When living or working in the US on a visa, your tax status isn’t just determined by your visa type – it also depends on how much time you’ve spent in the country.
The US Substantial Presence Test (SPT) is a key factor in determining whether you are considered a resident or nonresident alien for tax purposes.
Why does this matter? Your tax status affects which tax return you must file, the deductions and credits you’re eligible for, and whether you need to report your worldwide income to the IRS.
Many nonresidents, including those on F-1, J-1, and H-1B visas, must carefully track their days in the US to determine their tax obligations.
In this blog, we’ll break down all you need to know about the Substantial Presence Test!
What is the Substantial Presence Test?
The IRS Substantial Presence Test (SPT) is used by the to determine if a non-US citizen qualifies as a resident alien for tax purposes based on the number of days they have been physically present in the US over a three-year period.
If you meet the SPT, you are taxed as a US resident, meaning you must report worldwide income on your tax return. If you do not meet the test, you are considered a nonresident alien and are generally only taxed on US-sourced income.
How to calculate the Substantial Presence Test
To meet the Substantial Presence Test, an individual must be physically present in the US for at least:
- 31 days during the current tax year, AND
- 183 days over the last three years, using the following weighted formula:
- All days in the current year count as 1 full day each
- Days in the previous year count as 1/3 of a day each
- Days in the second previous year count as 1/6 of a day each
Example Substantial Presence Test calculator:
If you were in the US for:
- 120 days in 2024 (current year) → 120 x 1 = 120 days
- 180 days in 2023 → 180 x 1/3 = 60 days
- 210 days in 2022 → 210 x 1/6 = 35 days
Total: 120 + 60 + 35 = 215 days (which is more than 183 days)
This individual meets the Substantial Presence Test and is considered a resident alien for tax purposes in 2023.
Who is an Exempt Individual?
Certain visa holders are considered exempt individuals and do not count their days toward the Substantial Presence Test. This includes:
- F-1 and J-1 students (for up to 5 years)
- J-1 non-students such as researchers, scholars, and teachers (for up to 2 years)
- Certain foreign government employees and diplomats
- Professional athletes competing in charitable events
Case Studies: How SPT affects different visa holders
Case 1: F-1 Visa Student
Sophia, an international student from Germany, has been studying in the US since 2023 on an F-1 visa.
Since F-1 students are exempt from counting days for 5 years, she does not meet the SPT for 2025 and is considered a nonresident alien for tax purposes.
She files Form 1040-NR instead of Form 1040.
Case 2: J-1 Visa Researcher
Carlos arrived in the US on a J-1 visa as a visiting scholar in 2023. He is exempt for two years but will start counting days in 2025.
If he remains in the US beyond the exemption period and meets the 183-day rule, he will become a resident alien for tax purposes.
Case 3: H-1B Visa Holder
Amit, an H-1B visa holder, moved to the US for work in 2025. Unlike F-1 and J-1 visas, H-1B visa holders do not qualify for exemptions.
Since Amit has been in the US for more than 183 days over the past three years, he meets the SPT and must file as a resident alien.
Case 4: Transitioning from F-1 to H-1B
Zara was an F-1 student from 2020-2024 and will transition to an H-1B visa in October 2025. Since she was exempt while on her F-1 visa but started counting days upon switching to H-1B, she may meet the SPT in 2025 and need to file as a resident alien for tax purposes.
Read more:
Commuting and the Substantial Presence Test
Individuals who commute regularly from Canada or Mexico may have special tax rules.
If you live in Canada but work in the US, your days may count differently toward the Substantial Presence Test.
This can impact whether you are taxed as a resident or nonresident alien.
Sprintax will examine your situation and determine if you are a resident or nonresident alien for tax!
Closer Connection Exception to the Substantial Presence Test
Even if you meet the SPT, you may still avoid being taxed as a resident if you qualify for the Closer Connection Exception. This applies if:
- You spent less than 183 days in the US in the current year
- You can prove a stronger connection to another country (e.g., permanent residence, family, tax home)
If eligible, you must file Form 8840 with the IRS to claim this exception.
Substantial Presence Test vs. Green Card Test
While the SPT determines tax residency based on days present, the Green Card Test applies to individuals who have been granted lawful permanent resident status (Green Card holders).
Green Card holders are automatically resident aliens for tax purposes, regardless of time spent in the US.
Substantial Presence Test and Form 1040-NR
If you do not meet the Substantial Presence Test, you must file as a nonresident alien using Form 1040-NR instead of Form 1040.
This affects how you are taxed and what deductions and credits you can claim.
Understanding the Substantial Presence Test is crucial for nonresidents in the US to ensure tax compliance.
Whether you are a student, researcher, worker, or commuter, your tax status can impact your filing requirements. If you’re unsure about your status, Sprintax can help you determine whether you qualify as a resident or nonresident and ensure you file the correct tax forms.
Need help with your tax return? Get started at Sprintax Returns here!
