Is my Tax Return above the 125% poverty rate requirement?

[HulkySun 4]

8 minutes ago, JeanneAdil said:

For your area,  that income is low

 

 The average income of a Sarasota resident is $29,969 a year. The US average is $28,555 a year. - The Median household income of a Sarasota resident is $41,670 a year.

 

and you must research cost of health insurance and prove you can afford it as you are self employed

I live close, but actual The average income of axxxxx resident is $24,241 a year in my city

[Cndn 98]

Just now, Henry357 said:

They must know that self employed people take deductions that are not really  business expenses  and  can therefore be diverted to support someone ?  I can guess how the conversation with the  supervisor goes.  “ this sponsor  put they only made 25k per tax return  but we all know it’s more wink wink self employed.”  
 

They likely just go off the income as stated and don’t dig into it.  If anything they discount it because self employment is considered less stable by most people than say working for a big well known company. 

Yeah, it’s hard to say. Might depend on the officer. Everyone knows about self employed deductions. When an officer is making a judgment call, they may or may not look at a self employed income differently. It’s just something I’ve always wondered about.

 

I don’t know about less stable? It depends. My husband has been a sole proprietor since 2014. His business and personal income grow substantially each and every year (with the exception of this one being there was lock down and all) so it’s clear the business is growing well and is stable. I think USCIS would put more weight on a self employed person’s income if they have been in business for years and the tax returns reflect a business that is growing. If someone just started their business the year before then yeah that might look like it could be a little less stable. 

[Henry357 70]

16 minutes ago, Cndn said:

Yeah, it’s hard to say. Might depend on the officer. Everyone knows about self employed deductions. When an officer is making a judgment call, they may or may not look at a self employed income differently. It’s just something I’ve always wondered about.

 

I don’t know about less stable? It depends. My husband has been a sole proprietor since 2014. His business and personal income grow substantially each and every year (with the exception of this one being there was lock down and all) so it’s clear the business is growing well and is stable. I think USCIS would put more weight on a self employed person’s income if they have been in business for years and the tax returns reflect a business that is growing. If someone just started their business the year before then yeah that might look like it could be a little less stable. 

It’s generally viewed as less stable by underwriters unless you can provide additional information like your describing.  Highly doubtful the OP could provide such info with a only 22k income and 8k in expenses. 
 

Also I wouldn’t go around bragging that your writing off half your rent unless you really are using half your place for business purposes.  Also you can’t write off gas and food unless it’s for business purposes.  If the are true business expenses than you can’t divert the income to anything else without hurting your revenue.   I know it’s a fine line but you can’t argue that it’s a business expense to the IRS than argue that it’s not to USCIS. Your income is what you stated it as.

Edited July 15, 2020 by Henry357

[HulkySun 4]

2 minutes ago, Henry357 said:

It’s generally viewed as less stable by underwriters unless you can provide additional information like your describing.  Highly doubtful the OP could provide such info with a only 22k income and 8k in expenses. 
 

Just to chime in, the OP provided the sample 1040 for discussion. Where does 8k in expenses come from? OP has many tens of thousands in legitimate business expenses. 

 

Chime in over 😅

[Cndn 98]

8 minutes ago, Henry357 said:

It’s generally viewed as less stable by underwriters unless you can provide additional information like your describing.  Highly doubtful the OP could provide such info with a only 22k income and 8k in expenses. 
 

Also I wouldn’t go around bragging that your writing off half your rent unless you really are using half your place for business purposes.  Also you can’t write off gas and food unless it’s for business purposes.  If the are true business expenses than you can’t divert the income to anything else without hurting your revenue. 

I wasn’t bragging. I was simply relaying what you are legally allowed to write off as a business owner. My husband does not rent a space for his business, so he is entitled to write off half his rent. That’s not a misrepresentation, it’s just simply how things are set up. All of his estimates, bids, emails & communication takes place at our kitchen table.

Edited July 15, 2020 by Cndn

[Henry357 70]

1 minute ago, Cndn said:

I wasn’t bragging. I was simply relaying what you are legally allowed to write off as a business owner. My husband does not rent a space for his business, so he is entitled to write off half his rent. That’s not a misrepresentation, it’s just simply how things are set up. 

Your allowed to write off business expenses. Is it a business expense or not?  It’s not just “set up that way.”  I was a CPA, reading the lRS rules: 

 

“Generally, when using the regular method, deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities.”

 

You are calming half your home is use solely for business.  I’m sure you have a good case to argue that but if you do you need to stay consistent.   Can’t tell the IRS one thing and another government agency another. 

[Henry357 70]

9 minutes ago, HulkySun said:

Just to chime in, the OP provided the sample 1040 for discussion. Where does 8k in expenses come from? OP has many tens of thousands in legitimate business expenses. 

 

Chime in over 😅

Then tell him to raise is income and pay the tax. Can’t have your cake and eat it too. 
 

[HulkySun 4]

4 minutes ago, Henry357 said:

Then tell him to raise is income and pay the tax. Can’t have your cake and eat it too. 
 

Right on!  There is no cake being eaten either way, its simply a different system and taxes are paid differently and significantly into the system with huge expenses not easily understood as a more simple W2.  I'm not running a neighborhood lawn mowing service for extra money on weekends

[Cndn 98]

13 minutes ago, Henry357 said:

Your allowed to write off business expenses. Is it a business expense or not?  It’s not just “set up that way.”  I was a CPA, reading the lRS rules: 

 

“Generally, when using the regular method, deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities.”

 

You are calming half your home is use solely for business.  I’m sure you have a good case to argue that but if you do you need to stay consistent.   Can’t tell the IRS one thing and another government agency another. 

We have a certified accountant who does both our business and personal taxes and ensures all deductions are valid, thanks. 

[Henry357 70]

14 minutes ago, Cndn said:

We have a certified accountant who does both our business and personal taxes and ensures all deductions are valid, thanks. 

Lol did you read my post.  “I’m sure you have a good case to argue” that half your place is used for business purposes .  You just can’t turn around and than argue the counter factual to another government agency. 

The fact is your claiming half your residence as a business expense period.  I never said it want valid.

Edited July 15, 2020 by Henry357

[Henry357 70]

19 minutes ago, HulkySun said:

Right on!  There is no cake being eaten either way, its simply a different system and taxes are paid differently and significantly into the system with huge expenses not easily understood as a more simple W2.  I'm not running a neighborhood lawn mowing service for extra money on weekends

Okay fine. Leave it as is and write a note for the CO/IO to read outlining why the income on the  tax return is understated...... what more can you do?

Edited July 15, 2020 by Henry357

[Cndn 98]

10 minutes ago, Henry357 said:

Lol did you read my post.  “I’m sure you have a good case to argue” that half your place is used for business purposes .  You just can’t turn around and than argue the counter factual to another government agency. 

The fact is your claiming half your residence as a business expense period.  I never said it want valid.

I don’t understand at all what you mean about arguing the “counter factually to another government agency.” What? Who did that? I just submitted all the financial information they asked for like everyone else. How they interpret it or what judgement call they make is completely out of my control. No one has argued anything. 

[Henry357 70]

16 minutes ago, Cndn said:

I don’t understand at all what you mean about arguing the “counter factually to another government agency.” What? Who did that? I just submitted all the financial information they asked for like everyone else. How they interpret it or what judgement call they make is completely out of my control. No one has argued anything. 

It was a hypothetical.  You asserted that self employment income should be treated by DOS/USCIS in higher regard due the amount of deductions taken. You used your rent as an example of a dedication that should be considered.  No? 
 

This would require someone to argue (or for the officer to infer)  to USCIS/DOS that these are not true business dedications, the income is understated and the income could be diverted to support the person if needed.  I think it would be hard to argue this case since it’s counter factual to the persons IRS declaration.  
 

You have a different view I guess. 

Edited July 15, 2020 by Henry357

[Cndn 98]

2 minutes ago, Henry357 said:

It was a hypothetical.  You asserted that self employment income should be treated by DOS/USCIS in higher regard due the amount of deductions taken. You used your rent as an example of a dedication that should be considered.  No? 
 

This would require someone to argue to USCIS/DOS that these are not true business dedications, the income is understated and the income could be diverted to support the person if needed.  I think it would be hard to argue this case since it’s counter factual to the persons IRS declaration, but OP is free to do this if likes. 

No. I was simply wondering out loud (probably not a good idea to do that here) about whether or not IO’s view self employed income differently. I was absolutely not making an assertion that they SHOULD view it differently. Another user pointed out that all self employed deductions are for money used toward business expenses, and therefore cannot logically be also viewed as money that can support the immigrant spouse, which I accept as making perfect sense. I think that’s possibly what you’re getting at. I don’t disagree, I’m just still curious if self employed income is viewed differently by some IO’s. I’m sure it’s not. 

[Henry357 70]

2 minutes ago, Cndn said:

No. I was simply wondering out loud (probably not a good idea to do that here) about whether or not IO’s view self employed income differently. I was absolutely not making an assertion that they SHOULD view it differently. Another user pointed out that all self employed deductions are for money used toward business expenses, and therefore cannot logically be also viewed as money that can support the immigrant spouse, which I accept as making perfect sense. I think that’s possibly what you’re getting at. I don’t disagree, I’m just still curious if self employed income is viewed differently by some IO’s. I’m sure it’s not. 

My guess is no, they will just look at income as stated.  The burden is on the applicant to show they will not become a public charge after all.