DEFINITION OF RESIDENT ALIEN AND NONRESIDENT ALIEN
For Federal income tax purposes, non-U.S. citizens are
classified by the IRS as either resident or nonresident
aliens. Since the tax withholding requirements are
different for resident and nonresident aliens, it is
essential to establish the residency status of any non-U.S.
citizen who will be receiving payments from the University.
There are two tests used to determine whether a non-U.S.
citizen should be classified for tax purposes as an U.S.
resident or as a nonresident alien: the "green card" test
and the substantial presence test. An alien who does not
qualify under either test is defined for income tax purposes
as a nonresident alien.
A. GREEN CARD TEST
An alien is considered to be a U.S. resident for income
tax purposes if the individual is a lawful permanent
resident of the United States, i.e., a lawful U.S.
immigrant--with a Permanent Resident Card ("green
card")--at any time during the calendar year.
B. SUBSTANTIAL PRESENCE TEST
General Rules
An alien will be considered a U.S. resident for tax
purposes if he or she meets the substantial presence
test under the conditions listed below. The test must
be applied each year on a prospective basis, always
taking into account the current year and the two
preceding years.
An alien will meet the substantial presence test with
respect to any current calendar year if:
1) He or she was present in the United States for at
least 31 days during the current calendar year;
and
2) The sum of the number of days he or she was
present in the United States during the current
year and the two preceding calendar years equals
or exceeds 183 days as computed using the
following formula:
A. Current year days in U.S. x 1 =____days
B. 1st preceding year days in U.S.x 1/3 =____days
C. 2nd preceding year days in U.S.x 1/6 =____days
D. Total Days in U.S. =____days
If line D equals or exceeds 183 days, the individual
has passed the substantial presence test for the
current calendar year. The test must be applied
again in the following year.
