In H1 transfer, do you include the h1 worker name as primary applicant in I539 ??/

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No, the primary applicant is the beneficiary (may be your spouse?). For H-1 extension or transfer or any such matter you need to petition afresh with I-129. May be this was the problem in your case that you have been issued an H-4?? Talk to an attorney.
 
Thanks, but I have an approved H1 -my employer applied

My employer filed I129 and I filed I539 along with it. I included my name as primary applicant in I539, so I have H1 and H4 and my dependants have H4, now should I ignore my H4????
 
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