Who is u.s. resident alien

Exceptions to the time counted toward the Substantial Presence Test for students and scholars in F-1 and J-1 status and their dependents : A J-1 professor or researcher who is complying with the requirements of the visa, does not count days for the first two calendar years. An F-1 or J-1 student, who is complying with the requirements of their visa, does not count days for the first five calendar years. CIE Events There are no upcoming events.

If there is an indication that an alien will become a permanent resident or resident alien during the calendar year, review the individual tax implications and begin withholding applicable taxes immediately.

The date the individual becomes a resident alien is the "Residency Change" date. Different tax and reporting rules go into effect immediately and must be applied.

Income tax withholding rules are applicable to the residency status of the individual at the date of payment. SS and Medicare taxes are only applicable to employees. Therefore, see the following section on employee residency changes during the year. Social Security and Medicare taxes are based on the "Residency Starting date.

The Residency Starting date is the beginning date for activity in a calendar year. Therefore, SS and Medicare taxes may be applicable retroactively to the beginning of activity in a calendar year even though the Residency Change date is later in a calendar year. As mentioned in the previous section income taxes are based on residency status at time of payment.

SS and Medicare tax withholdings for employees could be retroactive. Year end review of the employee residency status for tax purposes is important. When evaluating the residency status for tax purposes for an employee for the new year, if there is any indication that the employee will become a resident alien for tax purposes during the calendar year, you must ensure the record is coded to withhold SS and Medicare taxes at the beginning of the calendar year.

This ensures taxes are withheld appropriately starting at the beginning of the year activity. Refer to Social Security and Medicare Taxation. If the appropriate SS and Medicare taxes are not withheld for any portion of the year, operating locations must attempt to recover the taxes from the alien, retroactively for the period withholdings were missed. The operating location should not pay the withholding amount for the alien, because the IRS views taxes paid by an employer for an employee as additional income for that person because the taxes were not directly withheld from the employee.

An I record is given to each alien to complete upon his or her admission to the US. The alien is required to keep this document in his or her possession as documentation of the visa or NAFTA status under which the alien was admitted and the period of the authorized stay in the US. Aliens who hold an F-1 or J-1 visa will have a "DS" duration of status indicated on the I as the period of authorized stay. Operating locations may obtain or review the following forms to determine the period of authorized stay refer to Forms, Employee: Personnel Administration for sample forms of DS and Ia :.

Feedback Was this document clear and easy to follow? Please send your feedback to webfeedback rfsuny. Substantial Presence Test A non-resident alien is classified as a resident alien for tax purposes if they were physically present in the U. If a person does not meet either the Green Card or Substantial Presence Test, then that person is classified as a non-resident alien.

Non-resident aliens are taxed only on their income from sources within the U. Non-resident aliens are taxed on earnings received while living in the U.

If the Visa type is F-1 or J-1, the non-resident alien may be exempt from federal taxes only if the country the alien previously lived in before arriving in the U. You have this status if you have an alien registration card, known by you and I as a green card. You pass the test if you were physically present in the U. This includes:.

The main difference between the two is the paperwork and what income is taxed. Resident aliens in the U. In some cases, you can still be considered a nonresident alien even if you meet the substantial presence test. To qualify, you must:.