Taxbee | Tax & Accounting ServicesIf you are an alien (not a U.S. citizen), you are considered a nonresident alien for tax purposes unless you meet one of the following two tests:
- The green card test
- The substantial presence test for the calendar year (January 1-December 31).
Generally, if you’re not a US citizen, but can meet one of the tests, you’re considered to be a resident alien.
What is the green card test?
You are a resident for federal tax purposes if you are a Lawful Permanent Resident of the United States at any time during the calendar year. This is known as the green card test.
You are a Lawful Permanent Resident of the United States if you are legally residing permanently in the United States as an immigrant. You generally have this status if the U.S. Citizenship and Immigration Services (USCIS) issued you an alien registration card, Form I-551, also known as a green card.
You continue to have U.S. resident status, under this test, unless:
- You voluntarily renounce and abandon this status in writing to the USCIS,
- Your immigrant status is administratively terminated by the USCIS, or
- Your immigrant status is judicially terminated by a U.S. federal court.
If you meet the green card test at any time during the calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day on which you are present in the United States as a Lawful Permanent Resident. However, an alien who has been present in the United States at any time during a calendar year as a Lawful Permanent Resident may choose to be treated as a resident alien for the entire calendar year.
What is the substantial presence test?
You will be considered a U.S. resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States on at least:
- 31 days during the current year, and
- 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
- All the days you were present in the current year, and
- 1/3 of the days you were present in the first year before the current year, and
- 1/6 of the days you were present in the second year before the current year.
Are there days that I should exclude for the substantial presence test?
Do not count the following days present in the United States for the substantial presence test:
- Days you commute to work in the United States from a residence in Canada or Mexico if you regularly commute from Canada or Mexico
- Days you are in the United States for less than 24 hours when you are in transit between two places outside the United States
- Days you are in the United States as a crew member of a foreign vessel
- Days you are unable to leave the United States because of a medical condition that develops while you are in the United States
- Days you are an exempt individual
Exempt Individual
Do not count days for which you are an exempt individual. The term “exempt individual ” does not refer to someone exempt from U.S. tax but to anyone in the following categories who is exempt from counting days of presence in the U.S.:
- An individual temporarily present in the United States as a foreign government-related individual
- A teacher or trainee temporarily present in the United States under a “J” or “Q” visa, who substantially complies with the requirements of the visa
- A student temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa, who substantially complies with the requirements of the visa
- A professional athlete temporarily in the United States to compete in a charitable sports event
Closer Connection
Even if you meet the substantial presence test, the IRS still might treat you as a nonresident alien if you maintain a tax home in a foreign country and have a closer connection to that country than to the United States.