Being an international student (F1), will I pass the substantial presence test and be able to apply as US resident (for tax purpose) for 2016?

[carstudent]

I'm an international student (F1) arrived in the United States on 08-28-2012. I have not changed the immigration status since my arrival in the United States. I was using sprintax until last year. I'm curious to know if I can apply as a US resident for tax purpose or wait until next year?

[LinaJ2018 · Accepted solution]

As a F-1 visa holder, you are considered as "exempt" meaning not counting days for five years starting from the date of your first arrival in the United States.  After the five years period, you will start counting days by using the Substantial Presence Test  to see if you qualify to be treated as a US resident for tax purposes.

In your situation, you are considered as a nonresident from 2012-2016 filing a Form 1040NR.  Starting from 01/01/2017, you will start counting your days.  If you meet the Substantial Presence Test in 2017, you will be considered a US resident for tax purposes and file a Form 1040 for your tax year of 2017

For more examples, see :https://www.irs.gov/individuals/international-taxpayers/alien-residency-examples

[afdengo]

Would the same apply if the person has been in the US over 5 years but on two separate visas?

For example, one F-1 visa for bachelor's degree (5 years) and a second F-1 visa for a graduate degree at a different school (2 years) with a year in between the two visas

[afdengo]

@LinaJ2018 @LinaJ2020 

[ahcalde]

@afdengo have you ever been able to answer that question? I am in a similar situation:

https://ttlc.intuit.com/community/taxes/discussion/re-substantial-presence-test-for-f-1-student-resi...

[LinaJ2020]

The five years exempt (not counting days) on F-visa is only allowed once in Lifetime.  Therefore, you are considered as a US resident after your first five years expired.   

Per IRS, as a student you are exempt for 5 calendar years. This is a lifetime exemption. So once you used up the 5 years, you cannot be exempt again on a F1 or J1 student visa.

For more information, click here: https://www.irs.gov/taxtopics/tc851

@afdengo

@ahcalde

[ahcalde]

@LinaJ2020 I see. So yeah, I am considered a resident for tax purposes in 2020. I have a follow-up question.

What happens if my employer has not been withholding my social security and medicare taxes? How do I work with them to get this corrected?

I assume being a resident, I am no longer exempt from those taxes, and the non-exemption started on 01/01/2020?

@afdengo 

[ReneeM7122]

Correct, if you are considered a resident alien, then you should complete form W-4 and give it to your employer in order to get withholding taken from your wages.  If you're wondering how to complete this form, don't worry.  TurboTax has a special withholding calculator that you can use to help you claim the correct allowances and so on, so you do not over or under withhold.  Once you've completed the questions, you can download the form.

Here is the link to the calculator.

@ahcalde

[ahcalde]

@ReneeM7122 I understand. I was caught by surprise by the fact that I am considered a resident during 2020. So I am just wondering what happens when the employer doesn't withhold those FICA taxes when it should. How do I work with my employer to get it corrected?

[npierson7]

It might not need to be corrected. If your received Form 1099 from your employer, then you're responsible to pay FICA taxes with your tax return. If you received W-2 with 0 in Social Security wages, your employer might be exempt form the Social Security taxes.

[ahcalde]

@npierson7 Yeah, but it's not the case. In my first paycheck they took those out, then I told them to correct them because I was exempt. Then I turned non-exempt last year and just found out this week. So do I just need to contact them to have this corrected?

[afdengo]

Hey all,

I did figure this out. After 5 years you are no longer exempt. 

if you’re employer has not been withholding FICA taxes, when you do your taxes you will end up having to pay this.

contact your payroll department so they don’t continue withholding these taxes. Other than that, just know that when you file, you count as a resident alien and owe FICA taxes 

[npierson7]

Yes, then you need to contact your employer and update your status.

[ahcalde]

@afdengo I see. So they didn't need to issue an updated W-2? Did you contact them about your non-exemption when you found out?

[Madu6247]

Hi, I arrived in the US as an au pair (J1 visa) in April 8th 2018, I left the country for 3,5 months in 2020 (May 4th to August 20th) and then came back with an F1 visa. I am currently on a F1 visa. How do I calculate my substantial presence test? Knowing that I have taxes to pay for last year and my 4 months as an au pair.