Your U.S. tax bill for 2026 starts with one question: are you a resident alien or a nonresident alien for federal tax purposes. That status decides whether you report worldwide income on Form 1040 or only U.S.-sourced income on Form 1040-NR, and it often changes after a move.
Resident aliens are treated like U.S. citizens for tax, so the IRS taxes worldwide income from U.S. and foreign sources. Nonresident aliens pay U.S. tax only on U.S.-sourced income, with separate rules for business income and for passive payments like dividends.
Quick classification for 2026
For 2026, you are a resident alien if you meet either the Green Card Test or the Substantial Presence Test. Start with the Green Card Test because it’s simple: if you held lawful permanent resident status at any time in 2026, you meet it.
If you didn’t have a green card, use the Substantial Presence Test. You need:
- 31 days of physical presence in the United States during 2026, and
- 183 days using the three‑year formula.
Count days this way:
– All days present in 2026 (count full).
– 1/3 of days in 2025.
– 1/6 of days in 2024.
Practical timeline: track from travel days to filing day
Think of the process as a yearlong record, followed by a short filing sprint. Most people do best when they track days and income as they go, instead of rebuilding everything when April arrives.
- January–December 2026: track presence and status.
Save passports, I‑94 travel history, and any green card notices. Mark every day you were physically in the United States. -
During 2026: label each type of income.
Separate wages, self‑employment, scholarships, interest, dividends, rental income, and foreign income. Resident and nonresident rules tax these differently. -
January–March 2027: run the tests.
Apply the Green Card Test first, then the day‑count formula. Note any student or treaty exception you plan to claim. -
March–April 2027: choose the right return.
Resident aliens file Form 1040 or Form 1040‑SR, while nonresident aliens file Form 1040‑NR and often need withholding documents from payers. -
By the deadline: file, pay, and keep proof.
Keep copies of forms, treaty statements, and day counts for at least several years in case the IRS asks.
What the IRS taxes once your status is set
Resident aliens report the same broad income categories as citizens, including:
- Foreign salary
- Overseas business profit
- Interest from foreign banks
They can also claim regular deductions and credits, including a foreign tax credit when they paid income tax to another country.
Nonresident aliens split income into two buckets:
- Income effectively connected with a U.S. trade or business — taxed at graduated rates.
- Fixed, determinable, annual, or periodical income (FDAP) — taxed at a flat 30% rate unless a tax treaty reduces it.
Filing forms, deadlines, and authoritative guidance
Once you know your category, match it to the right paperwork.
- Resident aliens: file Form 1040 or Form 1040‑SR.
- Nonresident aliens: generally file Form 1040‑NR.
- Some with no income still submit Form 8843 to claim an exemption from counting days.
Deadlines:
– Resident alien returns for a calendar year are due April 15.
– Nonresident aliens with U.S. wages: file by April 15.
– Nonresident aliens with no wages: file by June 15.
The IRS definitions and rules are in Publication 519. VisaVerge.com reports many first‑time filers are tripped up not by rates, but by day counts and missing treaty paperwork.
Important: Deadlines and exact filing requirements matter. Missing treaty statements or miscounting days often triggers IRS inquiries.
Exceptions that can keep you a nonresident after the day count
Passing the Substantial Presence Test does not always end the analysis. You may remain a nonresident if you meet all three of these conditions:
- Present in the U.S. for fewer than 183 days in 2026,
- Maintained a tax home abroad, and
- Had a closer connection to another country.
Special rules for visa types:
– Students, teachers, and trainees often have carve‑outs.
– Many F or J visa holders are treated as nonresident aliens for their first 5 calendar years.
Tax treaties:
– Some treaties reduce the FDAP tax rate.
– Some treaties include tie‑breaker rules that can treat you as a resident of the other country.
Claiming a treaty position usually requires an extra statement and careful records.
Dual‑status years: extra paperwork and few deductions
A dual‑status alien is resident for part of the year and nonresident for the rest (commonly the year you arrive or depart). You pay U.S. tax on worldwide income only during the resident part.
Filing for dual-status:
– File Form 1040‑NR and write “Dual‑Status” across the top.
– Attach a Form 1040 statement for the resident period.
– Dual‑status filers generally cannot take the standard deduction or file a joint return.
Elections:
– A First‑Year Election or a spousal election can treat you as a resident for more of the year. This can help when you need credits tied to resident status.
What records to keep and pre‑filing checklist
Good records lower stress and reduce mistakes. Keep:
– A simple day log (dates present in the U.S.).
– Copies of entry stamps and airline itineraries.
– Year‑end wage and withholding forms, plus statements for dividends, interest, and foreign accounts.
– Any treaty statements and visa documentation.
Before you file, confirm these four items:
1. Your Green Card Test result — did you hold permanent residence even briefly?
2. Your Substantial Presence math, including any exempt days.
3. Your income sourcing, to ensure foreign income isn’t missed if you’re a resident.
4. Your deadline, so payment arrives by April 15 or June 15 as required.
After filing: what to expect if status is questioned
The IRS processing is similar to that for citizens, but status errors draw letters quickly. If you switch between resident and nonresident status, expect questions about day counts and treaty claims.
When responding to IRS inquiries:
– Answer in writing.
– Attach copies of supporting documents (day logs, treaties, withholding records).
– Stay consistent across years, especially when employers issued withholding at the wrong rate or when you changed visas.
Key takeaway: Accurate day counts, clear records, and timely treaty statements are the most common ways to avoid problems.
This guide explains how to determine U.S. tax residency for 2026 using the Green Card and Substantial Presence tests. It outlines the reporting differences between resident aliens, who owe tax on worldwide income, and nonresident aliens, who focus on U.S. sources. Key topics include filing deadlines, dual-status year complexities, and the importance of maintaining travel logs and treaty documentation to avoid IRS processing errors.
