Who is categorized as a non-resident alien for tax purposes?

The correct categorization of a non-resident alien for tax purposes involves the criteria of the Green Card test and the substantial presence test. A non-resident alien is defined as an individual who does not meet either of these specific tests.

The Green Card test assesses whether an individual is a lawful permanent resident of the United States; if someone has a Green Card, they are considered a resident alien. The substantial presence test looks at the number of days an individual is physically present in the U.S. over a three-year period.

Therefore, an individual who doesn’t pass either the Green Card test or the substantial presence test is classified as a non-resident alien. This distinction is crucial for tax implications, as non-resident aliens are taxed differently than resident aliens and U.S. citizens.

In contrast, individuals holding a Green Card are residents for tax purposes, and being born in the U.S. automatically grants citizenship, resulting in residency status. If an individual’s spouse is a U.S. citizen, this relationship does not affect the individual’s residency status without further criteria being met regarding physical presence or immigration status.