FlagSageKey facts
| Tax basis | Citizenship and residence |
|---|---|
| Tax year | Calendar year (January 1 to December 31) |
| Taxes citizens abroad | Yes |
| Residence tests recorded | 4 |
| Region | North America |
How United States decides tax residence
Each test is recorded separately with its own ID. Meeting or missing one test does not settle residence on its own.
Citizenship-based taxation: citizens and resident aliens abroad
IRS guidance says US citizens and resident aliens are subject to tax on worldwide income from all sources. Filing rules for income, estate and gift tax returns and estimated tax are generally the same whether the person lives in the United States or abroad. Living abroad changes which exclusions, credits and treaty rules may apply, not whether the person is a US taxpayer.
Green card test
A person is a US tax resident under this test if they are a lawful permanent resident of the United States at any time during the calendar year. IRS guidance says the status continues unless it is voluntarily given up in writing to USCIS, or is administratively or judicially terminated. Day counts do not matter for this test.
Substantial presence test: 31 days and a weighted 183-day count
A person meets the test if they are physically present in the United States on at least 31 days in the current year and on at least 183 days over a three-year period, counting all days in the current year, one third of the days in the first preceding year and one sixth of the days in the second preceding year. Any part of a day counts as a day of presence. Some days are excluded, such as certain commuting days from Canada or Mexico, transit of under 24 hours, and days as an exempt individual (for example certain students, teachers and trainees on F, J, M or Q visas who substantially comply with their visa).
Closer connection exception to the substantial presence test
A person who meets the substantial presence test may still be treated as not resident if, for the year, they were present in the United States on fewer than 183 days, kept a tax home in one foreign country for the entire year, and had a closer connection to that country than to the United States. The exception is not available to anyone who took steps toward, or had an application pending for, a green card during the year. The claim is made on Form 8840.
Arriving, leaving and part years
Expatriation rules (IRC 877A) apply to people who renounce US citizenship or end long-term green card residency on or after June 17, 2008. IRS guidance says a person is a covered expatriate if their average annual net income tax for the five prior years exceeds an inflation-adjusted amount ($206,000 for 2025), their net worth is $2 million or more on the expatriation date, or they do not certify on Form 8854 that they met all federal tax obligations for the five prior years. Anyone who expatriates must file Form 8854, and a $10,000 penalty may apply for not filing it. Relates to US-RES-01 and US-RES-02.
Reporting duties to check
- FBAR (FinCEN Form 114). US persons with a financial interest in, or signature authority over, foreign financial accounts whose aggregate value exceeded $10,000 at any time in the calendar year file an FBAR electronically through FinCEN's BSA E-Filing System, not with the tax return. It is due April 15 with an automatic extension to October 15. Source
- Form 8938 (Statement of Specified Foreign Financial Assets). Specified individuals attach Form 8938 to their income tax return when foreign financial assets exceed the thresholds for their filing status and where they live. For an unmarried taxpayer living in the US the IRS lists more than $50,000 on the last day of the year or more than $75,000 at any time; higher thresholds apply to joint filers and to taxpayers living abroad. Form 8938 does not replace the FBAR. Source
Social security
The United States has totalization agreements with a number of countries to avoid double social security taxation; IRS guidance says these must be considered when deciding whether US Social Security and Medicare tax, or a foreign country's social security tax, applies. The current list is kept by the Social Security Administration.
Living base
Lawful permanent residence (a green card) lets a person live and work in the United States indefinitely; other stays rest on nonimmigrant status. Immigration status and tax status are linked but not the same: a green card makes a person a tax resident under the green card test, while physical presence alone can make a person without a green card a tax resident under the substantial presence test.
How visas, permits and tax residence differ
Citizenship
Citizenship comes by birth, through a US citizen parent in some cases, or by naturalization. USCIS policy states the general requirement that a naturalization applicant has continuous residence in the United States as a lawful permanent resident for at least five years; other periods apply in specific cases. Citizens remain subject to US tax on worldwide income wherever they live.
Questions to take to a professional
- Given my citizenship or green card status, which US returns and information forms apply to me each year while I live abroad?
- How do I count my days of presence for the substantial presence test, and do any of my days fall under an exclusion or exempt-individual category?
- Do the facts of my year support a closer connection claim on Form 8840, and does anything in my immigration history block it?
- Which of my foreign accounts and assets fall within FBAR and Form 8938, and how do the two thresholds apply to me?
- How would a tax treaty between the United States and my other country of residence affect my position, and what must be disclosed to rely on it?
- If I were to give up citizenship or a long-term green card, how would the covered expatriate tests apply to my income history, net worth and filing record?
- Does a totalization agreement cover my work, and which country's social security system would apply?
Official authorities
- Internal Revenue Service (IRS)
- U.S. Citizenship and Immigration Services (USCIS)
- Financial Crimes Enforcement Network (FinCEN) BSA E-Filing
Sources
- Determining an individual's tax residency statusOfficial guidance
- U.S. tax residency – Green card testOfficial guidance
- Substantial presence testOfficial guidance
- Closer connection exception to the substantial presence testOfficial guidance
- U.S. citizens and resident aliens abroadOfficial guidance
- Report of Foreign Bank and Financial Accounts (FBAR)Official guidance
- Comparison of Form 8938 and FBAR requirementsOfficial guidance
- Expatriation taxOfficial guidance
- Totalization agreementsOfficial guidance
- Green Card | USCISOfficial guidance
- USCIS Policy Manual, Volume 12, Part D, Chapter 1 - Purpose and BackgroundOfficial guidance
Guides that mention United States
Other countries in North America
- Countries covered
- United States
- Sources
- 11 sources listed above
- Tax year
- Current rules as checked
- Review
- Not professionally reviewed
Sources checked November 8, 2026