H1 B, Ebay Income, 485 Pending.

[freebird901]

I've read on these forums that selling on ebay is considered a busiess and is not permitted on H1. Unfortunately it's too late in my case.

In 2003, I sold clothing/antiques on ebay as a business. I thought the H1-B was only employer specific and if I make a few bucks on ebay, it is not unlawful. I bought and sold with the intent of making a profit. I only did it a little but I ended up making a gross profit of $7000.

Since it was a decent amount, I thought I should do the right thing and declare taxes and file Schedule C. I filed taxes at H&R Block and they told me about some deductions after which the $7000 became $1300 in taxable income.

My labor and 140 have cleared but I'm worried about the 485. It's been about 6 months since I applied and my dates are current.

We had to submit tax returns as part of the 485 application so I'm wondering how to handle it if I get an RFE or denial notice.

My company lawyer says that I can use a clause that says unlawful employment is fine if it is 180 days after you enter the US and the 180 days starts off each time you enter the country. I travel outside the country frequently so if this rule applies, then I should be fine.

However, I've read different things on these forums and wanted to get other people's experiences if any.

Also, another reason I'm worried is that I am planning to use my EAD card and switch employers. If I use the EAD card, I lose H1-B status and if my 485 is denied, I go out of status.

I have a lawyer but just wanted more input from others in the forum.

 

[NIW-Nov 04]

freebird901,

This is what I think. ...First of all I should compliment you on making big money on ebay. If wish if I could learn from you how to make quick money on ebay. Did you you have EAD card in hand before doing the online business and filing taxes with H&R. If you did then and if an RFE arises then you/your company could bascially say that you used your EAD while working with them hence that extra money you made should not counted as the time on H1B visa which is employer specific. EAD could be used fr jobs in "open market". If you want to regain H1B VISA then you would have to step out of USA and schedule H1B visa interview and come back to USA with an H1b stamp. By doing so you should re-gain H1b status. Also since your PD is current you should not forget to obtain Advance parole (AP) for return trip. Use AP only if your I-485 gets approved while you were out of US.

While EAD is good for use to make transition to another company there is some risk involved hence best to use H1b while transitioning to new company. you could switch job as soon as new company files a new H1b visa.

I hope this answers some of your questions....

Good luck and dont worry.

 

[freebird901]

I was not on EAD at the time. I just got my EAD couple months ago.

Is it likely my 485 will get denied due to $1300 in income.

Anyone had similar sources of online income and declared it? Any input appreciated.

Thanks.

 

[NIW-Nov 04]

It all depends how stringently adjudcating officer wants to evaluate your sources of income. I dont think they would deny your I-485 just because you made extra money since you were honest and reported your extra income to IRS. Hence, I feel you should be ok. Don't raise that issue of extra income unless you are asked. if they raise that issue then you should say that you "honestly" paid taxes on it like a true tax paying resident of USA.

Good luck !