A Guide to US Residency Rules for Foreigners

The United States attracts millions of foreigners each year for education, employment, business, and family reasons.

However, one needs to understand the rules of residency to stay or work in the U.S. In general, regardless of whether you intend to stay temporarily or permanently, your residency status determines your tax obligations, certain visa options, and benefits you might be eligible for. This guide will explain some important aspects of the rules underlying U.S. residency for foreigners, from how residency is defined to how to lawfully maintain that status.

What is U.S. residency for foreigners?

Within the United States, residence may mean different things depending on the context. The Internal Revenue Service defines residency mainly for tax purposes, but the definition used by U.S. Citizenship and Immigration Services applies to immigration purposes.

You may normally be categorized as:

• Resident Alien: A non-U.S. citizen who meets either the IRS or immigration definition of residency.
• Nonresident Alien: A foreigner who does not meet the residency requirements.
• Each class affects your taxes, visa privileges, and ability to stay in the country long-term.
• IRS Residency Tests: Substantial Presence and Green Card
• The IRS has two primary tests to check whether a foreigner is a U.S. tax resident.

1. The Green Card Test

If you have a U.S. Green Card, or Permanent Resident Card, you are automatically considered a resident of the United States for tax purposes and do not need to count the days spent in the country.

2. The Substantial Presence Test

You may be considered a tax resident if you don't have a Green Card but have been in the U.S. for a certain number of days.

• You meet the Substantial Presence Test if you are physically present in the U.S. for at least:
• 31 days during the current year, an
• 183 days in the current year and during each of the two preceding years:
• All days in the current year
• 1/3 of the days in the first preceding year
• 1/6 of the days in the second preceding year
• For example, if you spent 120 days in each of the last three years, the formula equals:
• 120 + 40 + 20 = 180 days — you are not considered a tax resident.
• Immigration Residency: Green Cards and Visa Categories
• The U.S. immigration system recognizes several paths to residency.

1. Temporary Residency (Non-Immigrant Visas)

Temporary visas are those that foreigners stay for a limited period: students, tourists, and workers. This classification will include:

• F-1 (Student Visa)
• H-1B (Work Visa)
• L-1 (Intra-company Transfer Visa)
• B-1/B-2 (Business/Tourist Visa)
• These types of visas allow you to stay for a certain period but do not give permanent residency rights.

2. Permanent Residency (Green Card Holders)

Permanent residency lets foreigners stay in the U.S. to live and work indefinitely. You get a Green Card through:

• Employment-based sponsorship
• Family-based sponsorship
• Refugee or asylum status
• The Diversity Visa (Green Card Lottery)
• Once you obtain lawful permanent resident status, you are expected to maintain continuous residence and avoid long absences to keep your status valid.

Maintaining U.S. Residency Status

You must follow certain rules once you obtain your U.S. residency.

Avoid Long Trips Abroad:

Residing outside the U.S. for more than six months may raise questions about whether you have the intention to maintain your residency.

File Taxes as a Resident:

• Green card holders and substantial presence residents are required to annually file U.S. tax returns, even when they reside abroad.

Renew or Replace Documents:

• Keep your Green Card updated every 10 years and your visa status valid.

Ties with the United States:

• Keep a U.S. address, bank account, or property to demonstrate a continued connection to the country.

Taxes that U.S. Residents Must Pay

U.S. citizens and resident aliens are required to report their worldwide income to the IRS, whereas nonresidents are taxed only on U.S.-sourced income.

Resident aliens can enjoy the following tax benefits :

• Filing jointly with a spouse
• Claiming dependents
• Access to certain deductions and credits
• Failure to comply with U.S. tax laws could mean facing fines or loss of residence status.

Conclusion

Changing or Losing Residency Status Your residency status can change if you leave the U.S. for an extended period, violate visa terms, or fail to renew your Green Card. You also can abandon your residency on your own by filing Form I-407. If you spend most of your time abroad but still have strong U.S. ties, consult an immigration attorney to preserve your status and avoid legal issues. Conclusion Understanding U.S. residency rules is important for every foreigner who intends to either live, study, or work in the United States. The rules will affect your tax obligations, your immigration rights, and your future long-term plans. Whether temporary or permanent, the more informed you remain, the more compliant you will be with IRS and USCIS requirements. For the most accurate and updated information, always consult official government sources or a licensed immigration professional.