👋What is a Non Resident Alien (NRA)?
A Nonresident Alien (NRA) is an individual who is not a U.S. citizen and does not meet the IRS definition of a U.S. tax resident.
If you are not a U.S. citizen, you are generally considered a Nonresident Alien unless you qualify as a resident under one of two IRS tests:
🧾 The Two Tests That Can Change Your Status
1️⃣ Green Card Test
You are considered a U.S. tax resident if you have been granted lawful permanent residency at any time during the year.
This means:
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You hold a valid U.S. Green Card (Form I-551)
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You are legally allowed to reside permanently in the United States
2️⃣ Substantial Presence Test
You may also be considered a U.S. tax resident based on the amount of time you spend in the United States.
To meet this test:
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You must be present in the U.S. for at least 31 days in the current year, and
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A total of 183 days over a 3-year period, calculated as:
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All days in the current year
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1/3 of the days in the previous year
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1/6 of the days in the year before that
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⚠️ Important Exceptions
Certain days do not count toward the Substantial Presence Test, including time spent in the U.S. as:
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A foreign government-related individual
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A teacher or trainee (J or Q visa)
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A student (F, J, M, or Q visa)
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A professional athlete competing in a charitable event
⚠️ Why This Matters for FIRPTA
Your classification as a Nonresident Alien vs. U.S. tax resident directly determines:
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Whether FIRPTA withholding applies
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Whether you may qualify for exemptions or reduced withholding
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Your U.S. tax filing obligations
Misclassification can lead to unnecessary withholding or compliance issues.