What is the taxation status of H-1B workers?
H-1B workers are legally required to pay the same taxes as any other U.S. resident, including Social Security and Medicare. Almost any person who spends more than 183 days in the U.S. in a calendar year is a tax resident and is required to pay U.S. taxes on their worldwide income. The exceptions to this rule are very few in number; they include the case of students on F-1 and people who would like to leave the U.S. but are prevented from doing so by a medical problem. From the IRS perspective, it doesn’t matter if that income is paid in the U.S. or elsewhere. If an H-1B worker is given a living allowance, it is treated the same by the IRS as any other U.S. resident.
