When you move to the United States, your tax position is decided by residency rules that are separate from your visa. Here is how US tax residency works, what gets taxed, and the official IRS sources for every rule.
Unless you hold a green card, your residency usually turns on how many days you are physically present in the US. You meet the substantial presence test, and become a tax resident, when both conditions below are true.
This is general information, not tax advice. Exemptions apply to some visa holders (for example students and teachers). Confirm your position against the official IRS sources below or a qualified US tax adviser.
US tax residents are taxed on worldwide income and file Form 1040. Non-resident aliens are taxed only on US-source income and file Form 1040-NR.
You are a tax resident if you hold a green card (the green card test) or meet the substantial presence test based on days physically present.
In your year of arrival you are often dual-status: a non-resident for part of the year and a resident for the rest, with special filing rules.
The US has treaties with many countries that can reduce or remove double taxation. A foreign tax credit may also offset tax paid abroad.
Residents generally must file an FBAR if foreign accounts exceed $10,000 in aggregate, and Form 8938 for specified foreign assets above set thresholds.
State income tax is charged on top of federal tax and varies widely. A few states (such as Florida and Texas) levy no state income tax.
Every rule on this page is drawn from the IRS. Verify current thresholds and filing requirements on the primary pages before you act.
As soon as you either receive a green card (the green card test) or meet the substantial presence test for the calendar year. Green card holders are taxed as residents even if they spend little time in the US.
You meet it if you are present at least 31 days in the current year and 183 days over three years, counting all days this year, one third of last year's days, and one sixth of the days from the year before that.
If you are a tax resident, yes, the US taxes worldwide income. Tax treaties and the foreign tax credit can reduce double taxation. Non-resident aliens are taxed only on US-source income.
Report foreign financial accounts on an FBAR (FinCEN Form 114) if their combined value tops $10,000 at any point in the year, and report specified foreign financial assets on Form 8938 if you exceed the FATCA thresholds.
Yes. IRS publications and forms (Publication 519, Form 1040, Form 1040-NR) are published free and are in the public domain. Only filing obligations and any tax due apply.