For U.S. tax purposes, a nonresident alien is someone who is not a U.S. citizen and does not meet either of the IRS residency tests: the Green Card Test or the Substantial Presence Test.
Understanding your tax residency status is important because resident aliens and nonresident aliens are taxed under different rules.
Green Card Test
You are generally considered a resident alien if you were a lawful permanent resident of the United States at any time during the tax year. In other words, if you have a valid green card (Form I-551), you typically meet the Green Card Test and are treated as a U.S. resident for tax purposes.
Substantial Presence Test
You may also be considered a resident alien if you meet the IRS Substantial Presence Test. To qualify, you must be physically present in the United States for:
- At least 31 days during the current year, and
- A total of 183 days during the current year and the two preceding years, using the following calculation:
- Count all days you were present in the current year.
- Count 1/3 of the days you were present in the first preceding year.
- Count 1/6 of the days you were present in the second preceding year.
If you do not meet either the Green Card Test or the Substantial Presence Test, you are generally considered a nonresident alien for federal tax purposes.
Special Exceptions
Even if you spend time in the United States, certain exceptions may affect how your residency status is determined.
Exempt Individuals
Some individuals can exclude certain days of U.S. presence when applying the Substantial Presence Test. These may include:
- Students temporarily in the U.S. on F, J, M, or Q visas (subject to IRS rules and time limits).
- Teachers, trainees, and researchers on qualifying visas.
- Diplomats and foreign government representatives on A or G visas.
- Certain professional athletes temporarily in the U.S. for a charitable sporting event.
Closer Connection Exception
In some cases, a person who meets the Substantial Presence Test can still be treated as a nonresident alien if they can show a closer connection to another country and satisfy specific IRS requirements. This often involves demonstrating stronger personal, economic, and social ties outside the United States.
Need Help Determining Your Status?
If you're unsure whether you're a resident alien or nonresident alien, the IRS provides detailed guidance in IRS Publication 519, U.S. Tax Guide for Aliens. The publication explains:
- The Green Card Test
- The Substantial Presence Test
- Exempt individual rules
- The closer connection exception
- Filing requirements for resident and nonresident aliens
You can also review IRS Topic No. 851, Resident and Nonresident Aliens for a concise overview of the residency rules.
Additional Resources
- IRS Publication 519, U.S. Tax Guide for Aliens
- IRS Topic No. 851, Resident and Nonresident Aliens
- Determining an individual's tax residency status
Quick Takeaway
A nonresident alien is someone who is not a U.S. citizen and does not qualify as a resident alien under either the Green Card Test or the Substantial Presence Test. If your situation involves visa exceptions, time spent abroad, or ties to another country, additional IRS rules may apply.