Resident alien, nonresident alien definition
Resident and nonresident alien are terms the Internal Revenue Service (IRS) uses for tax purposes.
“Resident alien” and “nonresident alien” are terms the Internal Revenue Service (IRS) uses for tax purposes. They are not immigration classifications, although they can overlap with immigration status. A resident alien is a noncitizen who meets IRS criteria for tax residency. A nonresident alien does not meet those criteria, even if they reside in the United States temporarily.
In other words:
- A resident alien is a noncitizen who meets certain conditions that require them to pay taxes to the United States. These conditions include holding a green card or being physically present in the US for a specified time.
- A nonresident alien is a noncitizen who does not meet those conditions and is only subject to US taxes on income from US sources.
What makes someone a resident or nonresident alien?
A person is generally considered a resident alien by the IRS for tax purposes if they meet either of the following:
Green card test: They were a lawful permanent resident (green card holder) at any time during the calendar year.
Substantial presence test: They were physically present in the United States for at least 31 days during the current year, and 183 days over the past three years, using this formula:
- All days they were present in the current year, plus
- 1/3 of the days present in the previous year, plus
- 1/6 of the days present in the year before that
If they meet neither requirement, they are typically a nonresident alien for tax purposes.
There are some exceptions to this rule for people such as foreign government employees, students, teachers, and athletes.
For example:
- A or G visa holders, who are employees of a foreign government, temporarily living or working in the US
- F, J, M, or Q student visa holders are generally exempt for up to five years
- J or Q visa holders, who are teachers or trainees paid by a foreign entity, are generally exempt for two years
- A professional athlete temporarily present in the US to compete in a charitable sports event
Visa holders claiming an exemption from the substantial presence test must typically file Form 8843 with the IRS each year.
Closer connection exception
Even if someone meets the substantial presence test, they may still be treated as a nonresident alien if they qualify for the closer connection exception.
To qualify, a person must:
- Be present in the US for fewer than 183 days during the current year
- Maintain a tax home in a foreign country
- Demonstrate a closer connection to your foreign country than to the United States, based on factors like their home, family, bank accounts, and social or economic ties.
They must file IRS Form 8840 to claim this exception.
This exception is often used by individuals who are temporarily in the US but maintain primary ties such as family, permanent home, banking, and voting registration in another country.
