5 Legal Ways to Earn Passive Income on F1 Visa! Easy To Do Side Hustles.

As an F1 student, the pursuit of knowledge is undoubtedly your primary focus. But what if there was a way to make money while still excelling academically? In this article, we unveil the secrets of generating passive income for F1 students. From investments to online ventures, we delve into the realms of opportunity beyond the classroom. So, if you’ve ever wondered, “How can F1 students make money?” – get ready to discover the 5 legal ways of earning passive income on an F1 Visa and unlock the potential for financial prosperity while pursuing your educational dreams. 
 

5 Legal Ways to Earn Passive Income on F1 Visa 

1. Renting Out a Room 

This is the most popular approach for international students to make money abroad. It’s also the safest option if you hire property management firms to manage your home on your behalf. Of course, this implies you’ll need to pay for maintenance and tenant interaction, but you may make a profit from renting out a room. 

In this situation, you’ll need a social security number. You may face tax consequences if you don’t have one, which might cost you more money. 

2. F1 Visa Stock Trading 

Stocks are one of the oldest forms of investing. Stocks are a legal way to earn passive income if you have some knowledge of the stock market. However, considering day trading for F1 students you must make no more than four weekly transactions. Exceeding that limit is illegal for F1 visa holders. 

3. Writing  Manuscripts, Reports, and the Like 

Although you can’t submit your writing, such as books and manuscripts, to the United States for publication and profit, you may do so to other countries. 

For example, you may publish your work in the UK while earning money through royalties. In the United States, royalties are classified as passive income, allowing you to produce money as an F1 student lawfully. 

4. Entering Competitions 

Prizes you receive from competitions, including lotteries and cash prizes, are all considered passive income. This also applies to games that have nothing to do with your studies. Thus, you remain inside the law regardless of how much money you make. 

5. Real Estate Investment 

Investing in rental properties can be a lucrative source of passive income. If you have the means, you can purchase properties and rent them out to tenants. The rental payments you receive from your tenants can provide a steady passive income stream.

Earning passive income through legal means on an F1 visa is of utmost importance. It not only ensures compliance with immigration regulations but also provides financial stability and independence. By engaging in legal avenues like investing, renting, or earning royalties, F1 visa holders can enhance their financial well-being while staying within the boundaries of the law. These 5 legal way of earning passive income on an F1 visa offers a secure pathway towards achieving long-term financial goals, supporting educational expenses, and building a solid foundation for a successful future. 

Do F1 Visa Holders Pay Taxes? 

F1 visa holders in the United States are generally considered nonresident aliens for tax purposes. As a nonresident alien, you may be subject to certain tax rules and obligations. 

• International students who are employed or participating in internships through Optional Practical Training (OPT) are typically required to complete a W-4 form, especially if they receive compensation for their work.  

• The W-4 form is a tax document that new employees fill out when they are initially hired by a company, nonprofit organization, government agency, or other institution in the United States. At the end of the year, non-resident income earners submit their Form 1040-NR when filing their tax returns 
• Income for international students can take various forms, such as wages, salaries, tips, interest, dividends, certain scholarships or fellowship grants, and prizes or awards. 
•  If you have received any of these types of income from an internship or Curricular Practical Training (CPT) position, it is likely that you will need to report your earnings on your tax return.  

For earning passive income on an F1 visa the taxation can vary depending on several factors, including the specific type of income and any tax treaties between the United States and your home country. 

To learn more visit IRS.GOV 

On-Campus vs. Off-Campus Employment to Earn Passive Income on F1 Visa

On-Campus Employment

Within the realms of your student visa, you can engage in on-campus work for up to 20 hours per week during the school term and full-time (up to 40 hours per week) during breaks. Think university bookstores, cafeterias, or other affiliated facilities where you can lend a helping hand. 

To secure an on-campus job, you must apply through your DSO, ideally within 30 days before classes commence. You’ll receive a crucial letter of approval from your DSO, facilitating the acquisition of a Social Security Number (SSN). 

Off-Campus Employment

Venturing beyond the campus boundaries requires navigating a slightly more complex landscape. However, certain training programs open doors for F1 students seeking off-campus work experiences and opportunities for side hustle for international students. 

Off-campus employment takes place away from the school campus and is accessible to F1 students who have completed a full academic year of their program. Moreover, economic hardships that align with the Department of Homeland Security’s emergent circumstances criteria are necessary. 

Two programs cater specifically to gaining industry-related experience in Optional Practical Training (OPT) and Curricular Practical Training (CPT). To determine eligibility, discuss these opportunities with your trusted DSO. 

Understanding CPT, OPT, and STEM Extension 

Curricular Practical Training (CPT)

It refers to a form of practical training, such as work/study programs, internships, or cooperative agreements, that a sponsoring employer offers in collaboration with your college or university. CPT must be an essential component of your program of study and is not limited to the weekly 20-hour work restriction, allowing for full-time engagement. 

To be eligible for CPT, you must be an F-1 student and have completed a full academic year of study at a SEVP-certified school unless you are a graduate student with immediate CPT requirements. 

General Eligibility for CPT

• The training directly relates to your major field of study. 

• The training is an integral part of the established curriculum at your school. 
• Your designated school official (DSO) has authorized CPT in SEVIS, and the authorization is recorded on your Form I-20. 
• The CPT occurs before your program’s end date, as stated on Form I-20. 
• The authorization is specific to one employer and a designated time period. 
• You must secure the training opportunity before receiving CPT authorization. 

• CPT must be authorized before you commence work. 
• It is possible to have multiple CPT authorizations concurrently. 
• Engaging in one year of full-time CPT renders you ineligible for Optional Practical Training (OPT). 

Optional Practical Training (OPT)

It is a form of training, often paid, that directly aligns with your program of study. OPT can be pursued during your program (pre-completion OPT) or after completion (post-completion OPT). To determine the suitable option for you, consult with your DSO. 

General Eligibility for OPT

• The training directly pertains to your major field of study. 
• Your DSO recommends OPT in SEVIS. 

• Securing training is not mandatory before your DSO can recommend OPT. 
• The U.S. Citizenship and Immigration Service (USCIS) authorizes OPT and issues an Employment Authorization Document (EAD) to the student. 
• You can work for any employer as long as the training aligns with your major course of study. 
• OPT can occur before or after your program’s end date. 
• OPT periods cannot overlap. 

• When transitioning to a higher educational level, students are eligible for an additional 12 months of OPT authorization. 
• You can apply for 12 months of OPT at each education level (undergraduate, master’s). 
• If you are pursuing a degree in science, technology, engineering, or math (STEM), you may be eligible for the STEM OPT Extension. 

STEM OPT Extension

If you hold a degree in a Science, Technology, Engineering, and Math (STEM) field approved by DHS.gov, you have the option to request a 24-month extension for your Optional Practical Training (OPT). 

To be eligible for the 24-month OPT extension, you must fulfill the following criteria: 

• Have obtained a bachelor’s, master’s, or doctoral-level STEM degree from a college or university certified by the Student and Exchange Visitor Program (SEVP). 

• Currently engaged in a Post-Completion OPT period. 
• Intend to work or are currently employed by an organization that participates in the E-Verify program. 
• Both you and your employer have completed and signed Form I-983, titled “Training Plan for STEM OPT Students.” 

The 24-Month STEM OPT Extension provides an exceptional opportunity for STEM graduates to further their practical training and career prospects. By meeting the necessary qualifications and adhering to the prescribed procedures, you can leverage this extension to maximize your professional growth and contribute to the dynamic fields of Science, Technology, Engineering, and Math. 

Remember to consult with your DSO for guidance on the specific requirements and processes related to CPT and OPT. By understanding these opportunities, you can leverage work-integrated learning to enhance your educational journey and future prospects. 

What are the Work Restrictions for F1 Student Visas? 

The restrictions mentioned above are intended to safeguard the primary goal of an F1 student visa. You’re in the United States to study, not to make money. Therefore, you may only work up to 20 hours a week while your semester is in progress. 

This is so you won’t fall behind on your studies and get a bad grade because you didn’t study enough of time. This implies you can only take part-time employment during your semester even if you have a lot of free time on your hands. 

Don’t be concerned, though. If you want to generate passive income during your semester breaks, you can certainly do so. During your vacation, you’re allowed to work up to 40 hours per week. This means you may apply for full-time employment during this time. After graduation, they can work in an OPT (Optical Practical Training) program if authorized by the USCIS. 

Also Read: International Students Buying a House in the USA – Complete Guide 

Conclusion 

Earning passive income on an F1 visa is a smart strategy for international students to enhance their financial well-being while pursuing education. With dedication and the right skill set, F1 students can achieve financial independence and gain valuable entrepreneurial experience alongside their studies. By engaging in activities that comply with visa regulations, F1 visa holders can not only supplement their finances but also showcase their responsible and law-abiding nature.

Frequently Asked Questions

About the author:

Debjit Saha is the Co-Founder and Chief Technology Officer of HomeAbroad. With a passion for technology and a deep understanding of US immigration laws, he strives to empower individuals in their journey to the United States. He is also a Certified Immigration Expert.

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