Can someone break down how the substantial presence test works for US tax status?

Thanks for the explanation! So if I came in May this year and stayed until December, that's about 240 days for the current year. I wasn't here at all in the two prior years. So would that mean I automatically pass the test based on the 183-day calculation? Also, does my visa type matter? I'm here on an E-3 visa if that makes any difference.

Yes, with 240 days in the current year alone, you would pass the substantial presence test since you've exceeded the 183-day threshold without even needing to count any days from previous years. Your visa type can matter in some cases. While most visa holders are subject to the substantial presence test, certain visa categories like F, J, M, or Q visas have special exemptions. However, E-3 visa holders (which is specifically for Australians) don't have special exemptions, so the standard substantial presence test rules apply to you. This means you'll likely be filing as a resident alien for this tax year.

That sounds helpful! Did it give any guidance about exemptions? I'm a teacher on a J visa and I heard we have different rules for the substantial presence test. I've been here for 15 months now.

I'm kinda skeptical about these online tools. How do you know it's calculating everything correctly? Did you double-check its results with a tax professional? I've heard horror stories about people getting bad advice online and ending up with huge tax problems.

Yes! The tool specifically flagged your situation - J visa holders like teachers and students often have special "exempt individual" status for 2-5 years where those days don't count toward the substantial presence test. It explains all those exemptions and asks about your visa type upfront. I was worried about accuracy too, so I actually compared the results with what my company's tax advisor calculated manually, and they matched exactly. The documentation it provides shows all the calculations and relevant tax code sections, which gave me peace of mind. It's actually built by tax professionals who specialize in international taxation.

How does Claimyr actually work though? I've tried calling the IRS multiple times and just got disconnected. Do they have some special access or something? I'm confused.

Yeah right, nobody gets through to the IRS these days. Their phone lines are practically useless. I've tried calling dozens of times over several months with tax questions and either wait for 3+ hours or get disconnected. I'll believe this works when I see it.

They use a system that continuously redials and navigates the IRS phone tree until it gets through to an agent. They don't have special access - they're just better at dealing with the frustrating phone system than individuals trying once or twice. The process is pretty straightforward - you register your question, they call the appropriate IRS department and wait on hold (sometimes for hours), then when an agent picks up, you get a call to connect with them. I was skeptical too until I tried it. I had been trying for weeks to get specific guidance on my situation with multiple border crossings and how they affected my substantial presence calculation.

That's interesting! How do you prove you have a "closer connection" to another country? I still own a house in Australia that I'm renting out, and my family is still there. Would that be enough?

Yes, having a house you own in Australia and family there would be strong factors! The IRS looks at several things to determine closer connection: The location of your permanent home, family, personal belongings, and social/political/cultural organizations you're part of all matter. They also consider where you hold your driver's license, where you're registered to vote, where you conduct business, and which country's forms you fill out for official documents. Basically, they want to see where your life is centered. Document everything - your Australian property records, family ties, bank accounts there, etc. The more ties you can show to Australia, the stronger your case for the closer connection exception.

Yes, the IRS had special COVID relief for the substantial presence test! If you were temporarily in the US due to COVID travel restrictions, you could exclude up to 60 consecutive days from your substantial presence calculation for certain time periods. The relief applied to stays between Feb 1 and April 1, 2020 with various extensions. You'd need to document that you intended to leave but couldn't due to travel restrictions. Check out Revenue Procedure 2020-20 for details.

This is such great advice about keeping detailed records! I wish someone had told me this earlier. I've been trying to reconstruct my travel history from memory and scattered receipts, which is proving to be a nightmare. @Kai Santiago, your point about worldwide income reporting is really eye-opening. I hadn't fully grasped that implication yet. I do have some rental income from my property in Australia and interest from accounts there. Does this mean I'll need to convert everything to USD for reporting purposes? Also, are there any foreign tax credits I can claim to avoid double taxation on that Australian income? The documentation point is so important - I'm definitely going to start a travel log going forward with entry/exit dates and keep all my boarding passes and hotel receipts organized.