Tax

Substantial Presence Test Calculator

The substantial presence test calculator is how you determine whether you’re a resident or a non-resident for tax purposes. If you were physically present in the United States for the calendar year, you may be considered as a resident for tax purposes.

To be considered a resident for tax purposes, you must be present in the United States for at least 31 days during the current year and 183 days during the three-year period or 151 days two years prior to the current year.

For example, if you were in the U.S. for a total of 120 days in 2018, 2019, and 2020, you won’t be considered a resident for tax purposes under the substantial presence test. The total number of days physically present in the United States must be at least 180 days to be considered a resident under the substantial presence test for 2020.

The calculator below can help you figure out if you will be considered as a resident or nonresident for tax purposes.

What counts as days present in the United States?

Being in the United States counts as being present in the country but there are exceptions to this rule. If any of the following applies to you, do not count the days toward your substantial presence test.

  • Days you were in the United States for less than 24 hours. For example, when you’re in transit between two places outside the U.S.
  • Days you were in the U.S. as a crew member of a foreign vessel.
  • Days you were unable to leave the U.S. due to a medical condition that developed while you were in the country.
  • Days you commute to work in the U.S. from a residence in Canada or Mexico. This exception only applies if you regularly commute from the mentioned countries.

In addition to these, there are days you might be an exempt individual. If you’re an individual under A or G visa (except A-3 and G-5 class visas), you are an exempt individual. Other reasons where you might be an exempt individual include:

  • Being a temporarily present teacher or trainee in the U.S. under J or Q visas.
  • Being a temporarily present student in the U.S. under F, J, M, or Q visas.
  • Being a temporarily professional athlete in the U.S. to compete in a charitable sports event.

Determine my residency status under the substantial presence test

If you were physically present in the United States for at least the said number of days shown in the list below, you will be considered a resident for tax purposes.

  • 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.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button