If you’re working in the U.S. on an H-1B visa, understanding your tax obligations is essential - especially if you’re transitioning from F-1 student or OPT status.This guide breaks down everything you need to know, from what taxes you owe to how to file, what deductions you can claim, and key deadlines to watch.
D/S = Duration of Status, a special rule for F-1 student visas.
When entering the U.S., your I-94 usually says D/S, which means your status stays valid as long as you’re enrolled, plus a 60-day grace period after graduation.
Under the new proposal, the Department of Homeland Security (DHS) would eliminate “Duration of Status” (D/S) for F-1 students and instead implement a Fixed-Term Admission policy. This means that, rather than being allowed to remain in the U.S. for as long as they maintain their student status, international students would be granted entry for a specific, predetermined period as listed on their I-94 record.
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Item
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Old Policy (D/S)
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New Policy (Fixed-Term Admission)
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Status Duration
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Valid as long as enrolled; 60-day grace period after graduation
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Maximum 4 years (linked to I-94); extensions require filing Form I-539 + biometrics
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Post-Graduation Grace Period
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60 days
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30 days
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Extension Cost
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Not required
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$370–495 per filing + $85 biometrics fee
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Flexibility / Multiple Master’s Degrees
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Students could pursue multiple Master’s programs
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Almost no legal path for a second Master’s; flexibility to study multiple Master’s degrees is lost
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OPT/STEM OPT
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60-day grace period after graduation; simple application process
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Tighter timelines; if I-94 expires before filing I-539 → unlawful presence; grace period after OPT is only 30 days
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PhD Master-Out Option
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Allowed to exit early with a Master’s
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Master-Out may no longer be permitted
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Under the fixed-term system:
If you miss the I-94 deadline and don’t file I-539 → unlawful presence starts immediately.
If you file on time → you’re in “authorized stay,” not unlawful.
If I-539 is denied and I-94 has already expired → you must leave right away, or unlawful presence begins (could trigger a 3-/10-year bar).
Transition rule: For the first 6 months after the rule takes effect, students applying for OPT/STEM OPT on time can skip the first EOS (only need I-765). DHS can extend this waiver in 6-month increments.
Current students: Must graduate on time, no easy program changes. If studies exceed I-94, need EOS → more restrictions.
Second Master’s students: Almost no legal pathway to do another Master’s. Flexibility drops, can’t pivot careers, can’t extend status.
OPT students: Less time to job-hunt and file paperwork; higher risk. STEM OPT may need additional EOS, adding extra steps and costs.
PhD students: Master-out (exiting early with an MA) may no longer be allowed.
Public comment period closes → Sept 29, 2025.
Final rule → likely late 2025 or early 2026.
Effective → expected mid-2026, with a 6-month OPT transition period.
Or simply visit the page: https://www.federalregister.gov/documents/2025/08/28/2025-16554/establishing-a-fixed-time-period-of-admission-and-an-extension-of-stay-procedure-for-nonimmigrant
📣 Anyone can comment—even F-1s, not just citizens. You can stay anonymous.
👉 Submit your opposition to push DHS to delay or adjust the details!