183-Day Rule

The 183-day rule, also known as the substantial presence test, is a United States tax law that determines whether a nonresident alien is considered a resident alien for tax purposes. A nonresident alien is someone who is not a citizen or resident of the United States.

To meet the substantial presence test, a nonresident alien must be physically present in the United States for at least 31 days during the current year and 183 days during the three-year period that includes the current year and the two immediately preceding years.

The 183-day rule is important because it determines whether a nonresident alien is subject to U.S. income tax on their worldwide income. If a nonresident alien meets the substantial presence test, they are considered a resident alien for tax purposes and are subject to U.S. income tax on their worldwide income. If a nonresident alien does not meet the substantial presence test, they are considered a nonresident alien for tax purposes and are only subject to U.S. income tax on their income that is sourced from the United States.

There are a few exceptions to the 183-day rule. For example, a nonresident alien who is a student or teacher may be exempt from the substantial presence test if they meet certain requirements. Additionally, a nonresident alien who is a member of the clergy or a member of a religious order may be exempt from the substantial presence test if they meet certain requirements.

If you are a nonresident alien and you are not sure whether you meet the substantial presence test, you should consult with a tax advisor.

Here are some additional details about the 183-day rule:

• The 183-day rule is based on the number of days that a nonresident alien is physically present in the United States. This includes days spent in the United States on a visa waiver program, such as the B-1/B-2 visitor visa or the ESTA program for citizens of certain countries.
• The 183-day rule is not based on the number of days that a nonresident alien is present in the United States for work or other purposes.
• The 183-day rule is not based on the number of days that a nonresident alien is present in the United States for school or other educational purposes.
• The 183-day rule is not based on the number of days that a nonresident alien is present in the United States for medical treatment or other personal reasons.

If you are a nonresident alien and you are not sure whether you meet the substantial presence test, you should consult with a tax advisor.