Exempt Individual

An individual in any of the following categories is temporarily exempt from counting days toward the substantial presence test:

• Student
• Teacher or trainee
• Closer connection to home country (Out of Scope)

Resident aliens are taxed like U.S. citizens, while nonresident aliens are taxed differently. Most students fall under the nonresident alien status.

Generally, exempt individuals cannot choose to count their exempt days in order to be treated as a resident under the substantial presence test. (An exception for married taxpayers electing to file jointly where one spouse is a U.S. citizen or resident will be discussed later in the lesson.)

Click here to refer to the Substantial Presence Test? - Decision Tree from Publication 4011..