income requirement question

[kevn04 0]

I have a question about how I should file my taxes. first of all, I am self employed. I am gathering all my tax write off receipts and adding up all my expenses, and tax deductions. I made right around $40,000 and I am wondering if anyone knows if I should write off my expenses to show that I made less than 125%, or should I stop writing things off while I am still showing income above that 125% of poverty mark. Its my understanding that for the year 2014, 125% of poverty was right around $20,000. I really don't want to have to pay taxes on that much at once but if I need to I will stop using tax deductions when it is lowered to about $25,000 and just pay the taxes. Or I am wondering if I will still show the 40,000 income even if I use all the deductions I have to show that I made nothing at all?

[sweetbabe 2]

I have a question about how I should file my taxes. first of all, I am self employed. I am gathering all my tax write off receipts and adding up all my expenses, and tax deductions. I made right around $40,000 and I am wondering if anyone knows if I should write off my expenses to show that I made less than 125%, or should I stop writing things off while I am still showing income above that 125% of poverty mark. Its my understanding that for the year 2014, 125% of poverty was right around $20,000. I really don't want to have to pay taxes on that much at once but if I need to I will stop using tax deductions when it is lowered to about $25,000 and just pay the taxes. Or I am wondering if I will still show the 40,000 income even if I use all the deductions I have to show that I made nothing at all?

Immigration don't care about your expenses. all they want to know is that you qualify for the income requirements and a proof that you make that much a year. Tax returned copy is one of the proof annual income. goodluck!

[kevn04 0]

Immigration don't care about your expenses. all they want to know is that you qualify for the income requirements and a proof that you make that much a year. Tax returned copy is one of the proof annual income. goodluck!

ok thanks. so I am thinking that I can write off as much as I possibly can to lower the amount of taxes I will have to pay to the IRS and it shouldn't matter, because in the end, when my tax return comes it should still show the initial $40,000 income that I earned?

[j&ana 363]

Yes you can lower your income as much as you can to pay less taxes.

The I-864 is asking for total gross income so no matter what amount you lower your income to for the IRS.You will still put 40000 for income on the I-864 if that is what you made

[kevn04 0]

Yes you can lower your income as much as you can to pay less taxes.

The I-864 is asking for total gross income so no matter what amount you lower your income to for the IRS.You will still put 40000 for income on the I-864 if that is what you made

oh thanks a lot for the info. I was a little nervous about it so I was just going to bite the bullet and pay more in taxes than I needed to, but, the less I give to "uncle sam" is the more I can spend to go see my fiancée.

[sma1488 155]

The I-864 asks for adjusted gross income, which will be less than your gross income since you're self-employed and you can take certain deductions, such as deducting one-half of the self-employment tax. It shouldn't bring it down to below the minimum of ~$20,000 though.

As a side note, if you earned $40,000 in 2014 and you didn't make estimated payments....well, you're in for an unpleasant surprise when you file your taxes.

[j&ana 363]

The I-864 asks for adjusted gross income, which will be less than your gross income since you're self-employed and you can take certain deductions, such as deducting one-half of the self-employment tax. It shouldn't bring it down to below the minimum of ~$20,000 though.

As a side note, if you earned $40,000 in 2014 and you didn't make estimated payments....well, you're in for an unpleasant surprise when you file your taxes.

I-864 ask for total gross income if you file a IRS 1040 or 1040 a form. IF you file your taxes using 1040ezform then you will use adjusted gross income

as far as the op being surprise, he already stated that he wanted to use deductions to lower his income reducing the tax he owes, which he can do. Just because someone made 40000 does not necessary mean that is the amount they will pay taxes on

Edited March 1, 2015 by j&ana

[sma1488 155]

I-864 ask for total gross income if you file a IRS 1040 or 1040 a form. IF you file your taxes using 1040ezform then you will use adjusted gross income

as far as the op being surprise, he already stated that he wanted to use deductions to lower his income reducing the tax he owes, which he can do. Just because someone made 40000 does not necessary mean that is the amount they will pay taxes on

You're right. He can't used the 1040-EZ because he's self-employed. He'll have to use the regular 1040.

As for the last part of my post, I think you misunderstood. With $40,000 in gross earnings, even after deductions, he should have been making estimated payments. It won't affect his ability to sponsor his fiancée, but it will cost him an underpayment penalty on top of whatever he was supposed to pay.

[RobertAtlantaUSA 1]

I just went through this I-864 maze, and my understanding from the instructions is that they ask for your TOTAL INCOME from your 1040 or your AGI from 1040ez. OP can not file an EZ since he has SE income. That number will be net of expenses from schedule C (Self employed) of form 1040.

So if OPs gross from self employment was $40,000 and after expenses net was $20,000 and he had no other income, then $20,000 would be his TOTAL INCOME. The lower that net number goes, the closer he comes to the 125% above poverty line.

OP, if you are making that much money and filing a self-employment schedule C on your 1040, you might be able to lower your tax burden by forming an S corporation. I have done that for the past 20 years and it has saved me tens of thousands.

Edited March 2, 2015 by RobertAtlantaUSA

[charlieprince 24]

$40,000 is plenty fine

[kevn04 0]

Umm, well I have filed my taxes, now I don't know what to think after reading all these additional posts. I reported the 40,000. After deductions and all, they give me an adjusted gross income of right around 15,000 and there was some other number it maybe was the net income... That was about 17,000. So if I can not use my total income (40,000). I might be screwed because niether one of those numbers are 125% of poverty ? ah maybe I need to look at that form myself, I'm a little nervous now, but if worst comes to worst I will need to have proof of support from someone else I guess, I think that would not make things any easier for me.