All is take is 31 days to make anyone pay taxes to the US even if you are a Foreign National

The Substantial Presence Test is a criterion used by the United States Internal Revenue Service (IRS) to determine an individual's tax residency status. This test is particularly relevant for foreign nationals, including non-U.S. citizens, temporary residents, and visa holders, to determine whether they are considered U.S. tax residents.

Here are the key components of the Substantial Presence Test:

1. Physical Presence Requirement:

   • The individual must be physically present in the United States on at least:

     • 31 days during the current calendar year, and

     • 183 days during the three-year period that includes the current year and the two years immediately before that.
       

2. Calculation of Days:

   • Each day the individual is present in the U.S. during the current year counts as a full day.

   • Each day the individual was present in the U.S. during the first preceding year counts as one-third of a day.

   • Each day the individual was present in the U.S. during the second preceding year counts as one-sixth of a day.
     

3. Substantial Presence Formula:

   • The total of these weighted days should equal 183 or more to meet the Substantial Presence Test.

   • The formula is: Current year days + (1/3 preceding year days) + (1/6 second preceding year days) ≥ 183.

4. Exemptions:

   • Certain days may be excluded from the calculation. For example, days spent in the U.S. as a student on an F, J, M, or Q visa, or as a professional athlete competing in a charitable sports event, may not be counted.

   • Days you are in the U.S. for less than 24 hours, when you are in transit between two places outside the United States.

   • Days you are in the U.S. as a crew member of a foreign vessel.

   • Days you are unable to leave the U.S. because of a medical condition that develops while you are in the United States.

   • Days you are an exempt individual

5. Exempt Individuals

   • 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.

If an individual meets the criteria of the Substantial Presence Test, they are generally treated as a U.S. tax resident for income tax purposes, and their worldwide income is subject to U.S. taxation. It's crucial for individuals who may be close to meeting the test to carefully track their days of presence and seek professional tax advice to understand their specific tax obligations.

These 2 sources will be extremely useful:

Substantial Presence Test | Internal Revenue Service (irs.gov)

Publication 519 (2023), U.S. Tax Guide for Aliens | Internal Revenue Service (irs.gov)

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