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

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Substantial presence test calculator is here to let you test if you are 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 resident of USA for tax purpose. There are many tests to determine US tax residency , but most prominent test is substantial presence test. You can read more on how to determine if you are tax resident in USA .

Substantial Presence Test Calculator

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

Physical Presence Test Calculator

Substantial presence test example

The substantial presence test for calendar year 2017 means it shall be determined whether you were physically present in USA on at least

  1.  31 days during 2017, and
  2. 183 days during the 3-year period that includes 2015, 2014, and 2013, counting:
    1.  All the days you were present in 2017, and
    2. 1 /3rd of the days you were present in 2016, and
    3. 1/ 6th of the days you were present in 2015.

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

What is physical presence in 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 territorial waters of the United States (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 the Days of physical presence computed ?

Any day that an individual was present physically in any United States for any part of the day counts as a day of physical presence, . However, your presence in USA not counted in 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 USA as a crew member of a foreign vessel.
  • If you are unable to leave USA on account of  a medical condition that arose in the United States.
  • Days one is an exempt individual (see the special status exemption section below).

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By Prashant Thakur

Prashant Thakur is a tax advisor . He has written two books on tax laws of India. He regularly writes on his paid-only website http://taxworry.com. He is learning about the Internal Revenue Code of USA as many of clients and readers are of India origin and also are tax resident of USA . So . solving their tax issues require reference to IRC of USA.