CAN YOU MAKE MONEY ONLINE WITHOUT A WORK PERMIT?
Is it Legal to Make Money on YouTube, Blogs, Driving for Uber, or Sell Online?
Before coming to the U.S., you should’ve heard numerous times that you cannot legally work in the United States without work authorization. If you are authorized to work in the United States, you should have what is called an Employment Authorization Document. If there are restrictions to the type of job you can have, which is likely the case if you’re on OPT or have been issued an H-1B visa for example, then the USCIS prohibits you from working other jobs which includes being a private contractor.
If you are in the United States as a student on an F-1 visa, you’ve probably submitted documents to prove that you have enough funds to cover your living expenses on top of your tuition. In order to study in the U.S. on a student visa, the government requires you to have sufficient savings up front for the duration of your stay unless you adjust your status into one that allows you to work. As your reason for coming to the U.S. is to study, you may face serious consequences including deportation if you are found acting otherwise.
When you monetize your Youtube videos or add ads in your blog or website through AdSense or other affiliate programs, you are working as an independent contractor. Therefore, it constitutes work that you are not supposed to be doing without a work permit and the same goes to those who aren’t allowed to work for anyone that isn’t registered on your work authorization terms.
From time to time, we would see YouTubers or bloggers who clearly state that they are students on F-1 visas and still place ads on their platforms. By doing so, they are making it visible to the public that they are violating their terms of their visas. If the public can see it, it simply means that the USCIS and ICE can discover that they are in violation as well. Will the USCIS deport them or not is a different issue, but they have every right to if they gather enough credible evidence.
Does IRS Report Tax Information to USCIS ?
When monetizing your online platform as a partner in the United States, the affiliate programs should have required you to report your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). The IRS reports certain information to the SSA, but according to an article by ACLU written in April 2018, the IRS is restricted from sharing information with other agencies including the Department of Homeland Security. In its article, ACLU also claimed that the Trump Administration may plan on using tax information in the future to enforce immigration, but as of May 2019, we have neither found any information that lead us to believe that such strategies have been used by the administration nor any that suggest changes in the law books so far.
Such policies are subject to change though, and American Lifestyle in no way promotes our readers to violate the terms affixed to their visa statuses especially when they are already self-sufficient to focus on their academics or work.
This is where the situation falls into the shades of grey. If you register your platform and bank accounts at your home country, you will not be earning any income within the United States. At the same time, the physical work is being performed in the U.S., so we could technically interpret the situation to conclude that you are indeed working in the United States without a valid work permit.
If you are simply uploading videos to YouTube or writing blogs without receiving any sort of income, you wouldn’t have any issues as you are simply doing so out of your interest. When you monetize these platforms, you are suggesting that at least a part of your reason for uploading contents is to make money during your stay in the U.S. regardless of where your income flows into.
Some could get smart and establish a system where a close friend or a family member would upload their contents in their home country and receive income on their behalf, but this is obviously not a strategy or experience you would like to brag about to your interviewer when, say, adjusting your immigration status as what you’re implying is “I found a way around your system.”
When dealing with circumstances like these, we would highly advise you to consult an immigration attorney to discuss your options.
Can I Drive for Rideshare Programs Like Uber and Lyft?
Uber and Lyft are no longer seen as the system where you’d be riding with a friend and reimbursing them for gas and mileage. Driving for rideshare is a legitimate occupation now in which the companies have policies, payout plans, and are based on structures comparable to those of any other transportation business. Just as you would be when you sign up for affiliate programs online, you would become an individual contractor when you drive for rideshare agencies. We’re pretty confident to say you cannot legally become an Uber driver if you are not authorized to work in the United States or if your status only qualifies you to work under a certain employer.
Yes and no. If you’re selling a textbook on Ebay that you don’t need anymore after a school semester, then you really shouldn’t have any problems. When selling items online, you would want to hold onto the receipts of the items to prove that you were indeed not making any income and were only getting rid of the items you no longer needed for a price that was considerably less than what you bought it for.
If you are making a profit off of your sales, then that would be considered income, so you would be violating immigration policies. You would not be able to purchase a bunch of used books, mark up the prices, and then resell them because then you’d be running an online business.
Also, note that you may need to report your SSN or ITIN to create a seller’s account for tax purposes, so there is a chance that you won’t be able to create an account to begin with.
What is a Passive Income?
Passive income is a type income that you would receive without doing any work. Renting out your vacation house you own in the U.S. or renting out an extra room are examples of passive income. These are completely legal, but you may want to consider talking to a tax attorney and/or an accountant (CPA) as you will need to report passive income. It could get a little more complicated when you’re on an F-1 visa because your primary reason of staying in the U.S. is to study, and you’ll most likely need to apply for an ITIN to file your taxes. Again, you would want to consult an immigration lawyer who would help you with your specific needs.
Other examples of passive income includes selling your vehicle, interest earned on your bank savings account or CD, gamble and lottery winnings, and competition winnings. All of these passive income are subject to be taxed, but they are completely legal and claimable regardless of your immigration status.
We understand that it could be difficult at times to not be able to freely seek employment or gain income when tuition in the United States can be pretty costly. That is perhaps the exact reason that the government requires you to prove that you have sufficient funds to cover your expenses while in the United States if you will reside here on a student visa. We also understand that conditions can change in the course of life and extra money becomes a necessity, but be mindful that violating immigration laws in the United States can have serious consequences including deportation or be barred from entering the United States when you attempt to return. F-1 students should talk to their DSO in the international students office of the school they are attending. If you are experiencing issues related to immigration or have questions regarding immigration, American Lifestyle strongly recommends you to contact an immigration attorney for professional advice.
*This article was written on May 28, 2019 with information that is accurate to the best of our knowledge for general informational purposes only. No part of this writing, or any content presented on this page, is intended to constitute legal advice. Laws, including immigration laws and tax laws, are subject to change at any time, and it is solely your responsibility to obtain the most current information. You should not act or rely solely on the information contained on this page without consulting a licensed attorney.
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