Resident or nonresident alien: How to find out with the U.S. Substantial Presence Test

Congrats! You’ve made it to the United States! Though this may be the land of opportunity, it’s also a confusing mix of complicated tax rules. Looking to find out whether you’re a resident or nonresident alien for tax purposes? We’re here to help you figure this out.

Who is an alien and do you need to pay taxes in the U.S.?

According to IRS Publication 519 (U.S. Tax Guide for Aliens), an alien is an individual who is not a U.S. citizen. There is a further distinction between resident and nonresident aliens.

Resident Alien

For tax purposes, a resident alien is someone who meets either the green card or substantial presence test.

• • J and F student visa holders are considered resident aliens after 5 calendar years in the U.S.
• • J non-student visa holders are considered resident aliens after 2 calendar years in the U.S.
• • H-1, TN, and O-1 visa holders are considered resident aliens after qualifying for the substantial presence test

Nonresident Alien

For tax purposes, a nonresident alien is someone who meets neither the green card nor the substantial presence test.

• • J and F student visa holders are considered nonresident aliens during the first 5 calendar years in the U.S.
• • J non-student visa holders are considered nonresident aliens during the first 2 calendar years in the U.S.
• • H-1, TN, and O-1 visa holders are considered non-resident aliens until they meet the substantial presence test

Green Card Test

If you are a lawful permanent resident of the United States at any time during the calendar year, you meet the green card test.

Substantial Presence Test: the 183 day rule

To qualify for the substantial presence test, you must be physically present in the United States on at least 31 days of the current calendar year (Jan 1 - Dec 31) and 183 days of the 3-year period which includes the current year and the immediate prior 2 years. To calculate this, you should count:

• • all days present in the current year
• • 1/3 of the days you were present in the year prior to the current year
• • 1/6 of the days you were present in the year two years prior to the current year

Substantial Presence calculation examples

Qualifying example:

If you were present in the U.S. for 180 days in each of the years 2022, 2023, and 2024:

• • 2024 — 180 days
• • 2023 — 60 days (180 x 1/3)
• • 2022 — 30 days (180 x 1/6)

for a total of 270 days over a 3-year period. You are considered a resident under the substantial presence test for 2024.

Failing example:

If you were present in the U.S. for 30 days in 2024, 120 days in 2023, and 30 days in 2022:

• • 2024 — 30 days
• • 2023 — 40 days (120 x 1/3)
• • 2022 — 5 days (30 x 1/6)

for a total of 75 days over a 3-year period. You are considered a nonresident under the substantial presence test for 2024.

In general, you should count any day you are physically present in the United States. See the IRS Substantial Presence Test for a list of exceptions to this rule.

Count your days

Counting your days can be a hassle. Whether you’re a student or a professional, you’re busy — we get it! Save time spent hunting down old airline confirmation emails and check out Pebbles app to keep track of your days spent in the U.S.