If an initial H-4 change-of-status application filed within the 60-day grace period is rejected for a form error and the refiled application is received after the grace period ends, may the applicant remain in the US while it is pending?
This is a high-risk situation. Because the properly filed application was received after the 60-day grace period expired, the applicant has fallen out of status. Even if USCIS accepts the late filing, unlawful presence accrues starting on day 61 unless USCIS approves the case and backdates status. Do not wait past 180 days of unlawful presence; if not approved by then, departure from the US is necessary to avoid a multi-year entry ban.