The Substantial Presence Test (SPT) is used to determine your residency status for tax purposes. Sprintax Calculus applies this test to assess whether you qualify as a resident or nonresident for US tax purposes. It is essential that you accurately answer all the questions on Step 1 Residency so that Calculus software would be able to correctly determine your residency for tax purposes.
You will be considered a United States resident for tax purposes if you meet the Substantial Presence Test for the calendar year. To qualify, you must be physically present in the U.S. for at least:
- 31 days during the current year, and
- 183 days during the 3-year period, which includes the current year and the two years immediately preceding it. The 183 days are calculated by counting:
- All the days you were present in the current year,
- 1/3 of the days you were present in the first year before the current year, and
- 1/6 of the days you were present in the second year before the current year.
If you are on an F, J, M, or Q Visa, you may be exempt from the Substantial Presence Test under certain conditions:
- F-1, J-1 (student), and M Visas are exempt from the Substantial Presence Test for five calendar years over a lifetime.
- Holders of other J visas and the Q Visa are exempt for two years out of every six proceeding years.