You are in the period of authorized stay if your extension is pending with USCIS and your i94 has expired. Example: Your H1B and i94 expires on Jan 31. You file H1B extension on Jan 1 the same year i.e. before it actually expires. The i94 and visa expires but USCIS has still not taken any decision. You are counted 'out-of-status' but in 'period of authorized stay' until USCIS makes a decision. Specifically, for H1B, this waiting period is 240 days starting after i94 expiry. USCIS takes a decision on July 30: Approval : Your Period of authorized stay from Feb 1 to July 30 is automatically converted to 'Lawful status'. Rejection / Denial: Your Period of authorized stay from Feb 1 to July 30 is counted as 'period of authorized stay' only as explained below.