Question

Natsumi is a citizen and resident of Japan. She has a full-time job in Japan and has lived there with her family for the past 20 years. In 2017, Natsumi came to the United States on business and stayed for 240 days. She came to the United States again on business in 2018 and stayed for 120 days. In 2019 she came back to the United States on business and stayed for 120 days. Does Natsumi meet the U.S. statutory definition of a resident alien in 2019 under the substantial presence test?

Answer 1

A person will be considered as resident of united states for tax purpose if he meet the substantial presence test of calendar year. To fulfil the test person must be physically present in U.S.

1. 31 days in current year and
2. 183 days during 3 years period including current year and 2 years immediately preceeding the current year Calculation of days

• All days present in current year
• 1/3rd days of person present in first year before current year
• 1/6th of days of person present in second year before current year.

Natsumi is resident and citizen of Japan. She stayed in US for business and stayed in US for 240 days in 2017, 120 days in 2018 and 120 days in 2019.

Determination of residential status of Natsumi in 2019 in US...

1. Present for 120 days in 2019
2. Total should be 183 days or more of following

• All days of 2019 is = 120 days
• 1/3rd of 120 days of 2018 =40days
• 1/6th of 240 days in 2017 =40 days. TOTAl =200 Days

1.Natsumi is present for 120 days in current year i.e.2019 which is more than 31days. and

2. Total 200 days present during 3 years period which is more than 183 days as per second condition mentioned above.

Therefore Natsumi is meet the U.S. statutory definition of resident alien under substantial presence test.