La Quinta, CA
(760) 895-3516

Saturday, April 11, 2015

Substantial Presence Test Calculator

Substantial Presence Test For Canadians in the U.S.


For Canadians visiting and staying in the United States for part of the year, it is important to understand rules and regulations that impact how/if you are taxed in the United States. The IRS uses what is called a Substantial Presence Test to determine if a Canadian staying in the U.S. is a "resident" or not for taxation purposes. **This test is for Canadians who do not work in the U.S. and do not have a greencard.

Here are the formulas for the Substantial Presence Test as of 2014

Use the Substantial Presence Test Calculator

Number of days in U.S. in tax year: **MUST BE MORE THAN 31**
Number of days in U.S. inprior tax year:
Number of days in U.S. two tax years prior:


Days (183 OR MORE = YOU ARE CONSIDERED A U.S. RESIDENT) :

How the Substantial Presence Test formula works:

1. HAVE YOU BEEN IN THE U.S. FOR MORE THAN 31 DAYS IN THE TAX YEAR? IF NO, YOU DO NOT MEET THE SUBSTANTIAL PRESENCE TEST AND ARE NOT CONSIDERED A "RESIDENT" FOR TAX PURPOSES.
2. If you've been in the U.S. for more than 31 days in the tax year, you will use this formula to determine whether you are considered a resident for tax purposes:
(Number of days present in tax year)
+ (1/3 X number of days present in prior tax year)
+ (1/6 X number of present days in two years prior to tax year)
________ : TOTAL

ATTENTION CANADIANS: IF YOU ARE ABOVE 183 DAYS....

If you are above the 183 days, you are considered a resident of the United States regardless of your visa status. I.E you must file a tax return to the IRS unless you file form 8840.
Borders Bookkeeping will be happy to assist you in filing form 8840 to the IRS on your behalf. Please contact:
(760) 895-3516
Borders Bookkeeping