Cross-Border Individuals
Your First US Tax Return as a New Immigrant: Resident vs. Non-Resident and the Substantial Presence Test
Your first US return turns on whether you are a resident or non-resident for tax purposes — which is different from immigration status. You are a tax resident if you hold a green card or meet the substantial presence test, a weighted count of days present over three years. Residents are taxed on worldwide income; non-residents only on US-source income.
New arrivals are often unsure which return to file. The answer drives what income the US can tax, so getting it right in year one matters.
Two ways to be a tax resident
You are treated as a US tax resident if either of these is true: you are a lawful permanent resident (green card holder) at any point in the year, or you meet the substantial presence test based on days physically present in the US. Tax residency is a separate concept from your visa or immigration category.
The substantial presence test
The test counts your days in the US using a weighted three-year formula:
| Year | Days counted |
|---|---|
| Current year | All days |
| Prior year | One-third of days |
| Two years ago | One-sixth of days |
If the weighted total is 183 or more (and you were present at least 31 days in the current year), you generally meet the test and are a resident for tax purposes. Certain people, such as some students and diplomats, are "exempt individuals" whose days do not count.
Resident vs. non-resident: why it matters
A US tax resident reports worldwide income and files Form 1040; a non-resident reports only US-source income and files Form 1040-NR. Many new immigrants have a "dual-status" first year — non-resident for part of it, resident for the rest — which has special rules. Worldwide-income reporting also brings foreign-account obligations like the FBAR into play.
Frequently asked questions
Does my visa decide if I'm a tax resident?
Not directly. Tax residency depends on holding a green card or meeting the substantial presence day-count test, which is separate from your immigration category, though some visa holders are exempt from counting days.
What is the substantial presence test?
A weighted count of days present in the US: all current-year days, one-third of prior-year days, and one-sixth of days from two years before. A total of 183 or more generally makes you a tax resident.
What is a dual-status year?
A year in which you are a non-resident for part and a resident for the rest, common in the year you arrive. It has special filing rules for how each part of the year is taxed.
Have a question about your own situation?
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Request a free consultationThis page is general educational information, not legal or tax advice for your specific situation, and does not create a client relationship. Tax rules, amounts, forms, and procedures change — verify against current IRS guidance or consult a qualified tax professional before acting.