What is the current annual income and why is it needed?
The current annual income is the projected amount that a sponsor, and when applicable, joint sponsor, will earn that calendar year. Current annual income is calculated before any tax or other deductions and is sometimes referred to as gross income. Tax documents are not used to find the figure for current annual income as they are from a previous year and may not reflect financial changes. The current annual income helps support the claim to USCIS that the sponsor, and when applicable, joint sponsor, meet the financial requirements. The reported current annual income should match the salary figure listed on the employment verification letter (EVL).
Calculating current annual income
Salaried employees:
The current annual income will be your total annual salary. This should be stated on your employment verification letter and reflect on your pay stubs. Please note that bonuses or commission should not be included in this figure because they may not always be consistent.
Hourly employees:
Hourly employees will need to calculate their annual income by multiplying their hourly wage by the average number of hours they work each week. Then, multiply that number by the total number of weeks in a year (52).
Example:
FAQ:
What if I have more than one job?
Sponsors that have more than one job should calculate the current annual income for each job individually and then add them together. The total amount is what the sponsor will enter as their annual income. Please note that you will need to provide an Employment Verification Letter and 6 months of paystubs for each job referenced.
What if I am self-employed?
If the individual is self-employed and does not work consistent weekly hours, they can estimate their income by calculating their monthly average using their net individual (not business) income for the year so far divided by the number of months in the year that have passed multiplied by months.
Example:
My employer only included my hourly wages on my employment verification letter, but not my annual salary. What should I do?
If possible, it is best for your employer to include your annual salary in your employment verification letter. If you are paid hourly, you will want to ask that they include your hourly pay rate and your average hours worked each week. Be sure to add a separate conversion letter that contains the following conversion equation to show USCIS how you calculated your annual income.
Conversion Letter Sample
What is the difference between annual income and total income?
Annual income is the raw income that someone makes before any kind of deductions. Total income (reflected on the 1040 Tax Return and W-2 Form) is the net income that is calculated after all withholdings are accounted for. Please note that when listing your previous tax income history, you will use the total income amount from each tax return. However, for the current annual income, you will want to list your annual income, not your total income.