Help filing US Taxes - Confused about Resident Status & Substantial Presence Test

Hi there! First time dealing with US taxes and I'm totally confused about my resident status. I relocated to the US on February 14th, 2024 and stayed in one state the entire year. According to my USCIS paperwork, I'm classified as a non-resident alien, but for IRS purposes, I might qualify as a resident alien based on the Substantial Presence Test. I tried following the IRS guidelines on the Substantial Presence Test and by my calculations, I passed the SPT around March 5th, 2025 based on the day-counting formula. But then I came across something called the "closer connection exception to the Substantial Presence Test" which lists some conditions that might exempt me from being considered a resident alien for tax purposes. For context - before moving to America, I was paying taxes in Brazil (my home country) for January 2024 and filed my tax returns there for the 2023-24 fiscal year. I haven't applied for a Green Card. I was physically present in the US for about 320 days in 2024. I have two main questions: 1. For the Substantial Presence Test, do we only count the 31 days in the current year (2025) or do we count days up until we actually file taxes? 2. Do I qualify for the SPT exemption? And do I need to meet ALL the conditions listed or just some of them (AND or OR logic)? The IRS language is so confusing! Any help would be greatly appreciated! I'm stressing about getting this right.

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23 comments

Angel Campbell

•8M

The Substantial Presence Test can definitely be confusing for first-time filers! Let me try to clarify: For your first question - the SPT looks at your physical presence over a 3-year period. You need to be physically present in the US for at least 31 days in the current year AND 183 days during the 3-year period that includes the current year and the 2 years before that (with a weighted formula). When calculating, you only count days up until December 31st of the tax year you're filing for, not until the day you file. Regarding your second question about the closer connection exception - you must meet ALL of the following conditions to qualify: - You must be present in the US for fewer than 183 days in the current year - You maintain a tax home in a foreign country - You have a closer connection to that foreign country Based on what you've shared (320 days in the US during 2024), you would NOT qualify for the closer connection exception since you were present for more than 183 days. For your situation, it sounds like you'd be considered a resident alien for tax purposes under the Substantial Presence Test for 2024, despite your USCIS status saying non-resident alien.

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Angel Campbell

•8M

Yes, you might qualify for the closer connection exception if you were only present for 170 days, which is less than the 183-day threshold. You would need to demonstrate that you maintained a tax home in your foreign country and have a closer connection to that country than to the US. And you're absolutely right about Form 8840 - you would need to file the "Closer Connection Exception Statement for Aliens" (Form 8840) along with your tax return to claim this exception. Make sure to file it by the due date for your 1040-NR.

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TommyKapitz

•8M

Thank you so much for the clear explanation! So if I understand correctly, since I was in the US for 320 days in 2024, I definitely don't qualify for the closer connection exception. For the Substantial Presence Test calculation - so we only count days up to December 31st, 2024 for filing 2024 taxes? I was confused because some sources mentioned that you need 31 days in the "current year" and I wasn't sure if that meant 2025 (the year I'm filing in) or 2024 (the tax year).

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Angel Campbell

•8M

You've got it right! For filing your 2024 taxes, the "current year" refers to 2024, not 2025. The SPT calculation for your 2024 tax return only counts days up to December 31, 2024. The "31 days in the current year" requirement means you need to have been physically present in the US for at least 31 days during 2024, which you clearly were with 320 days. Then there's the 183-day three-year calculation, which you'd also easily meet given your 2024 presence. So yes, for tax purposes, you would be considered a resident alien for 2024 and would file Form 1040 (not 1040-NR), despite your USCIS status.

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Harold Oh

•8M

After struggling with similar residency status issues last year, I discovered taxr.ai (https://taxr.ai) which really helped me figure out my situation. I was confused about the Substantial Presence Test too and wasn't sure if I qualified as a resident or non-resident for tax purposes. The tool analyzed my travel dates and visa status and clearly explained which forms I needed to file. It also pointed out that I needed to file Form 8843 even though I didn't owe any taxes. Without that guidance, I would've completely missed that requirement. What I found most helpful was that it explained the dual-status alien concept, which applied to me since I became a tax resident partway through the year. Saved me from a potential audit nightmare!

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Harold Oh

•8M

The system handles multiple entries and exits really well. You just input all your travel dates, and it calculates your US presence days automatically. It even accounts for special rules like the "exempt individual" days that don't count toward the SPT if you were on certain visa types. For complex situations involving remote work, it can definitely help identify issues, but in some cases, professional advice is still valuable. The difference is you'll go into that consultation much more informed. Many users actually use the tool first to understand their situation, then bring specific questions to a tax professional rather than paying for hours of basic education.

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Summer Green

•8M

Just wanted to follow up - I tried taxr.ai after seeing the recommendation here. It was seriously helpful for my complicated tax residency situation! I was going back and forth between countries and couldn't figure out if I qualified as a resident or non-resident. The tool walked me through all my travel dates and immediately showed me that I was actually a dual-status alien (part-year resident). It explained exactly which forms I needed and how to handle income from different periods of the year. The explanations about foreign tax credits were particularly helpful since I paid taxes in two countries. Saved me a ton of time trying to decipher the IRS publications and probably saved me from making a major filing mistake!

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Gael Robinson

•8M

If you're still confused after sorting through the tax residency rules, I highly recommend using Claimyr (https://claimyr.com) to get through to the IRS directly. I was in a similar situation last year - completely confused about Substantial Presence Test and whether I needed to file as resident or non-resident. After spending weeks trying to figure it out myself and not getting anywhere with the IRS website, I used Claimyr to bypass the ridiculous hold times (I tried calling directly before and gave up after 2+ hours on hold). Got connected to an IRS agent in about 20 minutes who walked me through my specific situation. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent confirmed I was considered a resident alien for tax purposes despite my visa status, and explained exactly which forms I needed to file. Huge relief to get an official answer directly from the IRS!

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Gael Robinson

•8M

It works by using callback technology - basically, they have an automated system that waits on hold with the IRS for you. When they reach an agent, they call you and connect you directly to that agent. You don't skip any lines, but you don't have to personally wait on hold for hours. I was skeptical too before trying it. What convinced me was that you only pay if you actually get connected to an IRS agent. I figured I had nothing to lose since traditional methods weren't working. The longest part was actually verifying my identity with the IRS once I got through, not the wait time itself.

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Darcy Moore

•8M

Ok I need to apologize and eat my words. After posting my skeptical comment, I was still desperate to talk to the IRS about my resident status confusion so I decided to try Claimyr. I got connected to an actual IRS agent in about 25 minutes. The agent confirmed I was indeed a dual-status alien for the year I arrived in the US and explained exactly how to file my taxes properly. They even sent me to a specialized international tax department when my questions got too technical for the first agent. Super relieved to have official answers directly from the IRS instead of conflicting advice from random websites. This was way more efficient than my previous attempts to call them directly (where I never got through at all).

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Dana Doyle

•8M

One thing that hasn't been mentioned yet - if you determine you're a resident alien for tax purposes, make sure you look into whether you need to file FBAR (Foreign Bank Account Report) if you have financial accounts in Brazil. As a tax resident, you need to report foreign accounts if the aggregate value exceeds $10,000 at any point during the year. This is separate from your tax return and has different filing deadlines. I learned this the hard way last year - thought I was done after filing my taxes but then realized I had additional FBAR requirements. The penalties for not filing can be severe, even if it's an honest mistake.

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Dana Doyle

•8M

The FBAR (officially called FinCEN Form 114) is filed separately from your tax return. It's filed electronically through the Financial Crimes Enforcement Network's BSA E-Filing System, not through the IRS. The standard deadline is April 15th, but there's an automatic extension to October 15th every year - you don't need to request this extension. The form asks for information about all your foreign financial accounts, including maximum values during the year, account numbers, and financial institution information. Just to be clear - you need to report these accounts if the COMBINED value of ALL foreign accounts exceeded $10,000 at any point during the year, not each individual account.

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Liam Duke

•8M

One more point that could apply to your situation - if you're considered a resident alien for tax purposes but a nonresident for USCIS/immigration purposes, make sure to check if there's a tax treaty between the US and Brazil. Many countries have tax treaties with the US that can reduce or eliminate double taxation on certain types of income. As a first-year resident, you might qualify for special provisions under the treaty. For example, I'm from India, and under the US-India tax treaty, there are special provisions for students, teachers, and researchers that can exempt certain income from US taxation for a limited time.

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Zainab Ahmed

•3M

There is indeed a tax treaty between the US and Brazil that could potentially help with your situation! The US-Brazil tax treaty includes provisions that can help prevent double taxation and may provide certain benefits for new residents. To claim treaty benefits, you'll typically need to file Form 8833 (Treaty-Based Return Position Disclosure) if you're taking a position that the treaty overrides or modifies an Internal Revenue Code provision. However, not all treaty benefits require this form - some can be claimed directly on your tax return. Since you were paying taxes in Brazil for part of 2024, you might also be eligible for the Foreign Tax Credit (Form 1116) to offset taxes you paid to Brazil against your US tax liability. This can help reduce the double taxation burden even if specific treaty provisions don't apply. Given the complexity of your situation - being a dual-status alien with foreign income and potential treaty benefits - I'd strongly recommend consulting with a tax professional who specializes in international taxation. They can help you navigate both the residency determination and any available treaty benefits to ensure you're not overpaying taxes to either country.

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Javier Morales

•3M

This is incredibly helpful information about the US-Brazil tax treaty! I had no idea there were specific provisions that could help with my situation. Just to clarify - since I was paying taxes in Brazil for January 2024 before moving to the US, would I be able to claim the Foreign Tax Credit for that period? And would this be in addition to any treaty benefits I might qualify for, or do I have to choose one or the other? Also, you mentioned Form 8833 - how do I know if I need to file this form? Are there specific circumstances that trigger the requirement, or is it more of a "better safe than sorry" situation? I'm definitely leaning towards getting professional help at this point given all these additional considerations I wasn't even aware of!

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Jamal Carter

•3M

Great questions! Yes, you can typically claim the Foreign Tax Credit for taxes you paid to Brazil in January 2024, even though you later became a US tax resident. The Foreign Tax Credit and treaty benefits often work together rather than being mutually exclusive - the treaty might reduce your US tax liability on certain types of income, while the Foreign Tax Credit offsets any remaining double taxation. For Form 8833, you generally need to file it when you're taking a treaty position that reduces your US tax below what it would be under US law alone. Common triggers include claiming treaty exemptions for certain income types, reducing withholding rates, or claiming tie-breaker rules for dual residency. The instructions for Form 8833 have a specific list of when it's required versus when it's optional. Given that you're dealing with dual-status alien issues, Brazilian source income, potential treaty benefits, FBAR requirements, and Foreign Tax Credit calculations all at once - professional help is definitely the smart move here! An international tax specialist can ensure you're taking advantage of all available benefits while staying compliant with both countries' requirements.

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