H-1B Visa Taxes: Resident vs. Nonresident Status
For federal income tax, you’re a resident alien (a non-citizen taxed like a US citizen) or a nonresident alien. Your status depends on the IRS residency tests.
| Test Results | Income taxed | Federal tax return | Social Security and Medicare | |
|---|---|---|---|---|
| Resident alien | Passes the green card test or substantial presence test | Worldwide income | Form 1040 | Generally owed |
| Nonresident alien | Passes neither test | Generally US-source income and income connected to a US business | Form 1040-NR | Generally owed |
The Green Card Test
You’re a resident for any year you held a green card (lawful permanent residency).
The Substantial Presence Test
Under IRS Publication 519, you pass if you were in the US for both of these:
- At least 31 days during the current year
- At least 183 days over three years, counting all days this year, 1/3 of last year’s days and 1/6 of the year before’s
On an H-1B, you count every day in the US, including partial days. The exempt-individual rules that let some students skip days don’t apply to you, so Form 8843 generally doesn’t either.
For example, 120 days in each of three years gives 120 + 40 + 20 = 180 days, which isn’t enough.
Most H-1B holders become residents, and nonresident status is mostly a first-year or short-stay situation.
Your First Year in the US
If you arrive midyear, you may be a dual-status alien (nonresident for part of the year, resident for the rest) and file a special return. Some newcomers can choose resident treatment for part of their first year, and Publication 519 lists the conditions.
Social Security and Medicare Taxes (FICA) for H-1B Workers
FICA is the federal payroll tax that funds Social Security and Medicare. You generally owe it from your first day of work, resident or nonresident. If you work in the US for a US employer, your employer must withhold FICA.
| Tax | Your rate | Wages it applies to |
|---|---|---|
| Social Security | 6.2% | First $184,500 |
| Medicare | 1.45% | All wages, no cap |
2026 rates from IRS Publication 15: Your employer pays a matching share. At the Social Security wage base, your maximum Social Security tax is $11,439.
If you were on an F-1 or J-1 visa, you may have been exempt as a student. That exemption ends when you switch to H-1B or when you become a resident alien. A totalization agreement with your home country can exempt you if you hold a certificate of coverage.
Withholding, ID Numbers and Tax Treaties
Withholding on Your Paycheck
Withholding is income tax your employer takes from each paycheck. You set it on Form W-4. Nonresidents follow special instructions in IRS Notice 1392.
SSN or ITIN
To file, you need a Social Security number (SSN), which you can generally get if you’re authorized to work. If you aren’t eligible for an SSN, you apply for an Individual Taxpayer Identification Number (ITIN), a number used only for taxes.
Tax Treaties
Some treaties can lower your US tax. If you claim residency in another country under a treaty’s “tie-breaker rules,” you’re treated as a nonresident and must file Form 8833. Residents face a “saving clause” that limits many treaty benefits, so check your country’s treaty with a tax pro.
H-1B Tax Filing Deadlines
Residents, and nonresidents with wages subject to US income tax withholding, generally file by April 15. Nonresidents without such wages generally have until June 15. State rules vary.
Sources
- IRS, Taxation of Alien Individuals by Immigration Status – H-1B
- IRS, Publication 519, U.S. Tax Guide for Aliens
- IRS, Employers Must Withhold FICA Taxes for Aliens Who Change Visa Status to H1B
- IRS, Publication 15, Employer’s Tax Guide
- SSA, Contribution and Benefit Base
- IRS, Aliens Employed in the U.S. – Social Security Taxes
