To determine whether you qualify as a resident alien for tax purposes, you need to consider two main tests: the Green Card Test and the Substantial Presence Test. Here’s how you can go through both tests:

1. Green Card Test

• If you have a Green Card (U.S. permanent resident card), you are considered a resident alien for tax purposes, regardless of how many days you've spent in the U.S.

• If you don't have a Green Card, you do not qualify as a resident alien under this test. (You’ll need to move to the next test: the Substantial Presence Test.)

2. Substantial Presence Test

This test is used to determine whether you are a resident alien based on the number of days you’ve been in the U.S. over a 3-year period. To qualify as a resident alien under this test for the current year, you must meet two conditions:

• Condition 1: You must be physically present in the U.S. for at least 31 days during the current year.

• Condition 2: The total days you were physically present in the U.S. during the current year and the two preceding years must total 183 days or more. The calculation is done using the following formula:

  • All days you were present in the current year count as 1 day each.

  • 1/3 of the days you were present in the previous year count.

  • 1/6 of the days you were present in the year before that count.

Substantial Presence Test: Example Calculation

Let’s say you were in the U.S. for the following number of days:

• Current year: 120 days

• Previous year: 90 days

• Year before that: 60 days

Your total count for the Substantial Presence Test would be:

• 120 days (current year) × 1 = 120 days

• 90 days (previous year) × 1/3 = 30 days

• 60 days (year before that) × 1/6 = 10 days

Total days = 120 + 30 + 10 = 160 days

In this example, you would not qualify as a resident alien because the total number of days is less than 183.

If you meet both conditions of the Substantial Presence Test, then you are considered a resident alien for tax purposes.

Special Considerations for F-1 Students (and other visa holders)

• F-1 Students: F-1 visa holders are generally exempt from counting days for the Substantial Presence Test for the first 5 years they are in the U.S. on the F-1 visa. During this exemption period, F-1 students are typically nonresident aliens for tax purposes, even if they’ve been in the U.S. for more than 183 days.

  • After the 5-year exemption period, you would begin counting your days toward the Substantial Presence Test.

• J-1 Visa Holders: Similar to F-1 students, J-1 visa holders (such as researchers or exchange students) are generally exempt from the Substantial Presence Test for two out of the first six years they are in the U.S. under that visa status.

How to Check if You Qualify as a Resident Alien for Tax Purposes

1. Green Card: If you have a Green Card, you are a resident alien.

2. Substantial Presence Test: If you don’t have a Green Card, use the Substantial Presence Test:

   • If you meet the two conditions (31 days in the current year and 183 total days calculated over the 3-year period), you are a resident alien.

   • If you don’t meet those conditions, you're a nonresident alien.

Example Scenarios

Scenario 1: F-1 Student (First Year in the U.S.)

• Current year: You’ve been in the U.S. for 150 days.

• Previous year: You were in your home country.

• Year before that: You were in your home country.

Result: You do not meet the Substantial Presence Test because you are in your first year as an F-1 student and exempt from the Substantial Presence Test. You are considered a nonresident alien for tax purposes for this year.

Scenario 2: H-1B Worker (3rd Year in the U.S.)

• Current year: 100 days

• Previous year: 120 days

• Year before that: 140 days

Result: You are likely to meet the Substantial Presence Test:

• 100 (current year) + 40 (1/3 of previous year) + 23.3 (1/6 of year before) = 163.3 days

• You would need to add more days in the current year to reach 183, so it’s possible you’ll qualify as a resident alien for tax purposes.

Conclusion

If you have a Green Card, you are a resident alien. If you don’t, check if you meet the Substantial Presence Test. For F-1 students, remember that you're exempt from the Substantial Presence Test for the first 5 years, so you'll likely be a nonresident alien during that period.