jammiie

Hi guys,

I did bring this topic up on another poster's thread back in February as a hypothetical but now my wife and I are out in the US I'm looking for more detailed answer.

I'm on L1-B visa and we arrived here a couple of months ago. My wife is L2 and has applied for EAD but that is still processing. Her old employer has recently got in touch and asked if she would like to do more work for him remotely as a freelancer (graphic design).

It is my understanding that from a tax perspective she could simply invoice him for time and then declare this as income on our US tax return at the end of the year.

The question we want further guidance on is if this would be allowed without the EAD? I thought that as she isn't working in the US marketplace that it might not effect it. She could even invoice in GBP and be paid into UK bank for a while until it comes through and then switch to USD and US bank once it has?

ian-mstm

No.


You think incorrectly. The sole criterion is where her physical body is when she's doing the work. How she gets paid, who pays her, or where the bank is are all irrelevant.

She can't work in the US without an EAD. She can, however, return to the UK to work.

Ian

jammiie

Thanks Ian, that makes sense.

How is volunteer work or interning viewed?

The purpose of the work would be more to keep her busy than as a source of income.

Nutmegger

If no one else is getting paid to do the work--e.g. serving at a soup kitchen or walking the dogs at the pound--it is acceptable.

Pulaski

Doing work for which it is customary to be paid is prohibited - which would leave unpaid interning as highly questionable, and IMO on the wrong side of the dividing line between what is, and is not permitted without an EAD. Generally speaking volunteering/ unpaid work should be confined to bona fide charities, such as animal shelters, soup kitchens, community clean-up projects, etc.

BTW if your wife chooses to flout the EAD requirements and take the work, she must declare the income and pay US income and payroll (SS, unemployment deductions, etc.) taxes. It is one thing to flout US immigration law, but a whole other matter to thumb your nose at the IRS!

Nutmegger

I'm guessing you hit the wrong quote button, seeing as you are preaching to the converted!

Pulaski

Er, yes.