attaching link to IRS for more details:
https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test
Upvote post so others can find this, also feel free to correct if i got my facts wrong.
Let me explain difference in filling as non-resident and resident,
residents are taxed for all the income in USA as well outside, whereas NR are taxed only for income in USA.
so for students, short answer it doesn't matter. You would be fine if you file thru turbotax which is free or through sprintax which charges fee.
Personal suggestion, if you have complicated condition like me (if you have 1099-Misc) file through sprintax.
if you are only filling W-2s go ahead with turbotax. or fill up details on both and check what estimated refund you are getting (it would be same in most cases but at sometimes sprintax can give you better estimate).
Sprintax is basically NR filling partner of turbotax, if you dont know what it is.
Basically Resident aliens are non-U.S. citizens who have green cards or who have been in the country for at least 183 days (acc to the presence test) over a three-year period including the current year. Nonresident aliens are those who are legally present in the U.S. but do not have green cards, such as tourists.
now for students it depends if you have been USA for 183 days you can file as resident (ie. turbotax)
What is presence test?
You will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States (U.S.) on at least:
- 31 days during the current year, and
- 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
- All the days you were present in the current year, and
- 1/3 of the days you were present in the first year before the current year, and
- 1/6 of the days you were present in the second year before the current year.
Example:
You were physically present in the U.S. on 120 days in each of the years 2012, 2013, and 2014. To determine if you meet the substantial presence test for 2014, count the full 120 days of presence in 2014, 40 days in 2013 (1/3 of 120), and 20 days in 2012 (1/6 of 120). Since the total for the 3-year period is 180 days, you are not considered a resident under the substantial presence test for 2014.
There are exemptions to this as well
Exempt Individual
Do not count days for which you are an exempt individual. The term "exempt individual" does not refer to someone exempt from U.S. tax, but to anyone in the following categories:
- An individual temporarily present in the U.S. as a foreign government-related individual under an “A” or “G” visa, other than individuals holding “A-3” or “G-5” class visas.
- A teacher or trainee temporarily present in the U.S. under a "J" or "Q" visa, who substantially complies with the requirements of the visa.
- A student temporarily present in the U.S. under an "F," "J," "M," or "Q" visa, who substantially complies with the requirements of the visa.
- A professional athlete temporarily in the U.S. to compete in a charitable sports event.
