Resource hub
U.S. Tax Residency Center
Whether you are a U.S. tax resident decides whether the United States taxes only your U.S. income or your worldwide income. Learn how the green card test and the Substantial Presence Test work, which exceptions can apply, what happens in your first and last U.S. tax years, and how treaties can affect the result.
Key questions
- When does a foreign person become a U.S. tax resident?Usually, a foreign individual becomes a U.S. tax resident by meeting the green card test or the Substantial Presence Test. Exceptions, treaty provisions and certain elections can change the result. Tax residency is different from immigration status and generally brings worldwide income into the U.S. income tax system.
- How does the Substantial Presence Test work?You generally meet the Substantial Presence Test if you have at least 31 countable U.S. days in the current year and a weighted total of at least 183 days over three years. Count all current-year days, one-third of prior-year days and one-sixth of days from the second preceding year. Excluded days and available exceptions can change your tax status.
- What is the closer connection exception, and when is Form 8840 used?The closer connection exception may let you remain a nonresident for federal income tax even when you meet the weighted Substantial Presence Test. Generally, you must spend fewer than 183 actual days in the United States during the current year, maintain a foreign tax home throughout the year and have a closer connection to that foreign country. Form 8840 is used to claim the exception and must generally be filed on time.
- Does a green card holder living abroad still have to file U.S. taxes?Usually, yes: a green card holder living abroad remains a U.S. income tax resident and must file when the applicable filing requirements are met. Moving overseas or letting the physical card expire generally does not end that tax status. A treaty position or formal termination of permanent residence can change the analysis and may have significant consequences.
Forms to know
Comparisons
Terms explained
In-depth articles
How Many Days in the U.S. Make You a Tax Resident?
Your First U.S. Tax Year After Moving: Dual-Status Returns and the Elections That Change Them
Tax Resident in Two Countries? How Treaty Tie-Breaker Rules Work — and Their Hidden Costs
U.S. Tax Planning Before Moving to the United States
Giving Up a Green Card: U.S. Exit Tax and Form 8854 Explained
Tax cases
A Foreign Contractor Received a U.S. Form 1099-NEC. Did They Actually Owe U.S. Tax?
Foreign National Moved to the U.S. and Didn't Know Worldwide Income Became Reportable
New U.S. Resident Owned Foreign Mutual Funds and Didn't Know About PFIC Rules
L-1 Visa Holder Moving to the U.S.: What Happens to Your Foreign Income and Businesses?
F-1 Student Filed Form 1040 Instead of 1040NR: How Can It Be Corrected?
E-2 Visa Investor: When Does the U.S. Begin Taxing Your Worldwide Income?
O-1 Visa Holder With Foreign Income: U.S. Tax Rules You Need to Know
J-1 Visa and the Substantial Presence Test: Do Your Days in the U.S. Count?
How Chirino USA can help
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