Tax
Resident Alien
Also known as: RA, US Resident Alien, Tax-Resident Alien
Quick answer
A Resident Alien is a non-US-citizen who meets either the Green Card Test or the Substantial Presence Test for US tax purposes. Resident aliens are taxed on worldwide income on the same terms as US citizens — including FEIE/FTC eligibility, FBAR/FATCA obligations, and standard Form 1040 filing. Distinct from immigration "resident alien" status (the green-card-holder term) — the IRS definition is purely fiscal.
"Resident alien" is an IRS term of art (26 U.S.C. § 7701(b)) that turns on two alternative tests:
1. Green Card Test — the individual is a lawful permanent resident at any point during the calendar year. Even one day of green-card status during the year makes them a resident alien for that entire year.
2. Substantial Presence Test — the individual was physically present in the US for the requisite number of days under the SPT formula.
Meeting either test makes the individual taxed as a US tax resident: worldwide income, Form 1040 (not Form 1040-NR), all standard deductions, FEIE/FTC eligibility for foreign-source income, and full FBAR/FATCA disclosure obligations on foreign accounts.
Key distinctions vs. the immigration term "resident alien": the IRS definition is purely fiscal. A green-card holder living abroad full-time is still a US resident alien for tax purposes (worldwide-taxation obligation continues). A US-resident H-1B worker who hasn't yet been in the US long enough to meet the SPT is NOT a resident alien for tax purposes — they're a non-resident alien even though they're a lawful US-resident immigration-wise.
Dual-status year. The year an individual transitions from non-resident alien to resident alien (or vice versa) is a dual-status year. Different tax rules apply to the pre- and post-transition halves of the year. Form 1040 plus dual-status statement, or Form 1040-NR for the non-resident portion.
First-Year Choice. Some non-resident aliens can elect to be treated as resident aliens for the year of arrival (Form 1040 + statement attaching to the return). Useful when the standard deduction and filing-jointly options exceed the non-resident-alien tax outcome.
Claiming non-residency despite SPT. The Closer Connection Exception (Form 8840) lets some SPT-meeting individuals claim non-resident-alien status for the year if they had a closer connection to a foreign country and weren't in the US 183+ days during the current year alone.
Sources
Last factual review: 2026-05-08.
Related terms
Non-Resident Alien (NRA)
A Non-Resident Alien (NRA) is a non-US-citizen who meets neither the Green Card Test nor the Substantial Presence Test. NRAs are taxed by the US only on US-source income (typically at flat rates, often 30% gross) and on income effectively connected with a US trade or business (at standard graduated rates). Filed on Form 1040-NR. NRAs are NOT subject to worldwide-income taxation, FBAR, FATCA, or full FEIE/FTC.
Substantial Presence Test (SPT)
The Substantial Presence Test is the IRS's primary test for determining whether a non-US citizen is a US tax resident. It applies a weighted formula: count all days physically present in the US in the current year + 1/3 of days in the prior year + 1/6 of days two years prior. If the total reaches 183, you are a US tax resident — subject to certain exemptions and the closer-connection exception.
Tax Residency
Tax residency determines which country has primary right to tax your worldwide income. Each country sets its own tests — typically based on physical presence (often 183+ days/year), domicile, primary economic interests, or family ties. Holding a residence permit does not automatically establish tax residency, and tax residency does not require a residence permit. Dual tax residency is resolved by tax-treaty tie-breaker rules.
FEIE (Foreign Earned Income Exclusion)
FEIE lets US citizens and resident aliens exclude up to $132,900 (2026) of foreign-earned income from US federal income tax — but not from Social Security/self-employment tax. To qualify, the taxpayer must meet either the Bona Fide Residence Test (full-year tax residence in a foreign country) or the Physical Presence Test (330 full days abroad in any 12-month period). Claimed on IRS Form 2555 attached to Form 1040.