Glossary
Resident Alien
Definition
A resident alien, for U.S. tax purposes, is a non-citizen who is a lawful permanent resident (green card holder) or who meets the Substantial Presence Test for the year. Resident aliens are generally taxed on worldwide income like U.S. citizens.
Two main ways to become a resident
- Green card test: lawful permanent resident status at any time during the calendar year.
- Substantial Presence Test: enough days of physical presence in the United States over a three-year period, using the 183-day weighted formula.
What changes
A resident alien generally reports worldwide income on Form 1040 and may face foreign account and asset reporting, such as FBAR, Form 8938, or forms for foreign companies and funds. Credits, treaty positions and exceptions may be available depending on the facts.
Starting and ending residency
The first and last years of residency can be split into resident and nonresident periods. Leaving the status, especially a green card, can involve formal steps and possible exit tax rules, so timing deserves care.
Practical example
For example, suppose Camila moves from Colombia to the United States on a work visa and meets the Substantial Presence Test this year. She may be a resident alien and need to report her Colombian income and accounts on her U.S. filings.
General information, not tax advice
This page provides general educational information about U.S. federal tax rules. It is not individualized tax, legal or accounting advice, and it does not create a client relationship. Results depend on each taxpayer's specific facts.
Written by Roger I. Chirino, founder of Chirino USA Accountants & Advisors P.A.
Supported by licensed CPAs, IRS Enrolled Agents (EAs), and experienced U.S. tax professionals focused on cross-border compliance and planning.
Related questions
When does a foreign person become a U.S. tax resident?
How does the Substantial Presence Test work?
Does a green card holder living abroad still have to file U.S. taxes?
Can a nonresident alien own an S corporation?
Who has to file an FBAR?
I moved to the U.S. and still own my foreign company. What changes?
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