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All About F1 to H1B Change of Status Tax Filing
May 7, 2022
3 mins
An open passport booklet with many visa stamps on its pages. It is topped with a stamp holder.

In this article, we discuss the following points:

  • An overview of tax-filing as an F-1 holder
  • Change from F1 to H1B tax filing
  • Consequences of failure to pay taxes

The US government taxes all citizens, residents, and non-immigrants at the local, state, and federal levels. All non-residents will be taxed on the income they earn in the US. Tax rates will depend on income level, state-wise tax laws, and the incumbent's entitled benefits on the tax treaty.

To understand F1 to H1B change of status tax filing, you should also know how H1B taxes work for H1B Visa Holders.

An Overview of Tax Filing for an F-1 Visa Holder

The F-1 visa

The F-1 visa is a non-immigrant visa that is education-based. It is one of the most popular choices for international students who wish to pursue higher education in the United States.

Filing tax returns as an F-1 holder

A student on an F-1 visa will be expected to file taxes with the IRS through the 8843 form within the IRS deadline. The following details will be required to complete your tax-filing process:

  • Name
  • Address
  • SS Number, or Social Security Number, or your IRS ITIN - the identity number of every taxpayer

The 8843 Form will have to be filed whether or not you have engaged in paid employment. Additionally, if you have been paid for work over the year, a 1040 NR Form may also be required to complete tax filing.

Tax-returns as an F-1 Holder: Taxes for Change of Status to H1B

No taxes are due for visa change from F1 to H1b visa. Once the transition is complete, the H1B may still be considered a non-resident alien for tax purposes - the H1B is not an exempt visa category. Filing taxes may include filing the 1040NR form at the concerned tax office.

H1B visa holders whose stay exceeds 183 days in the country will be taxed as residents and must file Form 1040 at the tax office.

Also Read: The Beginner's Manual on Change of Status From F-1 to H-1B

Consequences of Failure to Pay Taxes as an F-1 Holder

Failure to file tax returns will lead to unpleasant consequences for any individual liable to pay taxes and fails to do so. Fines and other penalties may be incurred as a repercussion.

If you find that you cannot file your tax returns within the IRS deadline, there is a provision to apply for a due-date extension. You will have to file the 'Automatic Extension of Time to File U.S. Individual Income Tax Return' application: Form 4868. This must be done within the original IRS deadline. With this extension, you will have your tax-return filing date extended. But you will have to include payment of dues and declare all tax liabilities in form 4868.

In conclusion

Filing tax returns while you live in the US will be within your best interests, regardless of your visa status. In many cases, non-immigrants or immigrant residents suffer the consequences of not realizing that they owe the government taxes. Consequently, they miss out on benefits like refunds they can claim when an excess amount has been deducted from their salary towards tax payment.

More importantly, filing taxes is one of the requirements for maintaining your visa status while in the US. Proof of filing tax returns will be necessary for any visa-related procedures like to make changes to your visa terms or re-entering the US after a time abroad. Lack of this proof could be a great risk to your visa or residency status in the US.

If you are looking for more information on getting the right start to your H1B visa journey to live and work in the US, visit TechFetch H1B.

**Disclaimer: H1B rules and regulations keep changing from time to time. For updated information, always refer to the USCIS official website.**

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Article by Techfetch H1B team

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