Faye1

I'm a little confused about what to submit for our I-864....

My USC fiance is in the process of finishing his masters degree and works part-time as a tutor and so only earns around $5k per year (he files a 1040 + schedule C as an independent contractor).

I (UKC) earn over $65k per year and so we plan to use my income for the I-864 form. I file taxes in both the UK and US and also file a 1040 and schedule C.

My salary is paid directly into my UK bank account in pounds (I work for a British company although based in NY) and then I transfer some of this to my US chase account to cover rent etc

I've been reading mixed messages about using a 1040 with no W2 for the I-864 forms.

- Will our combined income of $70k be okay to use by submitting just our 1040's?

- Would it be seen as potentially negative that there is such a large difference in our salaries?

Over the past few months, my fiance has begun to do regular well paying freelance work which will be reflected in his 2011 tax return next year (around $20k as an independent contractor).

We had planned to get married this year, so I assume his extra income doesn't make much difference to my impending AOS application as we only have 2010 tax returns to submit.

If necessary, we could however postpone our wedding until next year when his income will be stronger (I have 3 years left on my current visa)

Any advice is appreciated!

Noorah101

If you submit photocopies of your 1040's, you will need to also submit whatever end of year earnings statement you recieve...if he's self employed, he should be getting a 1099. If your income is from a US source, you'd get a W-2. Not sure what you actually do get, since your paycheck gets deposted in the UK.

Either way, the best thing for both of you to do is to get an official IRS tax transcript. They are free, and be obtained by calling the IRS 800 number. They come in the mail about 10 days after you order them. This way, you don't have to provide photocopies or end of year statements...only the IRS tax transcript that IRS sends you.

No. After marriage, what's his is yours and what's yours is his.

It's not important what the past year(s) tax return shows as income. What counts is your *current* income at the time you are filling out the I-864. So if he's getting that extra $20K a year steadily, by the time you're doing the I-864, then by all means count it in.

Probably no need to postpone filing your AOS. Sounds like your combined income is currently enough.

Rene

jeffreyhy

This confuses me. You say that you are a salaried employee, but Schedule C is for reporting profit or loss from a business that is run as a sole proprietorship. You are asking about Section 25 of the I-864, and this combined income figure is the sum of the Line 22 figures on your and his Forms 1040? (And note that you submit your complete income tax returns, as submited to the IRS, which is more than "just our 1040's"
It's quite common for a husband and wife to have significantly different incomes. Excellent - that should be reflected in Sections 23 and 24 of the I-864.

Au contraire. But you say that his income is already stronger.

ozmac79

Just to clarify, does the tax transcript replace both the tax return and the W-2s? Also, do they provide for last three years, or just the most recent?

jeffreyhy

The W2s are a part of the tax return. The tax transcript replaces the tax return. (Exception: when a joint tax return is involved, but the income of only one of the tax payers is being used, then W-2s, 1099s, and other documents from the tax return may be needed to separate the sponsoring tax payer's reported income from the reported joint income.)

The policy is that only the one most recent tax return is required, but that the case officer may request three years if they see a need for them. The anecdotal evidence indicates that it is common for them to see a need. Perhaps old habits die hard.

Regards, JEff

Noorah101

As JEff points out, a "complete tax return" includes the 1040, any schedules, and the W-2 or other year-end statements (like 1099). The IRS Tax Transcript can be used in place of all those photocopies.

Yes, IRS will provide more than 1 year of tax transcripts. You tell them which years.

Rene

jeffreyhy

Good answer. I think I misunderstood the question

Regards, JEff

ozmac79

Thanks for the swift response.

Faye1

Hi Jeffrey

Thanks for your earlier feedback.

Firstly, I'm still getting my head around the US tax system and have UK and US accountants who file everything for me, so I'm still not 100% sure whats going on sometimes!

I'm one of the directors of the UK company I work for and am therefore paid in both salary and dividends, which is I think why I file a schedule C.

There is a bit of a confusing situation with my fiance as he works for the same UK company as me (which I am a director of) and I'm concerned this might look a bit weird to the immigration authorities....

I actually got to know him in 2008 when he did some freelance writing for the company. This year he began doing some more regular freelance work for the UK office and reports to one of my colleagues in London (he can show evidence of monthly project reports etc).

The complication is that part of my role in the company has been to pay all of our US freelancers via paypal (around 10 of them currently) and I set up our business paypal account which means it has MY name on all of the transactions.

I hadn't thought about it as an issue until this week and have since requested my fiance is paid directly from the UK business bank account into his US account to ensure this looks less odd.

The potential problem is that if we use his current 2011 income for the I-864, as he won't file tax returns until April 2012, his only way to prove income is to show either his paypal account statements (with my name on the transactions) or his bank account with his paypal transfers.

He can however provide all of his monthly invoices, proof of work he has done and a letter from the UK office confirming his employment.

We already live together and aren't in a huge hurry to marry (I have 3 years left on my current visa). I'm wondering if we should hold off until next year and make sure all if his tax/payment issues are straight before we even begin this process...

Noorah101

The tax returns only prove past income anyway, so don't worry about the 2011 tax returns. He can just provide whatever proof he has of his current income - paypal account statements, bank account, monthly invoices, letter from UK office, etc. All of that data will provide the correct picture of his current income. I wouldn't worry too much about your name being on his payment transactions.

The choice of when to get married is a personal one that you guys have to decide on. Your choices are:

1. Get married now, and file AOS soon after marriage.
2. Get married now, but hold off filing AOS until later, if you want.
3. Get married later, if you want, and then file AOS after that.

I didn't read back to see what visa you're on, but if anything should happen with your employment here in the USA, you'll be scurrying to marry and file AOS...which is not a good situation to be in. IMO, it's better to marry and file AOS sooner rather than later, to secure your status in the USA.

Rene

jeffreyhy

You, me, and millions of other US taxpayers as well!

Fortunately, we're dealing with immigration here not the IRS, so we don't need to understand US tax law. We need to understand only two things:
- I-864 ask for two separate and distinct income numbers, current income in Sections 23 & 24 (which is not income reported on any tax return, not year to date income, and usually is not expected income to be earned during the current year although that may be the figure you'll have to use in your fiance's case) and past income as reported to the IRS on income tax returns in Section 25.
- the number they're looking for in Section 25 is Line 22 on Form 1040 (Line 15 on Form 1040A or Line 4 on Form 1040EZ).

Regards, JEff



What is the potential problem? If you wait until he files his 2011 income tax return in April 2012 his current income will be whatever he's earning in April 2012, not what he's earning today. The potential problem that I see is, using your approach, you'll never get the application submitted!

Faye1

Thanks Jeff & Noorah - You make great points.

And yes Jeff,I think I'm just procrastinating and being a bit of a neurotic scardy cat about it all...

Shall get on with things!

ozmac79

Well ordering those tax transcripts was a piece of cake. Furthermore you can do it online in a couple of clicks.

I've also included copies of sponsor's W2s as Jeff suggested, since it was a joint tax return and we're only using one of the filer's income.

Faye1

I spoke with my US accountant and I definitely don't have a W-2 or a 1099 to use for the I-864 as my company is UK based.

I'll be able to show 2008-2010 US & UK tax returns (showing a salary of over $65k), UK and US bank statements, and a letter from my UK employer confirming my salary.

QUESTION:
Without a W-2 or 1099 do you think the immigration authorities will accept my UK based income as the main qualifying amount for the I-864 (I'm the UKC).

Each year I file my US taxes with a delay because I have to wait for my UK taxes to be processed first. This means I only paid my 2010 US tax return in late June and the IRS said it could be another 6 weeks until its fully processed.

QUESTION:
Should I wait until the IRS has physically processed my 2010 return before I even think about submitting our first set of AOS forms? (I could send a copy of the return and receipt of online payment with the I-864 for now?)

Many thanks for any advice

Noorah101

You should be fine, because it's not the income shown on the tax returns that counts, anyway. It's your *current* income, which you will demonstrate by recent pay stubs and a letter from your employer.

Rene