Form I-864A assistance?

[Rsul96 2]

Basically I'm the petitioner sponsor for my wife's CR-1 visa, and my mother is the joint sponsor. My father is filing I-864A and the tax forms is where we're running into a bit of a confusing situation.

 

My parents file their taxes jointly. My mother has a salaried job, and my father owns/runs his own business. What forms exactly do I submit as proof of my father's income? I know I should submit the 1040 for both of their incomes (since both are listed on the 1040).

 

Should I then submit all the included schedules? For some reason, it looks like their tax preparer didn't include a 1099 with their tax returns. Is this normal?

[Highmystic 234]

1 hour ago, Rsul96 said:

Basically I'm the petitioner sponsor for my wife's CR-1 visa, and my mother is the joint sponsor. My father is filing I-864A and the tax forms is where we're running into a bit of a confusing situation.

 

My parents file their taxes jointly. My mother has a salaried job, and my father owns/runs his own business. What forms exactly do I submit as proof of my father's income? I know I should submit the 1040 for both of their incomes (since both are listed on the 1040).

 

Should I then submit all the included schedules? For some reason, it looks like their tax preparer didn't include a 1099 with their tax returns. Is this normal?

The 1040 should be the correct things to send.  On the 1099, it is normally issued "by" a payer so they can deduct the fees paid from the payers taxes as an expense.  It is issued to the recipient and the recipient should claim the 1099 on their taxes as income.  It is NOT needed if the tax prep person is an LLC and your dad an LLC as they both have a TIN. (Tax Id Number) in lieu of using a persons SS# to file. 

 

Your parents 1040 should be fine if your father (even if not an LLC) includes his income and if he could prove that he made that amount.

[Rsul96 2]

1 minute ago, Highmystic said:

The 1040 should be the correct things to send.  On the 1099, it is normally issued "by" a payer so they can deduct the fees paid from the payers taxes as an expense.  It is issued to the recipient and the recipient should claim the 1099 on their taxes as income.  It is NOT needed if the tax prep person is an LLC and your dad an LLC as they both have a TIN. (Tax Id Number) in lieu of using a persons SS# to file. 

 

Your parents 1040 should be fine if your father (even if not an LLC) includes his income and if he could prove that he made that amount.

 

I found out that's he's actually a sole proprietor of an unincorporated business. What would he use as evidence of income in this circumstance?

[Highmystic 234]

On 4/30/2018 at 8:16 PM, Rsul96 said:

 

I found out that's he's actually a sole proprietor of an unincorporated business. What would he use as evidence of income in this circumstance?

In any business, regardless of organization,  if you claim a net income for business, after deducting expenses, the irs really does not care what you claim as "income", since if you claim you netted x-amount, and pay tax on that amount, they are happy.  However, it is the deductions that they are more concerned about.  IE, one claims 100K gross income, and 90K deductions, and then claim 10K income, they want to know what the 90K was from.  But in a nutshell,  if he makes widgets in the garage, and sells them at a swap meet, and actually claims the cash as income, then only the bottom line on the 1040 is all he can use as "listed income".  I mean, who in their right mind would claim they made 50K, and pay tax on that, if they really didn't make that much?.  The IRS will accept what you say you made if it is actually honest.  They rarely ask to prove you made "that much", and only to prove you made "that little" of income.    Sorry for the long answer.  I type as fast as I talk! LOL

[pushbrk 12,979]

On 4/30/2018 at 10:03 PM, Highmystic said:

The 1040 should be the correct things to send.  On the 1099, it is normally issued "by" a payer so they can deduct the fees paid from the payers taxes as an expense.  It is issued to the recipient and the recipient should claim the 1099 on their taxes as income.  It is NOT needed if the tax prep person is an LLC and your dad an LLC as they both have a TIN. (Tax Id Number) in lieu of using a persons SS# to file. 

 

Your parents 1040 should be fine if your father (even if not an LLC) includes his income and if he could prove that he made that amount.

Not correct.  The 1040 will be only PART OF this couple's complete tax return.  A complete tax return includes ALL schedules W2's and 1099's.  The father may NOT have a 1099.  It depends on how he is paid and what kind of self employment he is engaged in.  The wage and salary income will be Mom's and the business income will be Dad's.  Those appear on separate lines of the 1st page of the 1040 form.  Details of Dad's income will be on schedule C of the "complete tax return".

 

Essentially, the number on line 22 minus Mom's income is, by definition either joint interest income or capital gains or Dad's business income.  The self employed person's ONLY evidence of current income is their last tax return, BECAUSE it IS NOT INCOME until it appears on a tax return.

[NikLR 13,227]

Better to provide tax return transcripts from the IRS vs the tax return.