Determining Residency for Tax Purposes – Substantial Presence Test

Residency status—that of U.S. Citizen, Resident Alien, and Non-Resident Alien—determines how individuals are taxed. International students will be considered U.S. residents for tax purposes when they meet the Substantial Presence Test for the calendar year.

In summary, to meet this test, students must be physically present in the United States on at least:

• 31 days during the current year, and
• 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
  • All the days you were present in the current year, and
  • 1/3 of the days you were present in the first year before the current year, and
  • 1/6 of the days you were present in the second year before the current year.

In general, F-1 and J-1 students are exempt from counting days toward Substantial Presence for their first 5 calendar years in the U.S. and J-1 postdoctoral scholars are exempt for their first 2 calendar years in the U.S.

To determine whether or not you are a non-resident alien, use the Substantial Presence Test. Once you determine your residency status, review tax considerations based on your status:

• Overview: Tax Considerations for U.S. Citizens & Resident Aliens
  
  ~ OR ~
  
  
• Overview: Tax Considerations for Non-Resident Aliens