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Level 1
posted Mar 18, 2021 5:11:59 PM

Substantial Presence Test

Assuming that one meets the Substantial Presence Test and therefore is deemed a Resident for tax purposes at what point in a tax year does the residency start?

 

For example, I spent some time in the US on vacation at the beginning of 2020 then went home to Canada.   Later in 2020 I started working in the US.  Together with days spent in the US in 2019 and 2018 I am well over the 183 day threshold for the Substantial Presence test.  

 

Does my residency start at the beginning or when the threshold is met which is later in the year?

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1 Best answer
Expert Alumni
Mar 18, 2021 7:02:54 PM

Your residency starts on the day you meet the substantial presence test. The IRS says, “If you meet the substantial presence test for a calendar year, your residency starting date is generally the first day you are present in the United States during that calendar year.”

 

If you are a U.S. resident for the calendar year, but you were not a U.S. resident at any time during the preceding calendar year, you are a U.S. resident only for the part of the calendar year that begins on the residency starting date.

 

See First Year of Residency in Publication 519 U.S. Tax Guide for Aliens

1 Replies
Expert Alumni
Mar 18, 2021 7:02:54 PM

Your residency starts on the day you meet the substantial presence test. The IRS says, “If you meet the substantial presence test for a calendar year, your residency starting date is generally the first day you are present in the United States during that calendar year.”

 

If you are a U.S. resident for the calendar year, but you were not a U.S. resident at any time during the preceding calendar year, you are a U.S. resident only for the part of the calendar year that begins on the residency starting date.

 

See First Year of Residency in Publication 519 U.S. Tax Guide for Aliens