Green Card, H1B, F1, L1, L2, OPT Taxation

IRS used list of tests to determine if you will be considered Resident or Non-Resident alien for tax purpose.

Resident Aliens: You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for calendar year.

Resident Alien – Tests

Green Card Test

Substantial Presence Test

Green Card Holder (Resident Alien)

Green Card Test

You are a resident for tax purposes if you are a lawful permanent resident or Green Card Holder of the United States at any time during calendar year.

Guidelines for filing your income, estate, and gift tax returns and paying estimated tax are generally the same as if you were a US citizen and you are taxed the same ways as a United States citizen.

As you are US Resident Alien you worldwide income is subject to U.S. income tax, regardless of where you reside. This means you have to report not only all income earned in the US but also earned in your home country or any other country. You can use the same filing statuses, exemptions, deductions and credits that are available to US citizens.

We are specializes in assisting expatriates from all over the world who are required to file a US income tax return with all their US and state income tax filing obligations. Its very important to take professional help because tax rules are complicated and difficult to understand even for US citizens. If you are our client we will help you with your tax preparation and planning.

Substantial Presence Test

This applies to F1, OPT, H1B, L1, L2 visa holders.

You will be considered a U.S. resident for tax purposes if you meet the substantial presence test. Since you could be in F1 Visa, OPT or H1B, additional rules applies to you.

F1 visa (OPT/CPT) : You are are considered as Non Resident Aliens for a period of up to Five years. Use Substantial Presence Test to determine your residency in 6th year.

H1B Visa, L1 Or L2 : Use Substantial Presence Test Calculator to calculate if you are a resident alien.

OPT and got H1B approved, all you have to do is check if you if you pass substantial presence test.

After reading this if you are confused, then talk to an Tax Specialist

Substantial Presence Test

You will be considered a U.S. Resident for tax purposes if you meet the substantial presence test for the Tax year.

To meet this test, you must be 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 that, counting:

All 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.

Example

You have been in the USA for preceding 3 years without leaving the country.

41 Days in current tax year

365/3 = 121.6

365/6 = 60.83

Total = 222 Days

222 Days is greater than 183 days. So, you would be considered as Resident Alien for Tax Purpose. And you can file 1040 or 1040 EZ tax form. If you are non-resident alien, you would have to use 1040NR or 1040NR-EZ for students on F1 and other visa types.

Students and their dependents present in the U.S.A in F, J, M, or Q immigration status for five calendar years  would be considered as non-resident alien. So, be careful with your math and don’t use the wrong tax forms to file your taxes.

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