If you’re a foreign national living or working in the United States, one question you might have is: “Do I need to file U.S. taxes?” The answer often depends on something called the Substantial Presence Test—a critical rule used by the IRS to determine if you’re considered a resident for tax purposes.
Let’s break down what this test is, how it works, and what it means for you.
What Is the Substantial Presence Test?
The Substantial Presence Test (SPT) is a formula used by the IRS to decide whether a non-U.S. citizen (usually someone on a visa) should be taxed like a U.S. resident.
If you meet this test, you are treated as a resident alien for tax purposes, which means you must report your worldwide income to the IRS—just like a U.S. citizen.
How the Substantial Presence Test Works
To pass the Substantial Presence Test, you must be physically present in the U.S. for:
- At least 31 days during the current year, AND
- 183 days over the past 3 years, including:
- All the days you were present in the U.S. in the current year
- 1/3 of the days you were present in the year before that
- 1/6 of the days you were present in the year before that
Let’s Do the Math (Example)
Suppose you’re calculating for 2025:
- You were in the U.S. for:
- 120 days in 2025
- 180 days in 2024
- 180 days in 2023
Now apply the formula:
- 120 days (all of 2025)
- 60 days (1/3 of 2024)
- 30 days (1/6 of 2023)
= 210 days
✅ Since this is more than 183 days and you were present for at least 31 days in 2025, you pass the test and are considered a U.S. resident for tax purposes.
Who Doesn’t Count Toward the Test?
Certain individuals can exclude days from the calculation:
- Students on F, J, M, or Q visas (exempt for 5 years)
- Teachers or trainees on J or Q visas (exempt for 2 years out of 6)
- Foreign government-related individuals or diplomats
- People unable to leave due to medical conditions
These exemptions apply only if you meet certain IRS conditions.
Why It Matters
If you pass the test:
- You’re treated as a resident alien for tax purposes
- You must file Form 1040
- You must report worldwide income, not just U.S. income
- You might qualify for standard deductions and tax credits (like U.S. citizens)
If you don’t pass the test:
- You’re considered a nonresident alien
- You’ll file Form 1040-NR
- You only report U.S.-sourced income
Dual-Status Aliens & Treaty Rules
Sometimes, people meet the test partway through the year. They become dual-status aliens, and file both as a resident and nonresident for different parts of the year.
Also, some countries have tax treaties with the U.S. that may override the SPT—allowing you to claim treaty benefits and avoid double taxation.
Final Thoughts
The Substantial Presence Test is more than just a counting rule—it decides how much of your income the U.S. government will tax. It’s essential to understand this test if you’re in the U.S. on a visa or if you’re an international student, worker, or visitor.
Need help figuring out if you meet the test or how to file? At RIWA Tax Services, we help international taxpayers navigate U.S. tax rules with clarity and confidence.
Contact us: +1 (972)-996-6644
Email us : info@theriwa.com Visit our website : https://theriwa.com/
