 and 09, check line 22 to see amount is big enough. I hope yes. Because I have also done more or less similar activities including some monkey business and real business along with the 'bread and butter' job.

Loto

[bobby_kvisa 7]

Line 22 is higher on the 1040 for each of the 3 years.

For 2008 all investment was at risk and I materially participated. I have to check 2007 tonight, but I am pretty sure it is the same.

But my real question is that even though I had Schedule C in 2007 & 2008, it should not matter because on 2009 there was no Schedule C. And also now I am only a W-2. Is this correct ?

Also what type examination do they do of Schedule E - for Rental Real Estate, etc ?

[LotofPatience 65]

Line 22 is higher on the 1040 for each of the 3 years.

For 2008 all investment was at risk and I materially participated. I have to check 2007 tonight, but I am pretty sure it is the same.

But my real question is that even though I had Schedule C in 2007 & 2008, it should not matter because on 2009 there was no Schedule C. And also now I am only a W-2. Is this correct ?

Also what type examination do they do of Schedule E - for Rental Real Estate, etc ?

Bobby, all schedules are ok in the eyes of USCIS as long as Line 22 of 1040 is above the poverty line. In your case, you are all set.

Line 22 amount is derived after the major schedules that involve business, rental, partnership etc. Here is simple example:

Line 7: You W2 income: $200,000

Line 8: Interest: $100

Line 9: Dividend: $500

Line 10: State refund (due to prior year itemized deduction): $1000

Line 12: Schedule C: -$100,000 (say business in loss)

Line 13: Schedule D: -$3,000 (MFJ, max $3000 capital loss allowed)

Line 17: Schedule E: $5,000

Line 22: Total Income: $103,600 --> This is called Personal Income (for 1040, this is needed)

All the above is income part.

Next is the deduction part to derive Adjusted Gross Income (AGI). Only for 1040EZ considers AGI. For EZ guys there are no schedules.

Loto

[garmar 0]

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.

I have been told it is line 37 not line 22 that is used to evaluate income. There seems to be varying opinions on this. Is this something you heard from other bloggers or did you get that information from the consulate?

[pushbrk 12,092]

I have been told it is line 37 not line 22 that is used to evaluate income. There seems to be varying opinions on this. Is this something you heard from other bloggers or did you get that information from the consulate?

On the 1040 it's line 22, total income. On a 1040EZ it would be "adjusted gross income". 1040, line 37 is adjusted gross income. For some returns, the numbers on line 22 and line 37 are the same.

From the I-864 itself.

My total income (adjusted gross income on IRS Form 1040EZ) as reported on myFederal tax returns for the most recent three years was:

Note the parenthesis. Adjusted gross income is used only when the taxpayer(s) used the 1040EZ.

Aside, Here you are saying "I have been told" (incorrectly) without stating a source but you come to us wanting a source. The source is the I-864 itself. It's critical that you carefully study the form itself and the instructions that come with it. Your question indicates you haven't yet. Doing so, will be critical to your ultimate success.