H1B passive income – make money outside of your main job

The H1B visa program gives foreign workers a chance to temporarily work in the US. But what if you want to make some extra cash on the side? That’s where H1B passive income comes in. Passive income is money you make with minimal effort once you’ve set things up. In this guide, we’ll dive into different ways H1B visa holders can legally and responsibly generate passive income.

Know the Restrictions:

Before we jump into H1B passive income, let’s get one thing straight. H1B visa holders can only work for the employer specified on their I-129 petition. Working outside of that can lead to serious consequences like visa cancellation or even deportation. So, be sure to play by the rules while exploring additional income opportunities.

Passive Income Ideas for H1B Visa Holders:

Investing in Stocks and Cryptocurrency: Putting your money in the stock market or cryptocurrency can bring in passive income. Just make sure it’s not your main gig, as day trading professionally might not be allowed. Check with your employer’s compliance department to stay on the safe side.

Rental Income: Renting out a room in your home through platforms like Airbnb can count as passive income. Remember to report your rental income and losses on Form 1099-MISC and meet your tax obligations.

Car Rental: If your car is sitting idle, why not rent it out through services like Turo? It’s another way to make passive income. But keep in mind, managing multiple cars purely for income might cross the line into unauthorized work. Make sure to report your earnings on Form 1099-MISC and follow tax regulations.

Angel Investing: H1B visa holders can make passive income by investing as angel investors. Just make sure you’re not heavily involved in the company. Familiarize yourself with income restrictions and guidelines for angel investing.

Online Gambling: Although we don’t recommend it, H1B visa holders can engage in online gambling and potentially win some money. However, keep in mind that online gambling may be illegal in some states. Get to know the IRS guidelines on gambling winnings and losses.

Bank Account Bonuses: Some banks offer bonuses for opening new checking accounts. If you meet the requirements, you can earn passive income through these bonuses. But remember, each bank may have specific criteria, like a minimum deposit or direct deposit requirements.

Carpooling: Need a ride? Sharing a ride through apps like Waze Carpool or Scoop can help you earn passive income by splitting expenses. H1B immigrant workers are allowed to participate in these programs and get reimbursed for mileage. Familiarize yourself with the reimbursement rates and guidelines provided by the carpooling service.

Gifts: H1B visa holders can receive tax-free gifts of up to $15,000 worth of US-situs assets under the “gift tax exclusion.” Keep in mind that different rules may apply if you receive non-US-situs assets from abroad. Be sure to comply with gift tax regulations and reporting requirements.

Understanding the Tax Side:

Generating passive income as an H1B visa holder comes with tax responsibilities. Make sure you understand and fulfill your tax obligations for your passive income activities. Generally, passive income is taxable, so accurately report your earnings to the IRS.

FAQs about H1B Passive Income:

Can I invest in Bitcoin or other cryptocurrencies on an H1B visa?

Yes, you can invest or day trade in Bitcoin or other cryptocurrencies as a hobby. Just make sure it’s not your main job or source of income.

Can H1B visa holders play lotteries like Powerball or Mega Millions?

Lottery winnings count as passive income and are permitted for H1B visa holders. But keep in mind that there may be additional tax obligations for lottery winnings.

Is H1B passive income treated the same as W2 income?

Generally, passive income is treated similarly to W2 income when it comes to tax obligations. Report all sources of income and fulfill your tax responsibilities accordingly.

Can I keep earning passive income from a blog while on an H1B visa?

Earning passive income from a blog can be a gray area. If your blog is generating income, it might be considered unauthorized work and could affect your visa status. Consult an immigration attorney for the best course of action.

Can I sell personal items like an iPhone on platforms like Craigslist or eBay?

Selling personal items on platforms like Craigslist or eBay is generally allowed and considered incidental income. However, regularly selling a large volume of items might be seen as unauthorized work. Stick to occasional sales that don’t make up a significant portion of your income.

Can I get paid for babysitting while on an H1B visa?

Babysitting for pay is generally considered unauthorized work. However, if you’re babysitting for an immediate family member and they decide to give you money as a gift, it might be allowed. Be aware of gift tax regulations and limitations.

What if I receive unexpected income that requires a Form W-9 or Form 1099?

Incidental income that requires a Form W-9 or Form 1099 is usually not penalized. However, engaging in multiple instances of such income-generating activities might raise questions about unauthorized work. Be cautious and consult an immigration attorney if needed.

Can I pursue hobbies while on an H1B visa?

Generally, hobbies are allowed on an H1B visa as long as they’re not primarily for profit. But if your hobby becomes a dedicated income-generating activity, it might be seen as unauthorized work. The IRS considers various factors to distinguish between hobbies and business activities.

Can I work as a freelancer or independent contractor on an H1B visa?

Working as a freelancer or independent contractor is generally considered unauthorized work for H1B visa holders. You’re only authorized to work for the employer listed on your Form I-129 petition.

Good luck!

H1B passive income can open up doors for visa holders to boost their earnings while staying within the visa restrictions. By exploring different avenues like investments, rentals, and other passive income streams, H1B visa holders can responsibly improve their financial situation. Remember to understand and follow the limitations imposed by your visa, and always consult professionals if needed.