Tax Specialists for Expats & Startups in America

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Am I a US tax resident?

For many entrepreneurs and expats that are looking to move the US, income tax is front of mind.  A common question is when will I have to pay tax in the US or file a tax return in the US?

A permanent resident (green card holder) or a US citizen will be a resident regardless of how much time they spend in the US and a non immigrant Visa holder will be resident if when they apply the formula in the Substantial Presence Test, they are deemed to have spent more than 183 days in the US.  This includes days in the US on the Visa Waiver program (Esta).

The Substantial presence test provides that an individual will be a US resident if they are physically present in the US in the current year for 31 days and when they apply the following formula they number is higher than 183:

  • Current Year x 1 (Current Year);
  • Year prior to Current Year x 1/3 (Year 2);
  • Year prior to Year 2 x 1/6 (Year 3).

If you are looking to work in the US or expand your start up into the US or raise capital in the US, you really need to be on top of the residency rules as they can have a major impact on your personal financial circumstances.