When does residency start?
- Green card test: from the first day you are in the US as a lawful permanent resident.
- Substantial presence test: if you are present at least 31 days this year and 183 days over three years, counting all days this year, a third of last year's and a sixth of the year before. Residency generally starts on the first day you were present in the year you meet the test. See substantial presence test.
Days as an exempt individual, such as some students and teachers, do not count, and a closer connection to another country or a treaty tie-breaker can change the result.
What is a dual-status return?
A return for a year in which you were a non-resident for part and a resident for the rest. You file Form 1040 for the resident period with a statement on Form 1040-NR for the non-resident period, or the reverse in a year you leave. In a dual-status year, you cannot take the standard deduction and some credits are limited. Income from before residency is taxed only if it is US-source.
What choices are available?
| Option | Effect |
|---|---|
| Dual-status return | Foreign income before residency is not taxed; standard deduction not allowed |
| Joint return electing full-year residence, for married couples | Standard deduction and joint rates, but worldwide income for the whole year is taxed |
| First-year choice | Lets some people who arrive late in the year start residency earlier |
Compare the tax under each before choosing. Foreign taxes paid on income taxed in the US can generally be claimed as a credit.
How do you prepare the first return?
Find your residency start date
From your arrival records and immigration status.
Gather US and foreign income
Split by before and after residency.
Get a taxpayer number
An SSN if eligible, or an ITIN for a spouse or yourself if not. See what an ITIN is.
Choose the filing approach
Dual-status or full-year election.
File foreign account reports
FBAR and Form 8938 where thresholds are met. See FBAR vs Form 8938.
Which immigration statuses usually make you resident?
Green card holders are resident from the start date of their card. Workers on visas such as H-1B or L-1 usually become resident under the substantial presence test once they have been present long enough. Students on F or J visas are generally exempt from counting days for their first five calendar years, and teachers and researchers on J visas for two of the last six, so they are usually non-residents in those years.
What foreign items need attention?
- Foreign bank and investment accounts, reported once you are resident.
- Large gifts from family abroad, which may need Form 3520. See Form 3520.
- Interests in foreign companies, which can need their own information returns.
- Foreign mutual funds and similar investments, which are taxed under special rules.
What about state returns?
States have their own residency rules. In the first year you usually file a part-year resident return for the state you moved to.
Some states also tax income from before you moved there differently.
New to the US?
We work out your residency start date, compare dual-status and full-year options, and file your federal, state and foreign account reports.
Questions people ask
When does my US tax residency start?
For green card holders, the first day present with the card. Otherwise, usually the first day present in the year you meet the substantial presence test.
What is a dual-status tax return?
A return for a year you were a non-resident for part and a resident for the rest, combining Form 1040 and a Form 1040-NR statement.
Is my foreign income before I moved taxable in the US?
On a dual-status return, foreign income from before residency is generally not taxed. A full-year election changes that.
Do I report my foreign bank accounts after moving?
Yes, once resident, through the FBAR and Form 8938 if the thresholds are met.
Sources
Every fee, date and rule on this page was taken from these official and primary sources.
Rules and fees change. If you are reading this long after October 1, 2026, confirm the figures with the source before you rely on them.
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This guide is general information. It is not tax or legal advice for your situation.