Applying for K1, child support and self-employment questions

[whitegirlinmaroc 0]

Just starting this process, but I wanted to make sure that I understand and get some clarity specifically on the financial front.

 

Here's my story.

I was divorced Sept. of last year (2019).  I am self-employed and I also contract with a company (get a 1099 from them). I have 4 kids and I receive child support.

 

When my ex and I file our taxes this year, my tax return info that I will be using won't necessarily be accurate for the K1.  It won't have the child support payments (those didn't start til Nov.) and it won't be reflective of my own income without the help of my ex.  How does this work?  Say we are ready to submit this paperwork by the end of the year, and at that point almost an entire year has gone by with different financial reflections showing on paper, because it's based on the previous year's returns. I won't be filing to show the most up-to-date income until I complete my return in early 2021. 

 

Thank you in advance for any advice.

 

[Wuozopo 4,293]

Explain your situation better. 
You are a divorcee With 4 kids, who wants to file a petition for a new fiancé?

When will you file the petition? What country is your fiancé from?

You are self employed?

You receive child support?

Your real question is how are you going to qualify as the sponsor on the K1 affidavit of support?

This topic is about the K1 process, not how to file a 2019 tax return with a K1 spouse?

 

 

Edited February 4, 2020 by Wuozopo

[whitegirlinmaroc 0]

Thank you for your reply.

We are hoping to file the petition sometime this Spring, April probably. 
Fiancé is in Morocco. Yes, I’m self employed and do contract work and I have 4 kids. 
 

Yes this question is about the K1 process but I brought up the taxes situation b/c of the proof they’ll need showing my income and my income for 2019 is not going to be the same as what it will show for 2020 (if we’re having to show tax returns as proof). 
 

With child support plus my income, I meet/exceed the 125%+ income sponsorship requirement. I just don’t really know how to show proof since 2019 was a transitional year. Hope that makes sense. 
 

 

[Wuozopo 4,293]

As self employed you will have to prove income with a tax return because you can reduce your gross income with the business deductions you take on Schedule C. Those deductions aren’t apparent until you file. If you want more to show on your tax return (Line 7b), then you could take a hit on taxes by not claiming any business deductions. That might not help much if you don’t take much on Schedule C. Child support is not going to appear on your tax return as income anyway, but you could provide separate documentation of it. It can be used as income for an affidavit of support. 
 

If you start the process in the spring, the K1 interview could be in 2021. You will not turn in the affidavit of support until interview time. Delay the interview until you have filed 2020 taxes if that shows more than 2019 Line 7b. 
 

In general, child support payments are considered “outside” of the tax system for both parties. In other words, they don't affect taxes and are not of interest to the IRS. The person making the payments cannot deduct the payments as any sort of expense, and the other person does not have to list the payments as income.

[whitegirlinmaroc 0]

Ok thank you so very much.

You were very helpful and fully answered my question.