If you have a visa, you might be wondering if you have to file taxes in the United States. Well, it depends.

First a reminder that lawful permanent residents (green card test) who work in the US and US citizens have to file US taxes. Note that if you are a US citizen, you have to file taxes on your worldwide income and you might be subject to foreign income exclusion, foreign tax credits, etc. but still you are required to file.

If you are an immigrant with a visa (potentially not in the process of becoming lawful permanent resident as it would impact the Closer Connection Exception, or if you received a “green card” then you are a lawful permanent resident), you should consider the following factors:

  1. Substantial Presence test – If are more than 31 days of the current year or a complex calculation of the days over the three year period.
  2. Consider the potential exceptions in the Tax code.
    1. For example, some of the exceptions to the substantial presence test are based on temporary presence for:
      1. Foreign government related employee
      2. Teacher or Trainee
      3. Student
      4. Professional athlete
    2. Another exception is the closer connection to another country will treat the individual as a nonresident
      1. The closer connections requires you to spend less than half of the year (183 days), have a closer connection to another country and maintain a tax home in the foreign country (i.e. family – wife and kids, school, social activities, driving license, etc.)
  3. Keep in mind the tax treaties with other countries to avoid double taxation

Even after being considered a nonresident for tax purposes (not passed the green card test or the substantial presence), you might have to file if you meet certain requirements, which are usually related to having a) income connected to trade or business in the US, b) income from US that is fixed, determinable, annual or periodical , c) taxes still pending in the US (tax liability was not satisfied by withholding amount) and d) certain control or responsibility for an individual or entity with US income.

As this is an extremely complex area, each case should be reviewed individually to ensure all the factors are considered and an appropriate recommendation is provided to your case. Ensure you reach out to tax professionals knowledgeable on the Tax Code applicable to immigrants and visa type.

IRS Link – Taxation of aliens by visa type and immigration status

IRS Link – U.S. tax residency – Green Card test

IRS Link – Taxation of nonresident aliens