To change a nonimmigrant status you must be in a valid nonimmigrant status on the day you file for the change.
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My wife is on H1 can i immediately file H4 with COS.
You can try. It will be up to USCIS whether to grant it.
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Although you can clearly leave the US and apply for an H-4 ... filing a COS after a L extension denial probably won't be approved ... due to you not having valid L status on the day of your application.
But, I could be wrong ... if you filed fast (withing the 'hidden' 10 day grace period of an L ending it might work ... quite a bit would depend on why the extension was denied and the exact language of the denial.
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