A resident alien is a non-U.S. citizen who resides in the United States and has been granted the legal right to live here permanently. This status is commonly referred to as lawful permanent residency, and individuals with this status are often called “green card holders.”
For tax purposes, the Internal Revenue Service (IRS) defines a resident alien as someone who meets either the Green Card Test or the Substantial Presence Test:
- Green Card Test: If you are a lawful permanent resident of the United States at any time during the calendar year, you meet this test.
- Substantial Presence Test: This test considers the number of days you are physically present in the U.S. over a three-year period, including the current year and the two preceding years. To satisfy this test, you must be physically present in the U.S. on at least:
- 31 days during the current year, and
- 183 days during the three-year period that includes the current year and the two years immediately preceding.
- All the days you were present in the current year,
- One-third of the days you were present in the first year before the current year, and
- One-sixth of the days you were present in the second year before the current year.
Meeting either of these tests classifies you as a resident alien for tax purposes, meaning you are generally subject to the same tax obligations as U.S. citizens, including reporting worldwide income.
The term “resident alien” can also refer to individuals who are not U.S. citizens but have been granted permanent residency status, allowing them to live and work in the U.S. indefinitely. This status is typically evidenced by a green card issued by the U.S. Citizenship and Immigration Services (USCIS).
Understanding your status as a resident alien is crucial, as it affects your legal rights, tax responsibilities, and eligibility for certain benefits in the United States.