AI agents for business finance: what they can and can't do
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The short answer
An H-4 spouse can only work once USCIS approves Form I-765 and issues an EAD; until then, freelancing for anyone, Nigerian clients included, is unauthorised. The 2015 rule that created the H-4 EAD describes it as evidence of authorisation to work for any employer, which is why it is widely used for freelance and contract work, but the EAD only lasts as long as your H-4 status and your eligibility do. The income is then taxed in the US like any other self-employment income.
What the H-4 EAD actually authorises
The H-4 EAD came from a Department of Homeland Security rule published on 25 February 2015 and effective from 26 May 2015. It extended work authorisation to H-4 spouses of H-1B workers in two situations: the H-1B worker is the main beneficiary of an approved Form I-140 immigrant petition, or the H-1B worker has been given extended H-1B status under sections 106(a) and (b) of the AC21 law. If your spouse fits neither, you have no route to an H-4 EAD, however long you have been in the US.
Authorisation is not automatic. The rule requires you to apply on Form I-765, and the regulation listing who may work, 8 CFR 274a.12(c), says people in that category may work only after USCIS grants the application, and then only within any restrictions in the regulations or on the card. The H-4 category is listed as (c)(26).
On scope, the 2015 rule describes the card as evidence of employment authorisation "to lawfully work in the United States for any employer" and says an EAD generally authorises employment without regard to employer. That is the key difference from your spouse's H-1B, which is tied to the sponsoring company's petition. The rule text we read does not separately spell out self-employment, so if your freelance work is substantial, or you plan to set up an LLC and take on staff, confirm your exact plan with an immigration lawyer before you invoice.
Before the card arrives
This is where most problems start. Many Nigerians on H-4 are approached by former colleagues, churches or family businesses at home with "small jobs": a pitch deck, a payroll clean-up, a website. Doing that work while you are physically in the US, before your EAD is valid, is work without authorisation, even if the client is in Lagos and pays into a Nigerian account. Under 8 CFR 214.1(e), unauthorised employment by a nonimmigrant counts as a failure to maintain status, which can affect your H-4, future extensions and a later green card application.
- Do not start client work on the strength of a pending I-765 alone.
- Check the validity dates printed on the card and diarise the expiry.
- If your spouse changes employer or their H-1B is not extended, your H-4 and your EAD eligibility can change too. Ask your lawyer what happens to your work in that gap.
- Keep copies of your EAD, I-797 notices and I-94 with your business records.
Setting up the freelance side
Once the card is valid, the practical set-up looks like any other freelancer's. A Nigerian client will usually want a written agreement, an invoice in a currency they can pay, and sometimes your tax details for their own records. Agree in writing on scope, deliverables, currency (naira or US dollars), payment dates and who bears bank charges. Our guide to contract points for Nigerian clients covers the clauses that matter most.
Many H-4 freelancers start as sole proprietors and later form a single-member LLC. The IRS treats a single-member LLC owned by an individual as disregarded by default, so the income still goes on your own return, generally on Schedule C. Whether an LLC is worth it for a freelancer depends on liability, client expectations and state fees.
Tax: two countries can touch the same fee
In the US
If you are taxed as a US resident, the IRS taxes your worldwide income, so a fee from a Lagos client counts in exactly the same way as a fee from a client in Houston. Net self-employment earnings of $400 or more also bring self-employment tax of 15.3% (12.4% Social Security and 2.9% Medicare), reported on Schedule SE, per the IRS page updated 27 June 2026. If you expect to owe $1,000 or more when you file, the IRS says you generally need to make estimated payments during the year; see quarterly estimated taxes.
In Nigeria
A Nigerian company paying a non-resident for consultancy, technical, management or professional services generally deducts withholding tax at 10% under the 2024 withholding regulations, according to PwC's Nigeria summary reviewed 29 May 2026; other services carry 5% for non-residents. Ask the client for the withholding tax receipt every time. The US does not have an income tax treaty with Nigeria, so there is no treaty rate, but a foreign tax credit may be available for qualifying Nigerian tax, within the IRS limitation formula.
| Example: one invoice | Amount |
|---|---|
| Fee agreed with Lagos client (example) | $3,000 |
| Nigerian withholding tax if treated as professional fees at 10% | $300 |
| Paid to you before transfer costs | $2,700 |
| Gross income you report in the US | $3,000 (the $300 may support a foreign tax credit claim) |
The example is illustrative only. Whether a credit is allowed, and how much, depends on your whole return.
What to check first
- Your spouse's basis: approved I-140 or AC21 extension. No basis, no H-4 EAD.
- Your I-765 approval and the card's validity dates. No work before the start date.
- Your written plan for the business, checked by an immigration lawyer if it goes beyond simple freelancing.
- A contract and invoice that state currency, payment date and withholding tax treatment.
- A record system for each payment, withholding receipt and exchange rate used.
Where Pryme fits
A Pryme Business Account can be opened from the US and holds NGN, USD, GBP and EUR with local account details for each, so a Nigerian client can pay you in naira and a US client in dollars. Money stays in the currency it arrived in until you choose to Swap; the app shows the rate and the fee before you approve. Invoicing lets you bill in either currency. Outside Nigeria, Pryme's financial activities are carried out through regulated partners.
Questions people ask
Can I freelance on H-4 without an EAD?
No. Without an approved EAD, work you do while in the US is unauthorised, even for a Nigerian client paying into a Nigerian account. Unauthorised employment is treated as a failure to maintain status under 8 CFR 214.1(e).
Does an H-4 EAD let me work for more than one client?
The 2015 rule describes the H-4 EAD as evidence of authorisation to work for any employer, which is why it is used for multiple clients and contract work. Confirm any business plan beyond simple freelancing with an immigration lawyer.
Do I pay US tax on money from Nigerian clients?
If you are taxed as a US resident, yes: worldwide income is taxable, and net self-employment earnings of $400 or more also bring self-employment tax.
My Nigerian client deducted 10%. Is that right?
For professional, consultancy, technical or management fees paid to a non-resident, 10% is the rate in PwC's summary of the 2024 regulations. Ask for the withholding tax receipt; it is your evidence for any US foreign tax credit claim.
Sources
- Federal Register: Employment Authorization for Certain H-4 Dependent Spouses (final rule, 25 Feb 2015, effective 26 May 2015) · accessed Oct 2026
- 8 CFR 274a.12, Classes of aliens authorized to accept employment (Cornell LII) · accessed Oct 2026
- 8 CFR 214.1, Requirements for admission, extension, and maintenance of status (Cornell LII) · accessed Oct 2026
- IRS: Self-employment tax (Social Security and Medicare taxes), updated 27 Jun 2026 · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate withholding taxes (reviewed 29 May 2026) · accessed Oct 2026
- IRS: United States income tax treaties A to Z, reviewed 3 Jan 2026 · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.