How Much Net Income Is “Safe” for Self-Employed Sponsors? — Using Tax Returns for Form I-864 Affidavit of Support
“I’m self-employed. If I deduct a lot of expenses, can that hurt my green card or visa case?”
As of February 2026, this is one of the most common concerns among self-employed sponsors preparing their 2025 U.S. tax return (filed in 2026) for family-based immigration.
The key takeaway: legal deductions are allowed, but if your reported net income appears too low, USCIS may question whether your income is sufficient — often resulting in a Request for Evidence (RFE).
1️⃣ Why Tax Returns Matter for Form I-864
In family-based immigration cases, financial sponsorship is evaluated primarily through tax records.
USCIS officers typically review the most recent three years of IRS tax transcripts to assess whether the sponsor’s income meets the required level and appears stable and ongoing.
For self-employed sponsors, officers usually look first at Schedule C, Line 31 (Net Profit).
2️⃣ 2026 Federal Poverty Guidelines & the 125% Rule
Form I-864 generally requires household income of at least 125% of the Federal Poverty Guidelines.
The figures below reflect guidance released in mid-January 2026. (Alaska and Hawaii follow separate guidelines.)
| Household Size | 100% Guideline | 125% Threshold | Practical Meaning |
|---|---|---|---|
| 1 | $15,960 | $19,950 | Minimum solo sponsor level |
| 2 | $21,640 | $27,050 | Married couple |
| 3 | $27,320 | $34,150 | One dependent added |
| 4 | $33,000 | $41,250 | Common family case |
USCIS is generally less concerned with how much tax you paid and more focused on whether your reported income reasonably supports household self-sufficiency.
3️⃣ Net Income Red Flags for Self-Employed Sponsors
Claiming legitimate business expenses is allowed.
Concerns arise when net income appears too low to realistically support your household, especially in high-cost areas such as New York or California.
| Area | Red Flag | Safer Profile |
|---|---|---|
| Income Trend | Sharp year-to-year fluctuations | Stable income over multiple years |
| Expense Structure | High expenses with weak explanation | Industry-reasonable costs |
| Cash Flow | No link between return and bank activity | Invoices, contracts, bank records |
While USCIS generally prioritizes Schedule C net profit, non-cash deductions such as depreciation may require additional explanation, since they do not reflect actual cash flow.
4️⃣ EA Case Example: Tax Savings vs Immigration Review
- Profile: Self-employed sponsor, household of three
- Issue: Strong gross revenue, but Schedule C net profit falls below 125%
- EA Approach: Avoid inflating income; instead, document expense logic and income continuity
When income alone does not meet the requirement, assets such as savings or property may sometimes help support a Form I-864 filing, depending on the circumstances.
5️⃣ Top Mistakes & Quick Checklist
- Focusing only on tax minimization without immigration planning
- No documentation explaining recent income decline
- Incorrect household size calculation
- Failing to obtain IRS tax transcripts early
- Overlooking foreign asset reporting obligations
- Last 3 years of IRS tax transcripts
- Schedule C Line 31 reviewed
- Expense and asset documentation organized
6️⃣ FAQ
- Is high gross income enough?
No. USCIS focuses on net income and sustainability. - Should I pay more tax to be safe?
No. Clarity and consistency matter more than overpaying. - Where can I get tax transcripts?
Directly from the IRS.
7️⃣ Related Links
EA Summary:
Smart tax planning for self-employed sponsors considers not only tax savings, but also how income and documentation appear during immigration review.
Not sure whether your self-employed income is sufficient for Form I-864?
Reviewing your tax records before filing can help prevent avoidable delays.
This article is for general educational purposes only and is based on U.S. federal tax law.
Immigration outcomes depend on individual facts and agency discretion.
State tax rules may differ. Consult a qualified professional for personalized guidance.