How to Make Passive Income on H-1B Visa (2024)

An H-1B visa is a non-immigrant visa that allows foreign workers to temporarily work in the US in specialty occupations. While this visa is typically associated with full-time employment, there are ways for H-1B visa holders to generate passive income while in the US.

In this article, we will explore several options for making passive income while on an H-1B visa in the United States.

Passive income on H-1B Visa

Invest in stocks or mutual funds:

Investing in stocks or mutual funds can be a great way to generate passive income. However, it is important to research and understand the risks involved, as well as any tax implications for foreign investors. Additionally, H-1B visa holders should ensure that they are following all applicable laws and regulations related to foreign investment.

Rent out property:

If you own property, renting it out can be a great way to generate passive income. This is considered h1b passive income and is permitted (and this is different from managing multiple Airbnb apartments, which would be considered productive work, which is not permitted).

Participate in online surveys or market research:

Participating in online surveys or market research can be a great way to generate some extra income. Many companies and research organizations pay for participants to take surveys or provide feedback on various products and services. Just be aware that the amount of money you can earn from this type of passive income will likely be limited.

Invest in a high-yield savings account:

While this option will not generate a large amount of passive income, it is a safe and easy way to earn some extra money. High-yield savings accounts offer interest rates that are higher than traditional savings accounts, allowing you to earn more money on your deposits.

Rent out your car when not in use:

This one is similar to renting out your property to someone or listing it on Airbnb. However, don't make a business out of it by buying a bunch of cars and renting them all out. That would be considered unlawful work by the USCIS. Similar to Airbnb, any income earned by renting out a car is also taxable.

Be an angel investor:

As long as you are not involved in the day to day running of the company, you can draw passive income from investments. In order to be an angel investor, you must meet certain income restrictions. These restrictions were lowered in 2017 to permit both accredited and non-accredited investors to invest in startups.

An accredited investor is someone who has an annual income over $200K per year and a net worth over $1M, excluding the primary residence. Prior to 2017, only accredited investors were permitted to be angel investors. That bar has been lowered but there are still restrictions. If you are a non-accredited investor and have an annual income or net worth of less than $100,000, then you can invest the greater of $2,000 or 5 percent of the lesser of your annual income or net worth. If you have more than $100,000, then you can invest 10 percent of the lesser of your annual income or net worth. Here’s an IRS guide about who and how you can make private investments of this nature.

Some FAQs:

Please check out this video we've created on our YouTube channel where we cover a lot of FAQs too.

Some of the FAQs covered in the video are:

In conclusion, there are several options for H-1B visa holders to generate passive income in the US. Whether you choose to invest in stocks or mutual funds, rent out property, participate in online surveys or market research, participate in affiliate marketing, or invest in a high-yield savings account, it is important to thoroughly research your options and understand any applicable laws and regulations. Additionally, it is important to consult with a financial advisor to ensure that you are making the best choices for your personal financial situation.