USCIS Fee Increase Effective October 16, 2026: Initial EAD $570, Parole Fee $1,050, TPS $520—What Applicants and Employers Should Check (Tax Angle) | YCL CPA

By YCL CPA | YCL Tax, Accounting & Advisory

Bottom line in one breath

USCIS will apply new FY 2027 inflation-adjusted fees to requests postmarked on or after Friday, October 16, 2026. The changes cover a short list of fees created by H.R. 1 (the One Big Beautiful Bill Act): the initial EAD (Form I-765) for asylum applicants, parolees and TPS applicants rises from $560 to $570; the Annual Asylum Fee from $102 to $105; the Form I-131 Immigration Parole Fee from $1,020 to $1,050; and the Form I-821 TPS fee from $510 to $520. Requests postmarked on or after October 16, 2026 without the proper fee will be rejected. If you are mailing one of these forms, send it before the date or include the new amount. The tax angle: once a work permit arrives, your payroll and tax-residency paperwork has to be right from the first paycheck.

Background

USCIS announced the change on September 30, 2026, and DHS published the notice “Fiscal Year 2027 Inflation Adjustment to H.R. 1 Immigration Fees” in the Federal Register on October 1, 2026 (FR Doc. 2026-20187). H.R. 1, signed July 4, 2025, created these fees and requires annual inflation adjustments (CPI-U). USCIS describes the adjustments as minor, reflecting inflation from July 2025 through July 2026. Other USCIS fees not on this list are not changed by this notice.

Old vs. new fees (postmarked on or after October 16, 2026)

1. Form I-765, initial EAD (asylum applicant, parole, TPS): $560 → $570.

2. Annual Asylum Fee: $102 → $105.

3. Form I-131 Immigration Parole Fee: $1,020 → $1,050.

4. Form I-821, TPS application fee: $510 → $520.

5. Wrong fee: requests postmarked on or after October 16, 2026 without the proper fee are rejected (not held).

Self-check

1. If you are mailing an initial EAD, parole or TPS filing this week: will it be postmarked by Thursday, October 15, 2026? If not, pay the new fee.

2. If an attorney or employer prepared your packet earlier: was the check or card authorization updated?

3. If you just received an EAD: do you have a Social Security number, and has your employer collected Form W-4 and Form I-9?

4. If you have been filing with an ITIN: once you get an SSN, tell the IRS so your records are combined.

5. If you are unsure whether you are a U.S. resident for tax purposes: the substantial presence test decides whether you file Form 1040 or 1040-NR.

Simplified example (illustration only—not a prediction or promised outcome)

A parolee mails an initial EAD application. Postmarked October 15, 2026: fee $560. Postmarked October 16, 2026 with $560: rejected; refiling with $570 costs time—possibly weeks of delayed work authorization and, with it, delayed wages. The $10 difference is small; the cost of a rejection is not.

Action timeline

1. By Thursday, October 15, 2026: mail any ready filings under the old fees (track the postmark).

2. From Friday, October 16, 2026: use the new fees; check the USCIS fee calculator and form page before mailing.

3. When the EAD arrives: apply for an SSN; complete W-4 and I-9 with your employer.

4. Tax season 2027: confirm your residency status for 2026 and file the right return.

What YCL can do

1. Tax residency analysis: substantial presence test, dual-status years, Form 1040 vs. 1040-NR.

2. ITIN-to-SSN transition: cleaning up prior filings so IRS records match.

3. New-employee payroll setup: W-4 review and state withholding for EAD holders.

4. Coordination with immigration counsel: we handle the tax side; immigration questions stay with licensed attorneys.

5. YCL Accounting & Consulting is headquartered in North Carolina and serves clients in every state with multistate CPA licenses; co-founder Gloria (Chenchen) Liu, CPA works in English and Chinese.

FAQ

Q: Does the October 16, 2026 change raise every USCIS fee?

A: No. The FY 2027 notice adjusts only the H.R. 1 fees listed above. Check USCIS for any other fee.

Q: What decides old vs. new fee—the date USCIS receives it?

A: The notice uses the postmark date: requests postmarked on or after October 16, 2026 need the new fee.

Q: Does getting an EAD change my tax filing?

A: Work authorization does not by itself make you a U.S. tax resident; the substantial presence test does. But wages must be reported, and you will need an SSN for payroll.

Book a consult

YCL Accounting & Consulting (YCL Tax, Accounting & Advisory)

Headquartered in North Carolina, serving clients in all 50 states, with multistate CPA licenses

Web: yclcpa.com ｜ Email: info@yclcpa.com

Phone: 919-802-8376 / 980-202-0666 ｜ WeChat: YCLUSA

U.S. headquarters: 1140 Kildaire Farm Rd. STE 208, Cary, NC 27511

Shanghai office: 2-516, Zhongye Xiangteng Plaza, Lane 31, Jiatong Road, Shanghai

Book a Free Consultation with co-founder Gloria (Chenchen) Liu, CPA for the tax side of your new work permit.

Sources: USCIS alert (Sept. 30, 2026) https://www.uscis.gov/newsroom/alerts/uscis-announces-fy-2027-inflation-increase-for-certain-immigration-related-fees · Federal Register, Oct. 1, 2026, FR Doc. 2026-20187 https://www.federalregister.gov/documents/2026/10/01/2026-20187/fiscal-year-2027-inflation-adjustment-to-hr-1-immigration-fees

Disclaimer

This article is general tax information only and is not immigration, tax or legal advice. YCL does not provide immigration legal services; consult a licensed immigration attorney about filings. Fees can change—verify on USCIS.gov before mailing.