Intuit Academy Tax Practice Exam

Which test must a taxpayer meet to be treated as a resident alien if they are not a U.S. citizen?

1. Substantial Presence Test

2. Income Threshold Test

3. Green Card Test

4. Residency Duration Test

The correct answer is: Substantial Presence Test

To be classified as a resident alien for tax purposes, a taxpayer must meet the Substantial Presence Test. This test evaluates the number of days the individual has spent in the United States over a three-year period, including the current tax year and the two prior years. Specifically, it requires that the individual be present in the U.S. for at least 31 days during the current year and that the sum of the days present in the current year plus one-third of the days they were present in the previous year and one-sixth of the days from two years prior equals 183 days or more. This test is important because it establishes a criterion based on actual physical presence in the U.S., which is fundamental to determining tax obligations. It serves as one of the primary methods by which non-citizens can be considered resident aliens, having access to tax benefits associated with residency akin to those enjoyed by U.S. citizens. The other options do not apply in this context: the Income Threshold Test relates to income levels rather than residency; the Green Card Test considers lawful permanent resident status but is a separate criterion from physical presence; and the Residency Duration Test is not a recognized measure under U.S. tax law for determining residency status. Thus,