H-1B Visa Tax Guide: U.S. Tax Obligations and Filing Tips

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.

1. Taxes You Owe on an H-1B Visa

H-1B visa holders generally pay the same taxes as U.S. citizens:

1) Federal Income Tax

Your U.S. employer withholds federal income tax from each paycheck. The amount depends on your salary and the information you provide on your W-4 form. This is filed annually via Form 1040 or 1040NR.

2) Social Security and Medicare (FICA) Taxes

H-1B holders must pay FICA taxes — 6.2% for Social Security and 1.45% for Medicare. Your employer also matches these contributions. Unlike F-1 students, there’s no FICA exemption.

3) State and Local Taxes

Depending on where you live and work, you may owe state or local income tax. States like California and New York impose state income tax, while others like Texas do not.

2. Common Tax Forms for H-1B Filers

3. Tax Deductions & Credits for H-1B Holders

Once you're classified as a resident alien, you can claim several benefits:

• Standard Deduction ($14,600 for single filers in 2024)

• Child Tax Credit (if child has SSN)

• Education Credits (if you or your spouse pay for U.S. college tuition)

• Student Loan Interest Deduction (if repaying student loans)

• Foreign Tax Credit (if you pay taxes on income from your home country)

• IRA/401(k) Contributions – Reduce taxable income

Nonresidents (Form 1040NR) have fewer options, typically limited to itemized deductions like state taxes and U.S. charitable donations.

4. Common Filing Deadlines

• January 31 – Receive W-2 from employer

• April 15 – Federal and most state returns due

• October 15 – Extended filing deadline (if you request one)

5. Filing Tips for H-1B Professionals

1. Use Reliable Software – TurboTax, H&R Block, and TaxAct support resident filings. For 1040NR, consider Sprintax

2. Hire a CPA for dual-status years, foreign income, or if you’ve changed visa types.

3. Track your entry/exit dates to calculate tax residency accurately.

4. Report all income, including side gigs, interest, or foreign accounts.

5. Avoid double taxation using the Foreign Tax Credit or a tax treaty.

6. Contribute to retirement plans early to reduce taxable income.

6. Final Thoughts

Understanding your tax obligations as an H-1B worker, especially after coming from F-1 or OPT status, can help you avoid penalties and maximize your refund. Know your residency status, file on time, and claim any deductions or treaty benefits you qualify for. If in doubt, seek professional help.