Federal
Deep-dives on the US Substantial Presence Test, the closer-connection exception (Form 8840), exempt-individual categories, and SPT vs. green-card test.
13 guides in this category.
- Federal9 min read
Form 8840 and the closer-connection exception
Even if you meet the IRS Substantial Presence Test, you can avoid US tax-resident status by claiming closer connection on Form 8840, but only if you meet specific day-count and residency conditions.
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The SPT 3-year weighted formula, with worked examples
The IRS Substantial Presence Test uses a 3-year weighted day-count formula. Here it is in plain math, with multiple worked examples for visa types and travel patterns.
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Long-Term Resident & the 8-of-15-Year Rule: How 'Any Portion' Counts Years
The long term resident 8 of 15 years rule sets US exit tax exposure for green card holders, why any part of a tax year counts in full, and how to count yours.
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Green-Card Abandonment (Form I-407): Timing & Tax-Residency Implications
Form I-407 tax timing controls when your US residency ends and whether the exit tax applies. A clear guide to dating your green-card abandonment right.
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The US Non-Resident Alien Capital-Gains Trap: 183 Days & the 30% Rate
Non resident alien capital gains 30% rule: spend 183+ days in the US in one tax year and you can owe a flat 30% tax on net US-source gains. Who it catches.
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J-1 Exchange Visitors: SEVIS Day-Counting & the Exempt-Year Window
How the j1 visa substantial presence test works: the exempt-year window (2-of-7 vs 5 calendar years), SEVIS tracking, and the early-departure restart trap.
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FBAR & FATCA for Tax-Residency Planning: Reporting as a US Person
A green card or a passing Substantial Presence Test count makes you a US person who must report foreign accounts on the FBAR, and often Form 8938 under FATCA.
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Expatriation Exit Tax & Day-Counting: Form 8854 for Covered Expatriates
How the expatriation exit tax works under IRC 877A: the covered-expatriate tests, the 8-of-15-year green card rule, and why day-counting decides your fate.
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H-1B Holders & the Substantial Presence Test: Day-Counting for Skilled Workers
The H1B substantial presence test trips up skilled workers: H-1B days are not exempt. Learn how the IRS counts US days, transfers, and the dual-status year.
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Form 8840 Filing & Audit Defense: Proving Closer Connection to a Foreign Country
How to file the Form 8840 closer connection statement: the deadline, who carries the burden of proof, how the IRS scores your ties, and what wins an audit.
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First-Year Choice Election: Green-Card Arrivals & Dual-Status Filing
The first year choice green card question confuses many arrivals. Learn the 31-day, 75% presence test under IRC 7701(b)(4) and how dual-status filing works.
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F-1 to OPT to H-1B: Tax Residency Through the Transition
F1 OPT tax residency explained: the 5-year exempt window, when OPT days start counting toward the Substantial Presence Test, and the H-1B transition year.
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The Substantial Presence Test, calculated step-by-step
The IRS Substantial Presence Test (SPT) is a 3-year weighted formula that determines whether non-citizens are US tax residents. Here's the formula, exemptions, and how to calculate it correctly.
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