A non-resident alien is a person who is not a U.S. citizen and who fails both tests the IRS uses to classify someone as a U.S. resident for tax purposes: the Green Card Test and the Substantial Presence Test. The label controls what income the U.S. can tax, which forms you file, whether you can take the standard deduction, and how much of your U.S. property the federal government can reach when you die. Tax residency is separate from immigration status, so a valid U.S. visa does not by itself make you a resident alien.
The Two Tests That Assign the Status
You are a resident alien if you pass either test. Fail both, and you are a non-resident alien.1Internal Revenue Service. Determining an Individual’s Tax Residency Status
Green Card Test
If you were a lawful permanent resident at any point during the calendar year, you pass. That status remains in effect until it is officially rescinded or you formally abandon it. Leaving the country or letting the card expire does not end U.S. tax residency on its own.
Substantial Presence Test
Physical presence alone can make you a resident. You pass this test if you were in the U.S. for at least 31 days during the current year and your weighted three-year day count reaches 183. Each day this year counts in full, each day in the prior year counts as one-third, and each day two years back counts as one-sixth.2Internal Revenue Service. Substantial Presence Test
Who Can Skip Days or Escape the Test
The IRS lets certain people ignore their U.S. days entirely. These “exempt individuals” (the term refers to the day count, not to tax liability) include foreign government employees on A or G visas other than A-3 and G-5; teachers and trainees on J or Q visas who comply with visa requirements; students on F, J, M, or Q visas who comply with visa requirements; and professional athletes temporarily in the U.S. for a charitable sports event.3Internal Revenue Service. Substantial Presence Test – Section: Exempt Individual
The student exemption has a five-year cap. After you have been an exempt individual for any part of more than five calendar years, your days generally start counting.4Internal Revenue Service. Exempt Individual – Who Is a Student Teachers and researchers on J visas have a separate, shorter window. Anyone claiming exempt-individual status or excluding days for a medical condition must attach Form 8843 to their return.5Internal Revenue Service. About Form 8843, Statement for Exempt Individuals and Individuals With a Medical Condition The medical exclusion applies only when the condition arose while you were already in the U.S. and you genuinely intended to leave; it does not cover people who entered for treatment or who lingered past recovery.6Internal Revenue Service. Form 8843 – Statement for Exempt Individuals and Individuals With a Medical Condition
Even if your day count clears 183, the Closer Connection Exception can keep you classified as a non-resident alien. All four conditions must hold: fewer than 183 days in the U.S. during the current year, a tax home maintained in a foreign country for the entire year, a closer connection to that country than to the U.S., and no application or steps toward lawful permanent resident status. Claiming the exception requires Form 8840, and missing the deadline can disqualify you unless you show through clear and convincing evidence that you took reasonable steps to comply.7Internal Revenue Service. Closer Connection Exception to the Substantial Presence Test
How U.S. Income Is Taxed
Non-resident aliens pay federal income tax only on U.S.-source income. Foreign income with no U.S. connection is generally outside the U.S. tax net, which is the main practical benefit of the status.8Internal Revenue Service. Nonresident Aliens – Section: Tax Treatment of Nonresident Alien
Effectively Connected Income
Income tied to a U.S. trade or business — wages, salaries, self-employment earnings, and business profits from U.S. operations — is taxed at the same graduated rates that apply to citizens, and you can claim deductions against it.
Passive U.S.-Source Income
Passive income from U.S. sources not connected to a U.S. business — interest, dividends, rents, royalties, and similar payments — is taxed at a flat 30% on the gross amount with no deductions. The payer usually withholds the tax at the source. A tax treaty between the U.S. and your home country may reduce or eliminate that rate.
Bank Deposit Interest
Interest on deposits at U.S. banks, savings institutions, and certain insurance companies is generally not taxable to a non-resident alien, provided the interest is not connected to a U.S. business.9Office of the Law Revision Counsel. 26 U.S. Code 871 – Tax on Nonresident Alien Individuals This carveout matters if you keep savings in a U.S. account while living abroad.
No Standard Deduction
Non-resident aliens filing Form 1040-NR cannot take the standard deduction and are limited to itemized deductions. The one exception: students and business apprentices from India, under the U.S.-India income tax treaty.10Internal Revenue Service. Nonresident — Figuring Your Tax
Tax Treaty Benefits
The United States has income tax treaties with dozens of countries. To claim treaty benefits on income subject to withholding, provide a Form W-8BEN to the payer. If you claim treaty benefits on your return to reduce your U.S. tax, attach Form 8833.11Internal Revenue Service. Claiming Tax Treaty Benefits Some states do not honor federal treaties for state income tax purposes.
Social Security and Medicare Refunds for Students
Non-resident alien students on F-1, J-1, or M-1 visas who have been in the U.S. for fewer than five calendar years are generally exempt from Social Security and Medicare taxes on wages from qualifying employment. Qualifying work includes on-campus jobs (up to 20 hours per week during the school year, 40 in summer) and off-campus employment authorized by USCIS, such as practical training.12Internal Revenue Service. Foreign Student Liability for Social Security and Medicare Taxes
The exemption does not cover F-2, J-2, or M-2 dependents, and it ends when you switch to a non-exempt immigration status or become a resident alien. Employers sometimes withhold these taxes in error. Ask your employer for a refund first. If the employer does not fully reimburse you, file Form 843 with the IRS along with copies of your W-2 and visa documents.13Internal Revenue Service. Social Security Tax/Medicare Tax and Self-Employment
Filing Form 1040-NR
Non-resident aliens report U.S.-source income on Form 1040-NR. You must file even if all your income is exempt under a treaty or no tax is owed, and you should file to claim a refund of over-withheld tax.14Internal Revenue Service. Instructions for Form 1040-NR
The deadline depends on your income type. If you had U.S. wages subject to withholding, the return is due April 15. If you had no U.S. wages, it is due the 15th day of the sixth month after your tax year ends, which is June 15 for calendar-year filers.14Internal Revenue Service. Instructions for Form 1040-NR
If you are not eligible for a Social Security number, you will need an Individual Taxpayer Identification Number to file. Non-resident aliens with a U.S. work visa generally qualify for an SSN and do not need an ITIN.15Internal Revenue Service. Individual Taxpayer Identification Number (ITIN)
Departure Permits
Non-resident aliens outside a specific exempt category must obtain a departure or sailing permit before leaving the United States. File Form 2063 if you had no taxable income, or Form 1040-C if you did, at a local IRS Taxpayer Assistance Center before departure. Students and trainees on F, J, M, or Q visas with no U.S.-source income beyond limited exceptions, foreign government employees whose compensation is exempt, and Canadian or Mexican residents who commute to the U.S. for work are among those exempt from the requirement.16Internal Revenue Service. Topic No. 858, Alien Tax Clearance
Dual-Status Years When You Arrive or Leave
The year you arrive in or depart from the United States often splits: part of the year non-resident, part resident. The IRS calls this a dual-status year.17Internal Revenue Service. Publication 519, U.S. Tax Guide for Aliens During the resident portion you are taxed on worldwide income; during the non-resident portion, only on U.S.-source income and foreign income connected to a U.S. business.
Dual-status taxpayers cannot claim the standard deduction, cannot file as head of household, and cannot file a joint return. Allowable deductions must be itemized.18Internal Revenue Service. Taxation of Dual-Status Individuals A married couple can sidestep dual-status treatment by electing to treat the non-resident spouse as a resident for the full year, but that election means worldwide income becomes taxable.
Estate and Gift Tax
This is where non-resident alien status carries the largest hidden cost. A U.S. citizen or resident can pass up to $15,000,000 in assets free of federal estate tax in 2026.19Internal Revenue Service. What’s New — Estate and Gift Tax A non-resident alien who is not a U.S. citizen gets a $60,000 exemption, roughly 0.4% of that amount.20Internal Revenue Service. Frequently Asked Questions on Estate Taxes for Nonresidents Not Citizens of the United States U.S.-situated assets above $60,000 are taxed at rates up to 40%.
The estate tax reaches only property considered situated in the United States: U.S. real estate, tangible personal property physically located here, stock in U.S. corporations, and certain U.S. debt obligations.21Office of the Law Revision Counsel. 26 U.S. Code 2104 – Property Within the United States A non-resident alien holding a $500,000 U.S. condo and $200,000 in U.S. stock could leave a taxable estate of $640,000 after the exemption. Some estate tax treaties provide a proportional credit based on the full U.S. citizen exclusion, so check whether your home country has a treaty in place.22Office of the Law Revision Counsel. 26 USC 2102 – Credits Against Tax
Gift Tax
Non-resident aliens who gift property located in the United States can give up to $19,000 per recipient per year in 2026 without triggering gift tax, the same annual exclusion citizens receive. Gifts above that amount to any single person other than a spouse require Form 709-NA.23Internal Revenue Service. Frequently Asked Questions on Gift Taxes for Nonresidents Not Citizens of the United States
Gifts to a non-citizen spouse get a higher annual exclusion of $194,000 for 2026 rather than the unlimited marital deduction available between two U.S. citizens. Exceeding that threshold also triggers a Form 709-NA filing requirement.
Selling U.S. Real Estate
If a non-resident alien sells real estate or another U.S. real property interest, the buyer must generally withhold 15% of the sale price under the Foreign Investment in Real Property Tax Act. The withholding is a prepayment, not the final tax. You reconcile it on Form 1040-NR for the year of the sale, calculating the actual tax on the gain and either owing more or claiming a refund of the excess.24Internal Revenue Service. FIRPTA Withholding