Gross income or Adjusted gross income?

[millheir 0]

hi fellows, please i need some urgent help. i am filling the form 864 and we having trouble with weather to put on part 6 #22 the total income or adjusted gross income? pls help!!!

[chimcham 18]

hi fellows, please i need some urgent help. i am filling the form 864 and we having trouble with weather to put on part 6 #22 the total income or adjusted gross income? pls help!!!

I think it says adjusted gross income.

[Sveta & Ron 23]

gross income

[chimcham 18]

gross income

I think we are both right. In the step by step guide for the 1-864 on the uscis website it states:

For purposes of this affidavit, the line for gross (total) income on IRS Forms 1040 and 1040A will be considered when determining income. For persons filing IRS Form 1040 EZ, the line for adjusted gross income will be considered.

But I will let Harpa answer this one...she knows all!

[millheir 0]

I think we are both right. In the step by step guide for the 1-864 on the uscis website it states:

For purposes of this affidavit, the line for gross (total) income on IRS Forms 1040 and 1040A will be considered when determining income. For persons filing IRS Form 1040 EZ, the line for adjusted gross income will be considered.

But I will let Harpa answer this one...she knows all!

ok, well i guess i will leave that section of the form open till Harpa or someone else answers then. Thanks for the attempt guys

[Nich-Nick 3,353]

hi fellows, please i need some urgent help. i am filling the form 864 and we having trouble with weather to put on part 6 #22 the total income or adjusted gross income? pls help!!!

People file different basic tax forms based on their filing status and what kind of money they earn.

1040- Line 22 Total income

1040A- Line 15 Total income

1040EZ- Line 4 Adjusted gross income

[millheir 0]

But what seems to confuse me about our co-sponsor's tax returns is that, he has both form 1040 and SCHEDULE C(1040) Profit or Loss from Business as part of his Federal Tax Returns. Now he (our co-sponsor) said that we need to use the amount on the Total Gross Receipts Total on the SCHEDULE C form # 1d as the Annual Income on the i864, is this right?

[Nich-Nick 3,353]

But what seems to confuse me about our co-sponsor's tax returns is that, he has both form 1040 and SCHEDULE C(1040) Profit or Loss from Business as part of his Federal Tax Returns. Now he (our co-sponsor) said that we need to use the amount on the Total Gross Receipts Total on the SCHEDULE C form # 1d as the Annual Income on the i864, is this right?

No, the I-864 instructions are specific. It comes from the 1040 in his case.

Schedule C is where self employed report the money they took in for their business. Then there are all kinds of deductions and write-offs for expenses. Most try to find all the legal deductions they can to reduce that income or even show a loss for the purpose of lowering their self employment tax and personal income tax. He could start with $50,000 in receipts from that business then write off equipment, supplies, rent, vehicles, mileage driven and end up reducing his income to only a $10,000 profit shown on Schedule C. That $10k plugs into his Income tax form 1040 on Line 12-Business income (or loss). His income tax is levied against his profit shown on line 12 and not all the money his business took in. Business owners do everything they can to show they earned very little money on their 1040 to pay less income tax. But the USCIS goes by the money shown on his 1040 and not Schedule C.

Edited March 24, 2012 by Nich-Nick

[Harpa Timsah 13,258]

Yes, sometimes self-employed people have problems with this, because they do all it takes to make it appear that they made no money. Sometimes self-employed people have redone their taxes for this purpose to show that they made more income. Probably a co-sponsor won't want to do that if their income on 1040 shows too little.

[millheir 0]

Ok, it's all clear to me now, thx guys. Another thing, our co-sponsor's most recent 2years tax returns are as I mentioned above, so am assuming he was self-employed right? But he is now employed not self-employed in his current job which he started January 2012.

So when he fills the form i864, should he fill as employed or self-employed?

[Nich-Nick 3,353]

So when he fills the form i864, should he fill as employed or self-employed?

Employed.

And his current income is what his current salary is, multiplied out to a year. So if he gets a monthly paycheck, the gross before withholdings times 12. Bi-weekly paycheck is x 26. Because that is not on a tax return, he will prove the income with a letter from his new employer and perhaps as many paycheck slips (photocopies) as he has since January.

[Yes he was self employed if he had a Sched C, but a person can be employed and have a business on the side. His business losses could take away from his regular job income to lower his total income on a tax return]

Edited March 25, 2012 by Nich-Nick

[millheir 0]

Ok thanks guy for the time u take to answer my questions.

Is form i131 a most to file when adjusting status from student to green card?

[SOflaherty 40]

Employed.

And his current income is what his current salary is, multiplied out to a year. So if he gets a monthly paycheck, the gross before withholdings times 12. Bi-weekly paycheck is x 26. Because that is not on a tax return, he will prove the income with a letter from his new employer and perhaps as many paycheck slips (photocopies) as he has since January.

[Yes he was self employed if he had a Sched C, but a person can be employed and have a business on the side. His business losses could take away from his regular job income to lower his total income on a tax return]

I think the answer would entirely depend then on whether he claimed a loss or a profit. If he didn't do a ton of deductions he should show a profit, and it would be to his benefit to check off both and use his total combined income. That's how we are doing ours, because the pay from my full-time job *just* missed the income cutoff. I didn't claim any deductions at all for my part time business, just so it would help us come time to file. I paid a lot more taxes on that income as a result, but on the plus side my income shows 10k higher than it otherwise would.

[millheir 0]

I think the answer would entirely depend then on whether he claimed a loss or a profit. If he didn't do a ton of deductions he should show a profit, and it would be to his benefit to check off both and use his total combined income. That's how we are doing ours, because the pay from my full-time job *just* missed the income cutoff. I didn't claim any deductions at all for my part time business, just so it would help us come time to file. I paid a lot more taxes on that income as a result, but on the plus side my income shows 10k higher than it otherwise would.

Is form i131 a most to file when adjusting status from student to green card?

And also, i am current filling form i130, but got stuck with #22 (i130) its asking for the USCIS office we adjusting status in. We leave in MD, do we put an office located in Maryland, of they refering to where we will be sending the package?

thanks

[Harpa Timsah 13,258]

I-131 is not a "must" but if she wants to travel while the GC is pending, then you will need it. We need more information about her status to let you know if it is safe to use, but just know that once you file the AOS she cannot leave the country, or her AOS will be considered abandoned.

For your other question, you can put your local office or the Chicago lockbox. No one knows the right answer and both ways have been accepted. It seems like an anachronistic question to me.