Passive income on an F1 Visa as an International Student

Almost every immigrant is in the US for a better life. And a better life means earning some money. But when you’re here as a student with restrictions on how you can earn that money, it certainly hurts a bit. So, we try to find alternative ways to make some money. Some are legal, and some aren’t. In this blog post, we will share legal ways to earn passive income in the US on an F1 Visa. And answer all the common questions like earning through YouTube, stocks, Airbnb, dropshipping, and more. 

First, what is passive income? 

You might be wondering why she is telling us the definition of passive income. Because if you know the definition of passive income, most of your questions about it will get answered automatically.

So, passive income is income that is not earned by actively working for it. Which is basically “baithe baithe kamaana.”

And here are ways you can make passive income in the US on an F1 Visa.

1. Investing in stocks: And by that I mean investing, not day trading. Feel free to download Robinhood or any other brokerage account and invest your money there. Maybe even buy and sell a few shares from time to time. Earn dividends through your shares. All of that is allowed. But don’t day trade. That’s not allowed. 

2. Entering competitions: As a student, you’ll have an opportunity to participate in multiple competitions. Any competition you enter and win outside the campus won’t get you in trouble with US laws. Cash prizes you win also fall under the passive income category, like royalties. No matter how much money you accumulate, you’re staying within legal restrictions. Additionally, winning any lottery prize also counts as passive income. But that doesn’t mean you end up playing the lottery and losing money. Remember, the aim is to make money. 

3. Renting out a room: This is the most common way for you to generate some passive income abroad as a foreign student. Now, there are certain caveats to it which you should remember. 

   So, renting out 1 room for a long-term period is allowed. However, renting out multiple rooms and managing those properties as a landlord is not. Remember, the income should be passive. You don’t have to work for that money. And managing properties is actual work. So, not allowed. Even flipping houses is not allowed. 

   But if you hire a property management company to do all that on your behalf. Then the game changes. Because you’re not working, they’re working for you. They are managing the properties, collecting rent, fixing stuff for tenants, etc. You get the gis,t right?  You’re going to need a Social Security number in this case, though. Without one, you may face different tax implications, which can cost you more money.

4. Amazon Dropshipping or FBA: Unfortunately, even that’s not allowed. That means you’re basically actively working on your business. We recently got a DM from someone on Instagram asking if they can do a hemp business on their campus. When we said that’s not possible, they went on to ask if it is ok if they sell it only in their dorms without anyone knowing. Listen, if you want to get deported, please feel free to do all that. 

5. YouTube / Instagram Social media: Another question that we get daily is if it is ok to make money through YouTube. The answer is it depends. Remember Passive Income? Not to work actively. So, you can’t actively create content on social media and monetize it. No, you can’t even do brand sponsorships or get reels bonuses, etc. You can create content as long as you’re not monetizing it. But some of you have also asked what if I’m making money through videos I created when I was in India, and I’m making money now through them. Well, in that case, it is passive income. You’re not actively creating those videos right now, and any money you make through those videos is allowed. But then, you’ll get greedy and ask, what if I promote those videos so that they do well and then make money through that? Don’t do it. It again means you’re actively trying to make money. And that is not allowed. You can do barter partnerships because there’s no harm in it. 
   

6. Driving Uber/Lyft: Not allowed. It’s called active work. 
   

7. Filling surveys: Surveys that pay you money are not allowed. Surveys paying you in kind are fine. I guess by now you understand because filing surveys is actively working for money. 

That’s it, guys. I hope this clarified a lot of doubts for you. Wishing you all the best with your side hustles. Don’t break the law. And remember if things aren’t going well for you, they soon will. It’s Ok Yaar.