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H1B - combined 6th year , recapture time of 3 months extension filed , PERM pending

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Hello , 

My wife is working on H1B  and her PERM for Green card  was filed on last December 2019  which is still pending for approval. she will be maxing out 6 years this month. Her current H1b was approved till last month (March 31) and her I94 is valid till 10 April 2020. so employer has filed Combined regular non premium H1B extension requesting for a period of  1 month left in H1B max out + recapture time of 3 months .(extension is filed  requesting for Total period of 1 year including this 4 months). 

Assuming within next 4 months PERM is approved , but I140 is only filed not approved since there is no premium processing for I140. Incase USCIS has not responded to her case till September/ october or if there is an RFE for the extension filed (there is a 90 days to reply for an RFE)- can she continue to work until USCIS adjudicates her case either as approved or Denied)  even after her max out date of  august 2020? 

Since H1B Extension is filed before 6 year max out requesting for combined Pre  max out days and post - recapture days. is the stay valid util this extension petition is approved or denied by USCIS OR does she needs to be converted to H4 since I am on H1B and i have my H1B petition approved till end of next year.?

Is it possible to apply change of status for her from H1 to H4 in the month of August (after her I94 is expired)? or she needs to go to India after august and stamp her H4 and enter USA again? 

It is confusing bit , please provide your advice


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Max out date = 6 Years + any period she was out of US. She can't work after her Max out date even if the case is pending. 

Stamping will be the quickest was to transfer to H4 and will be easier to move back to H1 once her I140 is approved. 

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