Understanding the Substantial Presence Test: Are You a Nonresident for Tax Purposes?
📍 What Is the Substantial Presence Test?
When living, studying, or working in the U.S. on a visa, your tax status isn’t determined solely by your visa type—it also depends on how much time you’ve spent in the country.
The Substantial Presence Test (SPT) is used by the IRS to decide whether you are considered a resident or nonresident alien for tax purposes.
Your status matters because it determines:
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Which tax return you must file (Form 1040 or 1040-NR)
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What income you need to report
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Which deductions or tax credits you may be eligible for
If you’re on an F-1, J-1, or H-1B visa, it’s essential to understand how this test applies to you.
📊 How to Calculate the Substantial Presence Test
To meet the SPT, you must be physically present in the U.S. for at least:
✅ 31 days during the current tax year, and
✅ 183 days during the current and two preceding years combined, using this formula:
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All days in the current year = count as 1
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Days in the first previous year = count as 1/3
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Days in the second previous year = count as 1/6
Example:
If you were in the U.S. for:
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120 days in 2024 → 120 × 1 = 120
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180 days in 2023 → 180 × ⅓ = 60
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210 days in 2022 → 210 × ⅙ = 35
Total = 215 days, which means you meet the SPT and are considered a resident alien for tax purposes.
🚫 Who Is an Exempt Individual?
Some visa holders don’t count days toward the SPT, including:
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F-1 and J-1 students (exempt for up to 5 years)
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J-1 researchers, teachers, and scholars (exempt for up to 2 years)
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Certain foreign government employees or diplomats
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Professional athletes competing in charitable events
🧮 Case Studies: How the SPT Applies
Case 1: F-1 Student
Sophia, from Germany, has studied in the U.S. since 2023.
As an F-1 student, she’s exempt from counting days for 5 years, so she’s a nonresident alien in 2025 and must file Form 1040-NR.
Case 2: J-1 Researcher
Carlos arrived in 2023 on a J-1 visa. He’s exempt for 2 years but starts counting days in 2025.
If he stays longer and exceeds 183 days, he becomes a resident alien for tax purposes.
Case 3: H-1B Worker
Amit, on an H-1B visa, moved to the U.S. in 2025. Since H-1B holders aren’t exempt, his 183+ days make him a resident alien.
Case 4: Transitioning from F-1 to H-1B
Zara studied on an F-1 visa from 2020–2024, then switched to H-1B in 2025.
She begins counting days once she changes status, which could make her a resident alien that year.
🚗 Commuting and the SPT
If you commute to work in the U.S. from Canada or Mexico, your days may count differently under special IRS rules.
This can affect whether you’re taxed as a resident or nonresident.
🌎 Closer Connection Exception
Even if you meet the SPT, you may still claim nonresident status if:
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You spent fewer than 183 days in the U.S. in the current year, and
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You can prove a closer connection to another country (for example, home, family, or permanent residency).
To claim this, file Form 8840 with your tax return.
🟩 SPT vs. Green Card Test
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SPT: Based on days of physical presence.
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Green Card Test: Based on immigration status.
Green Card holders are automatically resident aliens for tax purposes, regardless of time spent in the U.S.
🧾 SPT and Form 1040-NR
If you do not meet the Substantial Presence Test, you must file as a nonresident using Form 1040-NR.
This determines which income you report and which tax benefits you can claim.
✅ Need Help Determining Your Tax Residency?
J1 Summer Tax Back can help you figure out whether you qualify as a resident or nonresident and ensure you file the correct tax forms.
💼 What we offer:
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Residency status determination
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Form 1040-NR preparation
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Step-by-step online process
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24/7 expert tax support
👉 Check your residency and file correctly with J1 Summer Tax Back today!