Core

Substantial Presence Test

The Substantial Presence Test (SPT) uses a weighted formula across three years to determine if a foreign national is a US tax resident. If you meet the test, you are taxed on worldwide income. Understanding the SPT is essential for snowbirds and anyone splitting time between Canada and the US.

Key Points

  • You meet the SPT if you have 31+ days in the current year AND 183+ weighted days across three years.
  • The formula counts 100% of current-year days, one-third of prior-year days, and one-sixth of the year before that.
  • Exempt individuals (F-1 students, J-1 scholars) can exclude certain days from the count.
  • Form 8840 (Closer Connection Exception) can override the SPT if your tax home remains in Canada.

Action Items

  1. 1.Count your US presence days carefully for the current and two prior years.
  2. 2.Use the DualFiler Substantial Presence Test Calculator to check your status.
  3. 3.File Form 8840 by the tax deadline if you meet the SPT but want to claim the closer connection exception.
  4. 4.Keep records of travel dates, lease agreements, and ties to Canada as evidence of your tax home.

Frequently Asked Questions

Do travel days (arrival and departure) count toward the SPT?

Generally, you do not count the day you leave the US, but you do count the day you arrive. However, IRS guidance allows exclusion of transit days under certain conditions.

Can I use the treaty tie-breaker instead of Form 8840?

Yes, but the treaty tie-breaker (Form 8833) is a different mechanism with different consequences. The closer connection exception via Form 8840 is simpler for most snowbirds.

What happens if I accidentally meet the SPT?

You become a US tax resident for the entire calendar year and must report worldwide income. File Form 8840 if eligible, or consider the treaty tie-breaker rules.

Not sure which forms apply to you?

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