It is either ACTUAL income, i.e. what he is currently earning, or the income reflected on his most recent tax returns.
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It is either based on his prior return, or actual income he can show that he earned
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You use his current income but indicating monthly and not annually; Keep in mind that USCIS is allowed to rely on the previous year income tax
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It's current individual income. If the individual income is not enough, he has to find a joint sponsor.
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You can use his most recent annual federal tax filing at a minimum. The Immigration Service can look at your last 3 years of filings at most. I see no need to offer projected earnings for 2013 unless you are lacking sufficient past earnings to demonstrate financial ability in accordance with the poverty income guidelines set by the government.