What types of income can H-1B holders have? This article will explain the acceptable and unacceptable categories of income.
The types of income allowed under H-1B status are strictly regulated. Even if you have time for part-time jobs, you must be cautious to avoid earning from improper sources, as this could jeopardize your H-1B status.
Unacceptable Income
- Income from Non-H-1B Work: H-1B visa holders are prohibited from earning income from unauthorized work. They can only work for the employer who sponsors their H-1B visa and receive compensation from that employer.
- Self-Employment Income: Generally, H-1B visa holders are not allowed to be self-employed. They cannot start their own business and earn income from it.
- Income Below Market Wage: The salary of H-1B visa holders must meet the wage level specified in the Labor Condition Application (LCA). This is typically the average salary for the H-1B holder's job position in the specific area.
- Income from Illegal Activities: Earning income from any illegal activities is prohibited.
- Unreported Income: All income must be reported to the Internal Revenue Service. H-1B visa holders must adhere to U.S. tax laws.
Acceptable Income
- Passive Income: H-1B visa holders can earn passive income from investments such as dividends or interest, as these are not considered "work." However, active involvement in the management or operations of these investments may violate H-1B terms. Examples of passive income:
- Stock Market Investments
- Real Estate Investments
- Interest Income
- Royalties
- Dividends
- Part-Time Work: H-1B visa holders can take on part-time work with "concurrent H-1B", but it must be with their current H-1B employer or another employer who sponsors an H-1B visa for them. It is not permitted to earn income from part-time work not approved by USCIS.