Status Determination

The first thing you must do before filing your tax return is to determine whether you are considered a nonresident, resident or dual status alien for tax purposes. Your tax status is not the same as your immigration status.

You are considered a resident alien if you met one of two tests for the calendar year:

1. Green Card Test

The first test is the "green card test." If at any time during the calendar year you were a permanent resident of the U.S. according to the immigration laws, and your status has not been rescinded, you are considered to have met the green card test.

2. Substantial Presence Test

The second test is the "substantial presence test." To meet this test, you must have been physically present in the United States on at least 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. To satisfy the 183 days requirement, count all of 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. Do not count any day you were present in the United States as an "exempt individual" or commute from Canada or Mexico to work in the United States on more than 75% of the workdays during your working period.

An exempt individual is an alien in the following categories:

• A foreign government-related individual
• A teacher or trainee with a J or Q visa who substantially complies with the requirements of the visa
• A student with an F, J, M, or Q visa who substantially complies with the requirements of the visa;
• A professional athlete temporarily present in United States to compete in a charitable sports event.

In order to maintain your exempt status, you must file Form 8843.

Do not count any days you intended to leave, but could not leave the United States because of a medical condition that developed while you were in the United States . Even if you meet the substantial presence test, you can be treated as a nonresident alien if you are present in the United States for fewer than 183 days during the current calendar year, you maintain a tax home in a foreign country during the year, and you have a closer connection to that country than to the United States.

If you do not meet any of the tests above, you are considered a nonresident alien.

An alien whose status changes during the tax year from resident to nonresident, or vice versa, generally is considered a dual status alien for that year, and is taxed on the income for the two periods under the provisions of the law that apply to each period.

Closer Connection Test

If you determine that you are considered a resident alien by applying the substantial presence test but wish to remain as nonresident alien , you can still be treated as a nonresident alien if you:

• Are present in the United States for less than 183 days during the year
• Maintain a tax home in a foreign country during the year
• Have a closer connection during the year to one foreign country in which you have a tax home than to the United States . For determining whether you have a closer connection to a foreign country, your tax home must also be in existence for the entire current year, and must be located in the same foreign country for which you are claiming to have a closer connection.

If you wish to claim a closer connection to a foreign country, you must file Form 8840.

Determine Your Tax Status

If you are confused about all these rules to determine your tax status, you can register and determine your tax filing status for free. GTS determines your tax status in a step by step interview based on the algorithm included in the IRS Publication 519.