H1B and L1 Visa Tax Filing
Once you become a US tax resident you are taxed on worldwide income, not just your US salary. The first filing year is where most H1B and L1 holders get it wrong.
H1B and L1 Visa Tax Filing with EvoTax
H1B and L1 holders usually become US tax residents through the substantial presence test, and residency changes the return fundamentally: you are taxed on worldwide income and you acquire foreign asset reporting obligations. Income and accounts left behind in your home country — salary earned before you moved, bank interest, rental income, mutual funds, provident fund balances — come into scope in ways people rarely expect. Your arrival year is the hardest, because you may be dual-status or may be better off making a first-year choice, and the two produce materially different tax. EvoTax establishes your residency position, decides which treatment leaves you better off, reports foreign income with any treaty relief or foreign tax credit available so you are not taxed twice, handles FBAR and FATCA disclosure, and obtains ITINs for a spouse or children who need them.
Benefits & What You Get
Arrival-year position optimised
Dual-status filing versus the first-year choice can differ substantially. We compute both and file the better one.
Worldwide income handled correctly
Home-country salary, interest, rent and investments are reported properly rather than omitted or double-taxed.
Double taxation relieved
We apply the foreign tax credit and any treaty article so tax already paid abroad is not paid again.
Foreign accounts disclosed
FBAR and Form 8938 obligations are identified and filed, which is where the harshest penalties sit.
ITINs for family
We obtain ITINs for a spouse or dependents without a Social Security number so you can file the way that suits you.
How It Works
Establish residency
We calculate your status from your entry dates and prior presence, including dual-status and first-year-choice options.
Map worldwide income
We collect home-country income and account details and identify what must be reported and disclosed.
Optimise and prepare
We apply treaty relief and foreign tax credits, prepare the return, and file required disclosures.
File and plan ahead
We e-file, then flag what to change in withholding or structure before the next year.
Pricing
Form 1040 with foreign income reporting
Arrival year with both options computed
Foreign account and asset disclosure
Per spouse or dependent
Final pricing depends on the complexity of your case. Contact us for an exact quote.
Frequently Asked Questions
Am I a US tax resident on an H1B?
Usually yes, once you meet the substantial presence test — broadly 183 days on the weighted three-year calculation. Unlike F and J visa holders, H1B and L1 holders are not exempt individuals, so your days count from the start. In your first year you may be resident for only part of the year, which is what makes that return more complex than the ones that follow.
Do I have to report income from my home country?
As a US tax resident, yes — the US taxes residents on worldwide income. That includes salary earned abroad, bank and deposit interest, rental income, dividends and capital gains, whether or not the money is brought into the US. Reporting it does not necessarily mean paying US tax on it twice; the foreign tax credit and treaty provisions usually relieve most or all of the double taxation, but the reporting itself is not optional.
What is the first-year choice and should I make it?
It is an election that lets you be treated as a resident from a chosen date in your arrival year rather than filing dual-status. It can be advantageous because residents get the standard deduction and can file jointly, but it also pulls more worldwide income into the US net. Which is better depends on how much foreign income you had before arriving and whether you have a spouse to file with. It is worth computing rather than defaulting.
Do I need to report my foreign bank accounts?
If the combined highest balance of your foreign financial accounts exceeded $10,000 at any point in the year, you must file an FBAR with FinCEN. A separate obligation, Form 8938 under FATCA, applies at higher thresholds and is filed with your tax return. Penalties for not filing an FBAR are severe and are assessed per account per year, which is why we treat this as a required check rather than an add-on.
Can I file jointly with a spouse who has no SSN?
Yes, by applying for an ITIN for them on Form W-7, usually submitted together with the tax return. Filing jointly gives you a larger standard deduction and generally better brackets, so for a single-earner household it is normally worth doing. If your spouse is a non-resident, electing to treat them as a resident for tax purposes brings their worldwide income into scope as well, which we weigh before recommending it.
Ready to get started with H1B and L1 Visa Tax Filing?
Talk to an EvoTax expert today. Free consultation, transparent pricing, no obligation.