Online Income on H1B

[pranilrao]

Dear Gurus,

I am in the 3rd year of my H1B and my wife joined me last month on H4 visa.
She has started her own website which could lead to earning some money. The website can be used to sell products online and we are planning to use google adsense as well.
However since she is on H4, we will need to use my SSN for tax purposes, which I think is not allowed on H1.
Do you think that will be an issue?
The amount we are looking at is should not be more than $300-$400 monthly or may be less as well.
I would also like to let you know that my Green Card process is also going on with Labor approved. I have also read that as online income for H1Bs is not allowed, doing such a thing can be a problem at later stages in the green card process.

Thanks,
Pranil

[immihelp]

This is illegal and not allowed.

[pranilrao]

thanks a lot Admin.

Even if the income is shown in India its illegal?

Thanks a lot for all the assistance!

[immihelp]

Yes, it is illegal.

If you are working in the US and diverting that income to India because you don't have work permit, you are not only getting into immigration problem, but also tax problem with IRS. Income earned in the US can't really be shown in India.

[pranilrao]

Thanks Admin for all the information!

[athard]

Okay, I am not suggesting that you do this, but I have a friend who has done it for 2 years now, and has been successful. it is up to you how you risk it.

My friend opened up an ICICI bank account in his fathers name and the entire site is all in his fathers name. he does all the work here and all sales are registered in his fathers name. When google sends a check to india, his father deposits it in the bank and send him checks. he even has a debit card from that bank which he occasionally uses to withdraw money in the US. Legally, my friend is not doing anything to earn income online, his father is. his father also pays income taxes for this income.

now, personally, i wouldn't risk it, but it is up to you.

[immihelp]

What you are suggesting is illegal. Father is collecting money for the work son is doing in the US. You are working in the US without proper authorization. That means you are violating immigration law and tax law by not paying taxes on them.

[txh1b]

Have you heard of Al Capone? If not look up in wiki-pedia. Al Capone was a big gangster and he was NOT convicted of criminal activities but for tax evasion.

IRS is one organization that will follow one to the grave.

[kabkaba]

All this may be true. But, if the website is duly registered in India it could all be done legally to earn some extra bucks. Again just a suggestion.

[immihelp]

All this may be true. But, if the website is duly registered in India it could all be done legally to earn some extra bucks. Again just a suggestion.

The web site is registered in India does not matter.

The problem is that
* The person is working in the US without work authorization. Immigration problem.
* For the income generated based on the work done in the US, the perrson is not paying income taxes in the US. IRS problem.

There are so many Indian companies that are registered in India have operations in the US. And they all have to pay taxes in the US for the income generated in the US.

Please note that no one is thief until caught.

[txh1b]

All this may be true. But, if the website is duly registered in India it could all be done legally to earn some extra bucks. Again just a suggestion.

It is immigration law and tax law violation for sure.

[helpseeker123]

Yes, it is illegal.

If you are working in the US and diverting that income to India because you don't have work permit, you are not only getting into immigration problem, but also tax problem with IRS. Income earned in the US can't really be shown in India.

May be too late to ask.
But if everything is registered on father's name and the father is paying income tax in India, we can consider that son/daughter is volunteering because they are not actually earning anything out of that work done.

Is volunteering illegal ?

[raghvi]

May be too late to ask.
But if everything is registered on father's name and the father is paying income tax in India, we can consider that son/daughter is volunteering because they are not actually earning anything out of that work done.

Is volunteering illegal ?

Volunteering means working for a non profit entity. If your business is making money how is it volunteering? You are using your expertise to work and this work is what is fetching money. Now if the money goes into your father's account or any other it doesnt matter, it was your work which fetched the money in first place. And if you are doing this while being on US soil you need proper authority to do so.

If IRS/Immigration official come to know about it you will be penalized.

Now whether USCIS/IRS are actively searching for such offences or they feel it worthwhile financially to pursue such offences is a different discussion.

This is my opinion not legal advice.