I am on H1B and my wife has H4 EAD. Can my wife actively manage our short term rental and then we claim tax returns as part of joint filing.

Your wife’s H-4 EAD is for open market employment, and she is not restricted in her job opportunities as long as they are not illegal. It should be made clear on the tax return whose income it is that is derived from the short-term rental since that work is not authorized for you. You can discuss that with your accountant. Due to the limitations of the Lawyers.com Forums, Alan Lee & Arthur Lee, Esqs.’ (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided herein by the Firm is general, and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.