Are You a Resident U.S. Citizen in the Eyes of the IRS?

Residency for tax purposes does not mean the same thing as residency for immigration purposes. When filling out your tax forms, you are a U.S. resident if you either (1) have a permanent resident status, meaning you may have a green card, or (2) you have a “substantial presence” in the U.S.

Substantial Presence Test

You will be considered a U.S. resident by the IRS if either:

• You were present in the United States for 183 days or more during the current calendar year, or
• You meet the requirements of the “look-back” rule.

The Look-Back Rule

Under the “look-back rule,” you must be able to total up at least 183 days of presence in the United States over a three-year period. A day of presence in the current year counts as a full day towards your total. A day of presence in the prior year is counted as one-third of a full day. A day of presence two years ago counts as one-sixth of a full day.

For example, if you were present in the U.S. for 100 days in the current year, 200 days in the year before, and for 200 days in the year before that, you will be considered a U.S. resident for tax purposes:

• Current year: 100 days x 1 full day = 100 days
• Last year: 200 days x 1/3 of a full day = 66 days
• Year before that: 200 days x 1/6 of a full day = 33 days

In total, under the look-back rule in the above scenario, you would have been present in the U.S. for a total of 199 days, which meets the requirement of “substantial presence” under the IRS Code.

Exemptions from Substantial Presence

If you are present in the United States under certain circumstances, or for a specific limited reason, you may be exempt from counting those days towards your residency total. Persons who may qualify for such an exemption include:

• A teacher or trainee temporarily present in the U.S. under a J or Q visa.
• Someone temporarily present as a foreign government-related individual.
• A student who is temporarily present in the U.S. under a F, J, M, or Q visa.
• A professional athlete.