Question: Is my residency status for tax purposes the same as
my immigration status?
Answer: Your residency status for tax purposes is completely
separate from your designation for immigration purposes. You might
qualify as a resident for tax purposes while remaining a nonimmigrant
alien for immigration purposes. If you are present in the U.S.
on a temporary visa, you might be a resident alien for tax purposes,
a non-resident alien, a non-resident alien who is eligible to
elect to be taxed as a resident, or a dual-status alien.
Question: If I am a permanent resident of the U.S. am
I always a resident for tax purposes?
Answer: You are a lawful permanent resident if you have been
given the privilege, according to the immigration laws, of residing
permanently in the United States as an immigrant. You generally
have this status if the Immigration and Naturalization Service
(INS) has issued you an alien registration card, also known as
a green card (although it is not really green). You are a U.S.
resident for tax purposes beginning on the first day you are present
in the U.S. as a lawful permanent resident. Therefore, for the
first year of your residency, if you were a nonresident prior
to obtaining permanent residency status, you will be classified
as a dual-status alien for tax purposes. As a dual-status alien
you must file a separate return, cannot claim the standard deduction,
and generally cannot claim dependency exemptions.
As a resident taxpayer you must report, for U.S. tax purposes,
your worldwide income. You are also eligible to claim all deductions
and credits available to U.S. citizens once you are a full-year
resident. You can file Form 1040, 1040A or 1040EZ, whichever is
applicable to your situation, and if you are married you can file
a joint return with your spouse. See the instructions for the
forms. As a resident taxpayer, you still might be eligible to
claim treaty benefits under the U.S. tax treaty with your home
country.
Question: I entered the United States as an F-1 student
for the first time in December of 1996. It is now 2002. Am I a
resident or nonresident alien?
Answer: As an F-1 student (or family member), you were exempt
from the substantial presence test for determining U.S. tax residency
for the first five calendar years you were present at any time
in the United States. That means you were considered a nonresident
alien during that period because you were an "exempt individual."
Because 2002 is your sixth calendar year in the United States,
that period has ended, so you must use the substantial presence
test to determine your tax residency status. You will be considered
a U.S. resident during the current calendar year for tax purposes
if you meet the substantial presence test.
To meet this test, you must be physically present in the United
States during a period you do not hold an F, J, M or Q visa on
at least:
1. 31 days during the current year, and
2. 183 days during the 3-year period that includes the current
year and the previous two years, counting:
• All the days you were present in the current year, and
• 1/3 of the days you were present in the first preceding
year, and
• 1/6 of the days you were present in the second preceding
year.
This test is easy if the current year is the first calendar
year you are not considered an exempt individual. If that's the
case, you meet the test if you were present in the U.S. for at
least 183 days during the year. If you were present in the U.S.
for less than 183 days in the current year, you do not meet the
test.
Question: I am visiting the United States on an H-1b
visa, and my spouse is visiting on an H-4 visa. What is my residency
status for tax purposes?
Answer: You are not exempt from the substantial presence test
unless you are present in the United States on an F, J, M or Q
visa. Therefore, you are a U.S. resident in the current year for
tax purposes if you meet the substantial presence test (see the
previous question), beginning on the first day you are present
in the United States. You are not considered present in the United
States while you are here on an F, J, M or Q visa.
If you meet the test and have been in the U.S. on an H-1B visa
for the entire calendar year, you are a full-year resident for
U.S. tax purposes. As a resident taxpayer you must report, for
U.S. tax purposes, your worldwide income. You are also eligible
to claim all deductions and credits available to U.S. citizens.
You can file Form 1040, 1040A or 1040EZ, whichever is applicable
to your situation, and if you are married you can file a joint
return with your spouse. See the instructions for the forms. As
a resident taxpayer, you still might be eligible to claim treaty
benefits under the U.S. tax treaty with your home country.
If you fail the substantial presence test you are a nonresident
alien. As a nonresident alien, you are required to file a tax
return each year you are here if you have any income subject to
U.S. income tax. If you are married, you and your spouse must
file separate returns; joint returns are not allowed. File Form
1040NR, U.S. Nonresident Alien Income Tax Return, or, if you qualify,
Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident
Aliens With No Dependents.
If you received wages subject to U.S. tax withholding during
the year, the due date for your tax return is April 15 of the
following year. If you did not receive taxable wages during the
year, the due date for your tax return is June 15 of the following
year. Your Form 1040NR or Form 1040NR-EZ must be sent to the Internal
Revenue Service Center, Philadelphia, PA 19255.
