i work in iraq and my income got adjusted

[kh1982 0]

I am trying to prepare for the I134 do I use my adjusted income or do I use my actual income my income well working in Iraq is tax free that is why on my taxes I filed it says I only pay taxes on 7,000 but my income before adjusted is 87,500 for the year PLEASE HELP also if there is any more US government contractors out there that is going throw this process and you have some information

[KimandRuss 0]

I don't know how 'tax free' works.

I know that I am self employed and could only use the net income from my business (located on schedule C) Line 22 of the 1040 sums up all sources of income. This is the number that goes on the affidavit of support. I'm not sure how that works for you, though.

You should probably contact the Embassy and ask them directly what you can use.

good luck.

[rebeccajo 14]

Wow, this is a really interesting question.

Do contractors in this scenario receive a W-2 or do they receive another document?

[pushbrk 13,639]

I am trying to prepare for the I134 do I use my adjusted income or do I use my actual income my income well working in Iraq is tax free that is why on my taxes I filed it says I only pay taxes on 7,000 but my income before adjusted is 87,500 for the year PLEASE HELP also if there is any more US government contractors out there that is going throw this process and you have some information

An employee uses their gross employment income. The affidavit doesn't ask about how much of the income was taxable. However, the affidavit's income question is in the present tense, not the past tense. They want your current income, not what you made last year unless they are the same.

They sometimes don't have much choice on self-employed people but to accept what their most recent tax return shows.

[Sylvia_n_Joseph 3]

Your W2 should only reflect your US income which is taxable, Your employers letter will state your whole income and it would be best if they state that you are stationed out of country so you can easily explain the difference.

[rebeccajo 14]

Here's a discussion about non-taxable income.

It looks like the answer might depend on how the OP filed his taxes. Which to a large part would depend on how his employer reported his income.

http://answers.yahoo.com/question/index?qi...06115630AAGOnug

Edited March 1, 2009 by rebeccajo

[Gary and Alla 3,696]

Wow, this is a really interesting question.

Do contractors in this scenario receive a W-2 or do they receive another document?

I thought I answered this earlier but don't see the answer. OMG it was early. There are two ways this can be done. He receives a 1099 and claims it as income on line 22, then adjusts it out as non-taxable, in which case there is nothing to do, it will show on his gross income and be counted and he has a 1099 to attach.

Second way, he receives nothing as the income is tax exempt and is not shown as income on the 1040 form. Other forms of tax exempt income include child support and workman's compensation. Both of which are counted as income if you have an award letter, court order or some other document supporting the income and check stubs. If this is the case, you need a letter (or a copy of your contract) from your employer stating your income and check stubs or deposit records. When I worked in Ukraine my income was direct deposited to my account in the USA and I have bank records to show this and could show this with a corresponding employemnt letter/contract.

I did not have this situation exactly as I had completed my contract in Ukraine before we got engaged. I would have a question as to if they would accept a contract of a limited time as income. I do not know, just a thought. If you say here is my income and it is a 2 year contract with 6 months left on it, they could say "And what will you do after this?" I don't know.