What is the Substantial Presence Test?
The Substantial Presence Test is the IRS rule that decides whether a non-citizen, non-Green
Card holder becomes a US tax resident based on physical days of presence. It applies primarily
to visa holders — H1B, L1, F1, J1, TN, B1/B2 in some cases.
What is the SPT formula?
You meet SPT for the current year if BOTH conditions are true:
Condition 1: You were physically present in the US for at least 31 days during the current year.
Condition 2: Your weighted total across three years is 183+ days: all days in the current year
×1, plus days in the prior year ×1/3, plus days in the year before that ×1/6.
For tax year 2025: Days in 2025 + (Days in 2024 ÷ 3) + (Days in 2023 ÷ 6) ≥ 183 .
Worked example — H1B holder
Priya moved to the US on H1B in August 2023, stayed 365 days in 2024, and 200 days in 2025.
SPT for 2025: - 2025: 200 days × 1 = 200 - 2024: 365 days ÷ 3 = 121.67 - 2023: 153 days ÷ 6 =
25.5 - Total: 347.17 days. Far above 183 — she meets SPT for 2025.
Are there exemptions from counting days?
Yes. Several categories of "exempt individuals" do NOT count US days: - F1 / J1 students: First
5 calendar years exempt - J1 teachers and trainees: First 2 calendar years exempt -
Government officials of foreign countries on A or G visa - Professional athletes in the US
for charitable events - Medical condition preventing departure
H1B, L1, TN, O1 holders have NO exemption — every day counts from day one.
Does the day I arrive and depart count?
Both arrival and departure days count as full US days. The exception is the "transit exception" —
if you're in transit less than 24 hours, that day doesn't count.
What if I just barely don't meet SPT?
If you're in the US 31+ days but the weighted total is under 183, you're a US non-resident for tax
purposes. You file Form 1040-NR (taxed only on US-source income, no worldwide income
reporting).
Can I be a US resident even though I don't meet SPT
Two options: - First-Year Choice election (Section 7701(b)(4)) — for those who'll meet SPT
next year - Section 6013(g) / 6013(h) election — applies when married to a US citizen or
resident Both useful in specific cases — usually when you want the standard deduction and refundable
credits.
What if I meet SPT but want to be a non-resident?
Use Closer Connection Exception (Form 8840). Requires < 183 days in the current year, tax
home in a foreign country, and a closer connection to that country.
OR use the DTAA tie-breaker rule (Form 8833). India-US treaty Article 4 provides a tie-breaker
rules: permanent home → centre of vital interests → habitual abode → nationality.
When does SPT residency start during the year?
Your "residency start date" is the first day you were present in the US during the year you
became a resident. Days before = non-resident. Days from that day = resident. This creates a
dual-status year unless you elect otherwise.
How does this affect my Indian tax position?
You can be a tax resident of both India and the US in the same year. The DTAA tie-breaker
decides which country is the primary residence for treaty purposes. Form 67 (India) and Form
1116 (US) handle the Foreign Tax Credit on both sides.
Explore our complete US Tax Return Guide to understand refunds, filing rules, and IRS procedures for NRIs.