Federal Income Tax: Newcomer Basics in the United States
A newcomer's first US tax question is not how much they owe but whether the country treats them as a tax resident.
The IRS decides this with two objective tests: the green card test and the substantial presence test. This guide orients you to those tests and which form exists for each status. It is general information, not tax advice, and does not compute anyone's tax.
Estimated time
Working out your residency status from your own day-count and visa facts takes most newcomers under an hour to read through; the actual filing happens later, on the IRS annual schedule.
Cost
$0
Step-by-Step
- 1
Check the Green Card Test First
- If you are a lawful permanent resident — you hold a green card — at any time during the calendar year, you are a resident alien for tax purposes for that year
- The day count does not change this; the green card test settles your status on its own
- If this applies to you, you can stop the residency analysis here and move to mapping your status to a return
💡 Tip: The green card test is the simpler of the two resident tests: permanent-resident status establishes tax residency regardless of how many days you were physically present in the country.
- 2
If You Have No Green Card, Count Your Days
If you are not a lawful permanent resident
- First check the current-year minimum: you must be present in the United States on enough days this year to even be in range of the test
- A day of presence is broad — any day you are physically in the country at any time during the day generally counts
- If you fall below the current-year minimum, you do not meet the substantial presence test and are a nonresident alien on this test
💡 Tip: The IRS substantial presence test has two parts that both must be satisfied: presence "at least 31 days during the current year" and a weighted "183 days during the 3-year period" that includes this year and the two before it.
- 3
Apply the Three-Year Weighting
If you met the current-year day minimum
- Add all of your days present in the current year
- Add one-third of your days present in the first year before the current year
- Add one-sixth of your days present in the second year before the current year
- If the weighted total reaches 183, you meet the substantial presence test and are a resident alien on this test
💡 Tip: Prior-year days still count at reduced weight, so someone who was in the US in earlier years can cross the 183 threshold sooner than a single-year glance suggests.
- 4
Subtract Days That Do Not Count
- Remove days you regularly commuted to work in the US from a residence in Canada or Mexico
- Remove days in transit through the US for under 24 hours between two places outside the US, and days you were here as a crew member of a foreign vessel
- Remove days you could not leave because of a medical condition that arose while here, and any days you were an exempt individual
💡 Tip: Exempt individuals include foreign-government-related people on A or G visas, teachers and trainees on J or Q visas, students on F, J, M, or Q visas, and certain professional athletes — but their days are excluded only with a timely filing.
- 5
File Form 8843 If You Are an Exempt Individual
If you are a student, scholar, or other exempt individual excluding days
- Exempt individuals exclude their US days from the count by filing Form 8843, Statement for Exempt Individuals and Individuals with a Medical Condition
- The same form is used by individuals who could not leave the US because of a medical condition
- File it on time; the exclusion is not automatic
⚠️ Watch out: If you skip Form 8843, your days are counted, which can make you a resident by accident. The IRS is explicit: "If you do not timely file Form 8843, you cannot exclude the days." This single paperwork miss can flip a student or scholar from nonresident to resident.
- 6
Map Your Status to a Return
- Resident alien: file Form 1040 or Form 1040-SR, the same returns US citizens use, reporting worldwide income
- Nonresident alien: file Form 1040-NR, U.S. Nonresident Alien Income Tax Return, reporting US-source income
- Changed status mid-year: file a dual-status return as described in IRS Publication 519
💡 Tip: This guide ends at which return your status points to. It does not walk through completing that return; your actual filing should follow the IRS instructions or a qualified professional's guidance.
- 7
Get a Tax ID If You Do Not Have One
- Any of these returns requires a US tax identification number — either a Social Security number or an Individual Taxpayer Identification Number (ITIN)
- If you are eligible for a Social Security number, you use that; if you are not eligible for an SSN but have a US filing requirement, you obtain an ITIN
- Determining your status tells you whether you have a filing obligation; obtaining the SSN or ITIN is the separate step that lets you actually file
💡 Tip: The tax-ID step is load-bearing: a person who discovers a filing obligation but holds neither an SSN nor an ITIN must obtain the one they are eligible for before they can file.
Local Tips from the Community
- This guide is orientation, not preparation: it answers whether the US treats you as a tax resident and which return that status points to. It does not calculate your tax, recommend a filing position, or interpret a tax treaty for your situation. This is general information, not tax advice — consult the IRS or a qualified tax professional for your situation.
- The single most important early fact is your status, because it decides both what income the US can tax and which form you file. A resident alien is taxed on worldwide income on Form 1040; a nonresident alien is taxed only on US-source income on Form 1040-NR. Settle the status question before anything else.
- If you arrived partway through the year, you may be a dual-status alien — a nonresident for part of the year and a resident for the rest. The detailed income-splitting mechanics live in IRS Publication 519; an orientation guide cannot resolve them for your facts.
- Students and scholars on F, J, M, or Q visas are often exempt individuals whose US days do not count toward the substantial presence test — but only if they file Form 8843 on time. Missing it can flip you to resident purely on a paperwork slip.
What Could Go Wrong
Determine your residency status: You assume you are a resident simply because you live in the US
Recovery: US tax residency is decided by the green card test and the substantial presence test, not by where you feel at home. Apply the objective tests to your own facts; someone on a short assignment may be a nonresident, and someone present long enough may be a resident even without a green card.
Exclude exempt-individual days: You are an exempt individual but did not file Form 8843
Recovery: Without a timely Form 8843 your US days are counted, which can make you a resident unintentionally. File the statement on time to preserve the exclusion; for a past miss, consult the IRS instructions or a qualified professional about your options.
Match your status to the correct return: You file the return for the wrong status
Recovery: Residents file Form 1040 or 1040-SR; nonresidents file Form 1040-NR. Using the wrong one mismatches the income-reporting rules that apply to you. Confirm your status under the tests first, then map it to the matching return.
Costs
| Item | Amount | Payment | Notes |
|---|---|---|---|
| Determining your tax-residency status | $0 | N/A | The substantial presence test is a self-applied rule the IRS publishes; there is no charge to read it, apply it, or file Form 8843 or Form 8840 to claim an exclusion or exception. |
| Filing a federal income tax return | $0 | N/A | The IRS charges no fee to file a federal income tax return itself. Any tax actually owed depends entirely on your individual circumstances, which only the IRS or a qualified professional can determine. |
- Payment:
- N/A
- Notes:
- The substantial presence test is a self-applied rule the IRS publishes; there is no charge to read it, apply it, or file Form 8843 or Form 8840 to claim an exclusion or exception.
- Payment:
- N/A
- Notes:
- The IRS charges no fee to file a federal income tax return itself. Any tax actually owed depends entirely on your individual circumstances, which only the IRS or a qualified professional can determine.
FAQ
Costs
Is there a fee to figure out my status or to file?
No. The residency tests are public IRS rules you apply to your own facts at no charge, and the IRS charges no fee to file a federal income tax return itself. Any tax actually owed is a separate matter that depends on your circumstances.
General
Does this guide tell me how much tax I will owe?
No. It explains how the United States decides whether you are a tax resident and which return that points you to; it does not compute liability or tell you what you personally owe. This is general information, not tax advice — consult the IRS or a qualified tax professional for your situation.
Do I need a Social Security number or ITIN to file?
Yes — a return requires one tax ID. Use a Social Security number if you are eligible; otherwise obtain an Individual Taxpayer Identification Number (ITIN). See the Social Security number guide and the ITIN guide for how to get each.
Can I be treated as a nonresident even if my day count is high?
Possibly, through the closer-connection exception, claimed on Form 8840. It has four conditions, including being present under 183 days in the year and maintaining a tax home in a foreign country, and it is unavailable to anyone who applied for, or has pending, lawful-permanent-resident status. Whether you qualify is a determination for the IRS or a professional, not this guide.
After This Process
- → Social Security number — a return requires an SSN or ITIN; if you are work-authorized and eligible, the SSN is the tax ID you use (see the Social Security number guide)
- → ITIN (Individual Taxpayer Identification Number) — if you have a US filing requirement but are not eligible for an SSN, this is the tax ID you obtain (see the ITIN guide)
- → IRS Publication 519, U.S. Tax Guide for Aliens — the IRS reference covering dual-status mechanics and worldwide-income rules beyond this orientation
Sources
- IRS — Determining an individual's tax residency status (irs.gov ↗)
- IRS — Substantial presence test (irs.gov ↗)
- IRS — Taxation of U.S. Residents (irs.gov ↗)
- IRS — Taxation of nonresident aliens (irs.gov ↗)
- IRS — Dual-status individuals (irs.gov ↗)
- IRS — About Form 8843 (irs.gov ↗)
- IRS — About Form 1040-NR (irs.gov ↗)
- IRS — Closer connection exception to the substantial presence test (irs.gov ↗)
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More in United States
8 sources cited last accessed 2026-05-29
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- T1Internal Revenue Service (IRS) 2026-05-29
A noncitizen is treated as a nonresident of the United States for tax purposes unless they meet the green card test or the substantial presence test for the calendar year. The statutory categories of resident alien and nonresident alien themselves exist under the Internal Revenue Code at 26 U.S.C. § 7701(b); this IRS guidance supplies the operational determination. A person whose status changes during the year is a dual-status alien who files a dual-status return.
irs.gov - T1Internal Revenue Service (IRS) 2026-05-29
The substantial presence test has two parts that both must be met: presence at least 31 days during the current year, and 183 days over the 3-year period counting all current-year days, one-third of first-prior-year days, and one-sixth of second-prior-year days. A day of presence is any day physically present in the US at any time. Commuting, transit-under-24-hour, foreign-crew, medical-condition, and exempt-individual days are excluded; if Form 8843 is not timely filed, those exempt days cannot be excluded.
irs.gov - T1Internal Revenue Service (IRS) 2026-05-29
U.S. residents are generally taxed in the same way as U.S. citizens, on worldwide income, and should file Form 1040, U.S. Individual Income Tax Return, or Form 1040-SR. This page is the live IRS guidance for taxation of US residents; an earlier guessed slug containing the resident-aliens form returned a dead link and is not cited.
irs.gov - T1Internal Revenue Service (IRS) 2026-05-29
A nonresident alien is an alien who has not passed the green card test or the substantial presence test, and is taxed only on US-source income. Nonresident aliens required to file an income tax return must use Form 1040-NR, U.S. Nonresident Alien Income Tax Return.
irs.gov - T1Internal Revenue Service (IRS) 2026-05-29
A dual-status individual is one who changes their tax status during the current year, which usually occurs in the year of arrival or departure, and must file a dual-status return as described in Publication 519, U.S. Tax Guide for Aliens.
irs.gov - T1Internal Revenue Service (IRS) 2026-05-29
Form 8843, Statement for Exempt Individuals and Individuals with a Medical Condition, is used by exempt individuals to exclude days of US presence from the substantial presence test, and by individuals who could not leave the US because of a medical condition.
irs.gov - T1Internal Revenue Service (IRS) 2026-05-29
Form 1040-NR is the U.S. Nonresident Alien Income Tax Return — the federal return for nonresident aliens with a US filing requirement.
irs.gov - T1Internal Revenue Service (IRS) 2026-05-29
The closer-connection exception, grounded in Internal Revenue Code Section 7701(b)(1)(B), lets a person who meets the day count still be treated as a nonresident if they were present under 183 days, maintained a tax home in a foreign country during the entire year, had a closer connection to that country, and had not applied for or pending lawful-permanent-resident status. It is claimed on Form 8840, Closer Connection Exception Statement for Aliens.
irs.gov