Tax Resident Workshop for MIT Students and Scholars - March 7, 2024 - Q&A

Sep 19, 2026

Tax Resident Workshop for MIT students and scholars explains how U.S. tax residency is determined using the Green Card Test and the Substantial Presence Test, including exemptions for students and scholars on specific visa categories. It covers key residency concepts such as exemption periods, the Closer Connection exception, residency start dates, and dual-status residency when a person is resident for part of the year and nonresident for the rest. The agenda also references filing requirements, tax treaty benefits, distributed MIT forms, state filings, tax scams, and preparation.

LanguageEnglish

CategoryGeneral

FormatPDF

Pages34

Reading Time12 min

AccessFree to download

Agenda

Residency Status

Filing Requirements

Tax Return Basics

FICA Reportable Income

Tax Treaties

MIT Distributed Tax Forms

State Filings

Tax Scams

Tax Preparation

Q&A

Residency Status

Green Card Test

Substantial Presence Test

Nonresident Rules and Spousal Election

Substantial Presence Exemptions

Definition of Student and Scholar

Residency Start Date

Dual-Status Residency

Tax Resident Workshop for MIT Students and Scholars March 7, 2024 Presenter 􀁘 Jeremy Raphael 􀁘 Tax Specialist, Tax Team, Office of the Vice President for Finance Page 1 Disclaimer 􀁘 The content of this presentation is only intended to convey general information . It is not intended to provide legal, business, accounting, or tax advice and/or opinions . 􀁘 This presentation is intended for educational purposes only and does not replace independent professional judgment. 􀁘 Please keep this in mind during Q&A . Page 1 Agenda 􀁘 Residency Status 􀁘 Filing Requirements 􀁘 Tax Return Basics 􀁘 FICA Reportable Income 􀁘 Tax Treaties 􀁘 MIT Distributed Tax Forms 􀁘 State Filings 􀁘 Tax Scams 􀁘 Tax Preparation 􀁘 Q&A Page 1 Residency Status 􀁘 Resident for U.S. income tax purposes is determined by 2 tests: 1. Green Card Test 2. Substantial Presence Test – Present in the U.S. for at least 183 days in a calendar year or in U.S. for a total of 183 days in a 3-year period using a special formula 􀁘 If 1) neither test is met and 2) not a U.S. citizen 􀃆 then nonresident for tax purposes 􀁘 Nonresident spouse of resident may elect resident treatment 􀁘 Note: • Prior visa and U.S. visit history must be considered • Tax residency is separate from immigration residency Page 1 Substantial Presence Exemptions 􀁘 Definition of Student – Includes individuals enrolled in an MIT degree and nondegree (Visiting, Special, or Exchange) program 􀁘 Definition of Scholar-Postdocs, Lecturers, Visiting Professors, Scientists, Scholars and Engineers, and others that have graduated and are now working at MIT 􀁘 Student 5-year exemption and Scholar 2 year exemption 􀁘 Students on a F, J, M, or Q visa 􀃆 Exempt for 5 calendar years 􀁘 Scholars on a J or Q visa 􀃆 Exempt for 2 calendar years 􀁘 Exemption allows students and scholars to remain nonresidents for this period of years, thus “exempt” from the substantial presence test 􀁘 Exemption period is by calendar year, even if only in U.S. 1 day during a calendar year, it counts toward total years exempt 􀁘 Closer Connection Exception 􀃆 Students Only 􀁘 Use Form 8843 for assistance in understanding the exemption period Page 1 Form 8843 Page 1 Residency Start Date The residency start date is the earlier of the dates determined below: 􀁘 Substantial Presence Test – the first day you are present in the U.S. during the calendar year 􀁘 Green Card Test – the date you become a lawful permanent resident Example: A student on a J-1 visa since September 2019: 􀁘 Five calendar years have passed (2019, 2020, 2021, 2022, 2023) that are exempt from the substantial presence test 􀁘 Year 2024 is not exempt. On the 183rd day of 2024, the student met the substantial presence test and [is a U.S. tax](is a U.S. tax) resident. 􀁘 Under the substantial presence test, the residency start date is the first date of the year the student was in the U.S. Page 1 Dual-Status Residency In rare circumstances, an individual can claim dual-status residency, meaning he/she was a U.S. tax resident for part of the year, and a nonresident for the other part of the year. This typically occurs when: 􀁘 Entering the U.S. after January 1 during the year the substantial presence is met. 􀁘 Since the start date of residency status is the first day of the calendar year a person is present in the U.S. , that person can claim to be a nonresident for the days before they entered the U.S. and a resident for the period after. 􀁘 Any individual who becomes a lawful permanent resident during the year may claim to be a nonresident prior to that date. Why claim dual-status? 􀁘 Exemption on income earned outside the U.S. during nonresident period 􀁘 Tax Treaty Benefits Page 1 Filing Requirements Page 1

FAQs

How does the workshop define U.S. tax residency for MIT students and scholars?

It states that U.S. income tax resident status is determined by the Green Card Test or the Substantial Presence Test (183 days in the U.S. in a calendar year or 183 days across a 3-year period using a special formula).

What exemptions can exempt students and scholars from the Substantial Presence Test?

Students on F, J, M, or Q visas are exempt for 5 calendar years, while scholars on J or Q visas are exempt for 2 calendar years. Exemptions allow staying nonresident for those years and are counted by calendar year even if present for only 1 day.

When can someone claim dual-status residency?

The workshop says dual-status residency may occur when a person is a U.S. tax resident for part of the year and a nonresident for the rest, commonly when entering after January 1 during the year the Substantial Presence Test is met, or when becoming a lawful permanent resident during the year.

Sep 19, 2026

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