Full question:
I am a Canadian Citizen 67 yrs old and I want to spend 6 months in Palm Springs..I know about form 8840 if I fill this out can I stay 183 days. does the substanial presence test apply to me. All my income is from Canada and my principal residence is in Canada.
- Category: Taxes
- Date:
- State: California
Answer:
If you are a non-U.S. citizen, you are generally considered a nonresident alien unless you meet specific criteria. You become a resident alien for tax purposes if you pass either the green card test or the substantial presence test within the calendar year (January 1 to December 31).
To meet the substantial presence test, you must be physically present in the U.S. for at least:
- Thirty-one days during the current year, and
- One hundred eighty-three days over a three-year period that includes the current year and the two preceding years, counting:
- All the days you were present in the current year,
- One-third of the days you were present in the first year before the current year, and
- One-sixth of the days you were present in the second year before the current year.
Days you are physically present in the U.S. count towards this test, but certain days do not count, such as:
- Days commuting from Canada or Mexico,
- Days in the U.S. for less than twenty-four hours while in transit,
- Days as a crew member of a foreign vessel,
- Days unable to leave due to a medical condition, and
- Days as an exempt individual.
Exempt individuals include foreign government-related individuals, teachers or trainees on specific visas, students on certain visas, and professional athletes in the U.S. for charitable events.
Even if you pass the substantial presence test, you may still be treated as a nonresident alien if you qualify for exceptions, such as:
- The closer connection exception available to all aliens,
- The closer connection exception available only to students.
To be treated as a nonresident alien despite passing the substantial presence test, you must:
- Be present in the U.S. for less than one hundred eighty-three days during the year,
- Maintain a tax home in a foreign country, and
- Have a closer connection to that foreign country than to the U.S.
For assistance in determining your tax status, consider consulting a U.S. tax professional.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.