US Tax Filing Basics for H-1B Workers and New Immigrants

Your first US tax season can feel bewildering after India's system. The good news is that for most H-1B workers it is fairly routine. Here is the map: who counts as a resident, which forms you file, and the traps newcomers from India hit most. This is general information, not tax advice.

Are you a resident for tax?

The US taxes based on tax residency, not your visa label. Most H-1B holders become US tax residents under the substantial-presence test, a day-count of your time in the US. Residents report worldwide income; non-residents report only US income. Your very first year can be part-year or dual-status, which is where many people get help.

The core forms

W-2: your employer's year-end summary of wages and taxes withheld, usually available by late January
Form 1040: the main individual return that US tax residents file
State return: most states levy their own income tax, filed alongside the federal one

FICA: Social Security and Medicare

As an H-1B worker your paycheck has Social Security and Medicare taxes (together called FICA) withheld, on top of income tax. These fund US retirement and health programs. Students on F-1 are often exempt from FICA for a period, but H-1B workers generally are not.

Deductions and the deadline

Most filers take the standard deduction rather than itemising. The federal deadline is generally April 15, with an extension available to file (though not to pay) later. If too much was withheld, you get a refund; if too little, you owe.

The forms newcomers forget

FBAR (FinCEN Form 114) if your foreign accounts together top 10,000 dollars at any point in the year
FATCA (Form 8938) above higher thresholds, filed with your return
An ITIN for a spouse or dependent who has no SSN but needs to be on your return

Our separate NRI taxes guide goes deeper on the India side and the treaty.

The bottom line

For most H-1B workers, US filing is a W-2, a Form 1040, a state return, and the foreign-account disclosures. Get the first, dual-status year right, and consider a cross-border professional if you still have Indian income or accounts. Confirm current thresholds and deadlines at irs.gov.