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I'm hoping someone out there can help with this. My husband is a self-employed salesman, and I'm an at-home mom. For the financial requirements to adopt from China, do they look at the "Total Income" or "Total Gross Adjusted Income" on your tax returns? There is quite a difference in these, once you factor in our business expenses.
Also, do they just look at the most recent year's tax return, or do you have to meet the $10K per person requirement as an average yearly salary over the past couple of years or so?
Any help anyone can give would really be great!
Thanks,
Lori Ann
Hello Lori Ann,
China wants the total gross income after you take into account your loans, debts etc. The income is based upon last year's income.
Hope it helps,
Mashimoro
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I believe Mashimoro is combining/ confusing 2 different documents....
There is an income requirement and then there is the financial statement the parents need to present.
For income it's based on before taxes. China has a set amount it's looking for based on family size. If the income is slightly under there can be some explanations which the Chinese gov't will see as 'OK'.
For the financial statement China is looking to see that overall assets are greater than the debt the family is carrying. That takes into acct the value of one's home, savings, retirement... and on the liability side is the mortgage amount owed, loans owed, credit card.... I'd have to look over our agency's forms to get the exact particulars...
Joanne
And to get to the original question... for self employment you have a CPA write a statement about your income. That statement would talk about stability of income, increases in past years, expected increases....
We had combined self employment and work with an employer and our CPA looked over the past few years of returns to write the statement.
The Chinese gov't wants to see stability in income and that the child will be provided for.
Your homestudy agency/ state may require you to submit several years of tax returns for state regulations.
Joanne
The $10K per person is for the current year. We asked the same question because we went through a period of unemployment a couple of years ago, and our income went down accordingly. The proof of employment letter does, however, say something about the potential for continued future employment. I would guess that is to assure that the income level stays in the right range.
This was the most frustrating part for us while putting our dossier together.... Our financial statement showed our gross income and the employment verification letter (from a CPA) showed our gross and our net income.
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