The Substantial Presence Test: Am I a US Tax Resident?

Before you can determine which tax return to file, you need to know whether the IRS considers you a resident or nonresident alien. The Substantial Presence Test (SPT) is the primary way to figure this out.

The formula

You're a US tax resident under the SPT if:

• •You were in the US for at least 31 days during the current year, AND

• •The sum of the following equals 183 days or more:

- All days in the current year, PLUS

- 1/3 of the days in the prior year, PLUS

- 1/6 of the days in the year before that

Example

• •2024: 120 days in the US
• •2023: 90 days in the US
• •2022: 60 days in the US

Calculation: 120 + (90 × 1/3) + (60 × 1/6) = 120 + 30 + 10 = 160 days

Result: 160 < 183, so you're NOT a resident under the SPT for 2024.

Exceptions

Closer Connection Exception. Even if you meet the 183-day threshold, you may still be treated as a nonresident if:

• •You were in the US for fewer than 183 actual days in the current year
• •You have a closer connection to a foreign country (your "tax home" is abroad)
• •You file Form 8840 to claim this exception

Exempt individuals. Certain people don't count days toward the SPT:

• •Foreign government-related individuals (A/G visa holders)
• •Teachers and trainees (J/Q visa holders) — first 2 calendar years
• •Students (F/J/M/Q visa holders) — first 5 calendar years
• •Professional athletes competing in charitable events

Why it matters

• •Resident alien: File Form 1040 (same as US citizens). Taxed on worldwide income.
• •Nonresident alien: File Form 1040-NR. Taxed only on US-source income.

The difference can be enormous. A resident alien with $500,000 in foreign income owes US tax on all of it. A nonresident alien with the same foreign income owes nothing to the IRS (on that foreign income).

Digital nomads beware

If you're traveling to the US frequently for business, keep a careful count of your days. Even transit days count (unless you're in transit and don't conduct business). Use a calendar app or spreadsheet to track your US presence.