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What is the Substantial Presence Test (SPT)?

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What is the Substantial Presence Test (SPT)?

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It is an Internal Revenue Service tax residency test for nonresident aliens. The SPT is used to determine U.S tax residency status. The test counts how many days you have been present in the United States. If you have been present in the United States for at least 183 days during a three-year period that includes the current year, you are no longer a nonresident alien for tax purposes. For purposes of this test, each day of your presence in the current year is counted as a full day; each day of presence in the first preceding year is counted as one-third of a day; and each day of presence in the second preceding year is counted as one-sixth of a day. Substantial Presence Test: (1) All the days present in the current year, and (2) 1/3 of the days present in the first preceding year, and (3) 1/6 of the days present in the second preceding year. If you are not physically present for more than 30 days during the current year, you will fail the test, even if the three-year total is 183 or m

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The Substantial Presence Test is a tax residency test for non resident aliens developed by the Internal Revenue Service. The test counts how many days you have been present in the United States during the current and prior two years. You must have been present less than 183 days during the three-year period to be qualified as a nonresident alien for tax purposes. Once you pass the 183 days, you become a resident alien for tax purposes. You must count all days present in the current year; 1/3 of the days present in the first prior year; and 1/6 of the days present in the second prior year. If you are not physically present for more than 30 days during the current year, you will fail the test, even though the three-year total is 183 or more days.

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