Poverty Guidelines ??????

[MrEdd 0]

Hello,

Can anybody tell me if the guidelines are based on gross wages or adjusted wages.(net)

When i filed the AOS i sent last three years tax returns. I am a contract driver and my wages were

31,000 for year 2003, 38,500 for 2004 and 46,500 for 2005, well above the guideline for 4 people(25,500).

And i recieved a RFE it said they couldnt understand if i met the poverty level and asked me to send more info. Now after i took all of my deductions on my taxes (mileage) my taxable income is -0- dollars. CAN ANYBODY HELP ME

[camaleon 0]

U should use the adjusted income.

c u later.

[sparkofcreation 0]

Gross.

[Not Available 0]

gross wages

[JanaknJanet 0]

MrEd...

Back during tax time there was a thread concerning self-employed income and what is derived for the numbers in use..

this is what i posted. if you wish look it up.. the thread was:

"Gross" income? --still unclear (form 134), I'm still uneasy on this question

Being self-employed is sometimes a differnt situation that alot of people do not have to deal with.. . It is line 22 that they use.. in your situation you had deduction that lowered your gross amount to -0-... that is the potential problem.

Being a ind.contractor it is I assume treated the same way as self-employed.. you file.. you pay etc.. you normally dont get your employers tax W2's possibly the contractor statement but you are inevitabally responsible for all charges and taxing..

hope that reading the post from back in April will help clear things up .

Due to you having those deductions.. lowering your tax liability to -0- also causing you to have shown -0- income. .. grrr. catch 22.. .

Now I am not a Tax accountant nor a attorney.. but could it be at all possible to file a ammended return .. not using the loss that caused your RFE/denial?

wouldnt it be easier to just pay a bit in taxes by way of not claiming a deduction? therefore it will show you have some income on line 22.? it is a thought.. but I have never done a ammended tax filing.. so not quite sure.. I think you may be possibly in the position of having to find a co-sponser.. aughh. best of luck. ok .

ok ok .. for example sake..

I too am self employed..

being self employed I understand about the frustrations of this.

number wise..

ok I have one dependant daughter.. so for me daughter and fiancee. would = 3

because I am thinking of long term AOS I wish to use the 100% number. not the 125% = $20773

I know it confuses some but why should i run into problems then. . and sail tru K-1 with 125%

ok.. Schedule C. = gross income 31820

business expenses 11047

NET PROFIT 20773

LINE 12 Businesss Income 20773

Line 22 Total Income 20773

Line 37 Adjusted gross Income 19305 which is total income - one half self-employment income

For K-1 and AOS they look at TOTAL INCOME... not adjusted.. it is used as line 22 from 1040

I am normally able to use much more deductions on my taxes for business expenses... usually lowering my income dramatically to less than 10K. but with being in the process of sponsering.. I have to make sure i have enought shown.

Someone pointed out to me... even if you have to "pay" some taxes.. he can still be sponsered by you.. plus.. You will be doing this hopefully within 3 years.. therefore.. after.. AOS.. .. worse case scinario and you wished to get your money you paid in taxes... file a amended return.. you have 3 years to do so ..

then you can refile.. with the business deductions.. .. ..

Personally I wont do so ... I feel.. not only will this show i made enough to sponser him.. but.. hey .. it increases my income I made for social security.. .. they go on how much you made for your retirement amount... and if i always make it so i claim as little as possible. in order to pay less or none in taxes.. then. when it comes time for me to retire and get social security.. All the years of my hard work.. will give me little to nothing as a social security benefit .... catch 22?

Just remember.. for self employed.. assess what is on the schedule C for you deductions.. limit what you have after all it is to our benefit to claim or not to claim a deduction..

Good Luck.. .

"The income they count is the amount on Line 12 of your 1040. They will not count your gross receipts before your self-employment taxes and business deductions are taken out... "

self employment taxes.. are listed on Line 58 as other taxes.. and YES YOUR INCOME IS COUNTED BEFORE THAT... .. Income is only counted AFTER BUSINESS DEDUCTIONS ... not including your SE TAX..

AGI is with the deduction of 1/2 SE tax.. but we dont use AGI.. we use line 22 TOTAL INCOME..

Hope this helps

[Not Available 0]

oh i'm sorry, i didnt realize you were self employed.

[camaleon 0]