Substantial Presence Test Calculator: Test if You are US Tax Resident

The substantial presence test calculator is here to let you test if you are a tax resident or not. As you know, your tax liability under US code 26 i.e Internal Revenue Code is dependent primarily on one fact. That is, whether you are a resident of the USA for tax purposes. Many tests determine US tax residency, but the most prominent test is the substantial presence test. You can read more on how to determine if you are a tax resident in the USA.

Substantial Presence Test Calculator

The physical presence test is not the only criterion for determining the tax resident status under US Code 26. You can use the comprehensive tax residency calculator.

Substantial presence test example

The substantial presence test for calendar year 2022 means it shall be determined whether you were physically present in the USA on at least

1.  31 days during 2022, and
2. 183 days during the 3-year period that includes 2022, 2021, and 2020, counting:
   1.  All the days you were present in 2022, and
   2. 1 /3rd of the days you were present in 2021, and
   3. 1/ 6th of the days you were present in 2020.

You can get comprehensive info on substantial presence tests from IRS here

What is a physical presence in the USA?

“Physical presence in the United States” means your physical presence in one or more of the following areas:

• In any of the  50 states and Washington D.C.
• The United States territorial waters (about 12 nautical miles out from the border between land and sea).
• The seabed and subsoil of those submarine areas that are adjacent to U.S. territorial waters and over which the United States has exclusive rights under international law .

How are the Days of physical presence computed?

Any day an individual was physically present in any United States for any part of the day counts as a day of physical presence. However, your presence in the USA is not counted in the following circumstances :

• Days commuting to work in the United States from a residence in Canada or Mexico for those who regularly commute from Canada or Mexico. The IRS define” regularly” as more than 75% of the workdays in the working period. Days in the United States for the entire day cannot be exempted on this basis.
• If you are in transit between two places outside the United States and you spend less than 24 hours in the United States.
• If you are present in the USA as a crew member of a foreign vessel.
• If you cannot leave the USA because of a medical condition that arose in the United States.
• Day one is an exempt individual (see the special status exemption section below).

What days are not counted for the physical presence test?

If you fall for any of the following types of individual , your days of presence may not be counted for physical presencetest provided you file Form 8843, Statement for Exempt Individuals and Individuals With a Medical with your tax return, if you file tax return. If you are not filing a tax return, you still must send Form 8843 to the address indicated in the instructions for Form 8843 by the due date for filing an income tax return.

• An individual temporarily present in the U.S. as a foreign government-related individual under an “A” or “G” visa, other than individuals holding “A-3” or “G-5” class visas.
• A teacher or trainee temporarily present in the U.S. under a “J” or “Q” visa, who substantially complies with the requirements of the visa.
• A student temporarily present in the U.S. under an “F,” “J,” “M,” or “Q” visa who substantially complies with the requirements of the visa.
• A professional athlete temporarily in the U.S. to compete in a charitable sports event.

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