Selfemployed income question I-134

[Ebunoluwa 6,136]

I-134 income question :

Section 7

I derive an annual income of _________

On my tax return is the gross income, the adjusted gross income (line 37) and the Business income (profit/loss) (line 22).

There is no place to enter an annuity/pension.

My question is do I add the annuity/pension to the annual income from my business ?

Which do they want, gross, adjusted gross line 37 or business income line 22.

I have always read here on VJ it is the 'adjusted gross income line 22' but that is actually line 37.

I will attach a separate sheet to break down the different incomes but want to know what to enter on the form itself.

Can anyone provide a link with detailed instructions ?

Thank you.

[belinda63 3,052]

I don't know the line number but it is the income after all the business deductions. It is usually a lot less than gross income.

[Ebunoluwa 6,136]

Yes, it is less but line 22 is even less than line 37. So confusing. They will have all the details on my tax return but I just want to enter

the correct amount on the form which does not state whether they want the gross amount according to my yearly intake income tally in my

own books, the adjusted gross or what they call the business profit/loss on the tax return. All are different amounts. Sigh !

[KayDeeCee 4,896]

It is Total Income, line 22 of the 1040 for the income, not AGI that is line 37. If you have self-employment income plus an annuity/pension, then add those 2 together and put the total amount for your current income. Provide proof of the pension income, and you can write it on the form somewhere and/or use an attachment sheet to explain all your income.

The I-134 does not have detailed instructions, so looking at the I-864 guidelines is better. The I-864 instructions and form do not specify the income line, only that you use Total Income, line 22(or AGI, line 37 for the 1040EZ) when listing your income from the last 3 years of taxes.

The Adjudicator’s Field Manual does define income as line 22 though. > http://www.uscis.gov/iframe/ilink/docView/AFM/HTML/AFM/0-0-0-1/0-0-0-2872/0-0-0-3055.html

(D) Federal Tax Return(s).

No matter whether a sponsor submits Form I-864 or I-864EZ, the sponsor must provide a copy or an IRS-generated transcript of the sponsor’s Federal income tax return for the sponsor’s most recent tax year. Each Federal tax return must include all the supplements and attachments that were sent to the IRS with the tax return. For purposes of demonstrating means to maintain income, the determining income amount is the income, before deductions, on the sponsor’s income tax return. In other words, income means an individual's total income (adjusted gross income for those who file IRS Form 1040EZ) for purposes of the individual's U.S. Federal income tax liability, including a joint income tax return (e.g., line 22 on the 2005 IRS Form 1040, line 15 on the 2005 IRS Form 1040-A, or line 4 on the 2005 IRS Form 1040EZ or the corresponding line on any future revision of these IRS Forms).

[Ebunoluwa 6,136]

It is Total Income, line 22 of the 1040 for the income, not AGI that is line 37. If you have self-employment income plus an annuity/pension, then add those 2 together and put the total amount for your current income. Provide proof of the pension income, and you can write it on the form somewhere and/or use an attachment sheet to explain all your income.

The I-134 does not have detailed instructions, so looking at the I-864 guidelines is better. The I-864 instructions and form do not specify the income line, only that you use Total Income, line 22(or AGI, line 37 for the 1040EZ) when listing your income from the last 3 years of taxes.

The Adjudicator’s Field Manual does define income as line 22 though. > http://www.uscis.gov/iframe/ilink/docView/AFM/HTML/AFM/0-0-0-1/0-0-0-2872/0-0-0-3055.html

Thank you for the link and explanation. I am still confused as to why it says

" For purposes of demonstrating means to maintain income, the determining income amount is the income, before deductions, on the sponsor’s income tax return.

Line 22 would reflect the income after deductions wouldn't it though ? That line on my tax return is less than half of my own

tallied gross income intake in my ledger.

Accounting is definitely my weak point

[belinda63 3,052]

If you look at the lines prior to line 22 you see it will include your pension/annuity income but it will exclude your business deductions. When you have a business your gross income is not your taxable income. You are permitted to deduct all kinds of things like bad debt, cost of products for resell, depreciation, and all sorts of things. It is not uncommon for a business to have a negative adjusted income for tax purposes.

[KayDeeCee 4,896]

Line 22 is only after business deductions, not all the tax deductions. It can be tricky for those that are self-employed because you want to get all the business deductions you can to make your taxes lower, but then that shows as less income on line 22. It has sometimes been advised to people to amend their most recent tax return to take less business deductions so enough income shows on line 22.

If you use quarterly profit/loss statements, you could also use those to show your income amount. For the I-134, you could probably put the AGI amount, since the I-134 doesn't actually have the same strict requirements as the I-864. The CO decides on their own if they think the foreign fiance(e) will become a public charge or not, so you just need to provide enough proof to show they won't.

When it comes time for AOS and the I-864 though, you will need to meet those requirements.

[Ebunoluwa 6,136]

Thanks Belinda63 for your help.

[Ebunoluwa 6,136]

Line 22 is only after business deductions, not all the tax deductions. It can be tricky for those that are self-employed because you want to get all the business deductions you can to make your taxes lower, but then that shows as less income on line 22. It has sometimes been advised to people to amend their most recent tax return to take less business deductions so enough income shows on line 22.

If you use quarterly profit/loss statements, you could also use those to show your income amount. For the I-134, you could probably put the AGI amount, since the I-134 doesn't actually have the same strict requirements as the I-864. The CO decides on their own if they think the foreign fiance(e) will become a public charge or not, so you just need to provide enough proof to show they won't.

When it comes time for AOS and the I-864 though, you will need to meet those requirements.

I was thinking the same thing, to just go with the higher line 37 and let them use what they want from the tax return showing the details.

My line 22 amount only meets the income requirement when it counts the annuity. Strange that they have no space for "other" income on the form such as annuities etc.

I will use the line 37 number and explain it is my AGI and include the annuity to it as well and attach a sheet to clarify it.

For AOS later, my annuity will count as income to my line 22 right ? Because if it doesn't then I will be in trouble with line 22 only.

Yes, it is very crazy trying to balance the level of income with the deductions you have every right to utilize.

I had a hard time qualifying for a car loan because of that even though my "income level" is very adequate with a decent credit score.

Tax law....oh joy ! Not.

Thank you very much for all your help, much appreciated.

[KayDeeCee 4,896]

Yes, annuities and pensions get added in on line 16, so that and any other income you may have would be included for the total income on line 22.

I completely understand. Taking the deductions is good for taxes, but bad for trying to show you have decent income. It is seen as taking the allowed deductions equals all that income actually going back into the business, so it is not counted as personal income in your pocket.

You are welcome.