How Are Different Visa Types Taxed in the United States?

Your immigration visa determines where you can live and work in the United States, but it does not automatically determine how the IRS taxes you. According to the IRS, your tax residency status under U.S. tax law (nonresident alien, resident alien, or dual-status alien) operates independently from your immigration status. The same H-1B visa holder could be taxed as a nonresident in year one and as a resident in year two, based solely on the days spent in the U.S.

This comprehensive chart shows how the IRS treats each major visa category for tax purposes. You’ll see which visa types count days toward the substantial presence test, which forms you typically file, and what special tax rules apply to your situation. Whether you’re on a student visa, wondering about your first tax return, or an L-1 transferee calculating your U.S. tax liability, this guide provides the clarity you need.

Understanding your tax status matters because it determines whether you report only U.S.-source income or your worldwide income, which deductions you can claim, and which IRS forms you must file. Getting this wrong can result in overpaying taxes, missing valuable benefits, or facing IRS penalties.

Your Visa Type Determines How You’re Taxed in the U.S.

Resident vs nonresident status changes everything—from filing forms to tax rates.

How Your Visa Affects Your U.S. Tax Status

The IRS divides everyone in the U.S. into three categories for tax purposes:

Nonresident Aliens: Generally taxed only on U.S.-source income at a flat 30% rate (or lower treaty rate) for passive income, and graduated rates for effectively connected income.
Resident Aliens: Taxed on worldwide income at the same progressive tax rates as U.S. citizens. You become a resident alien by either receiving a green card or passing the substantial presence test.
Dual-Status Aliens: Split-year filers who transition between nonresident and resident status mid-year, typically in arrival or departure years.

Your visa type influences which category applies to you in two critical ways:

Exempt Individual Status: Certain visa categories (students, teachers, diplomats) have their days excluded from the substantial presence test for a limited time, keeping them as nonresidents longer.
Immediate Day Counting: Most work visas (H-1B, L-1, E-2) count every day from arrival, meaning you typically become a tax resident quickly.

What Is the Substantial Presence Test?

The substantial presence test determines resident alien status by counting days physically present in the U.S. over three years. You meet the test if you’re present for at least 183 days using this formula:

All days present in the current year
1/3 of days present in the prior year
1/6 of days present in the year before that

Example: In 2026, you spent 120 days in the U.S. In 2025, you spent 120 days (120 ÷ 3 = 40). In 2024, you spent 120 days (120 ÷ 6 = 20). Total: 120 + 40 + 20 = 180 days. You don’t meet the test. But if you spent 130 days in 2026 instead, your total would be 190 days and you would pass the test.

Certain visa holders are “exempt individuals” whose days don’t count toward this test for specific periods. This exemption keeps them as nonresident aliens longer, which can provide tax advantages in some situations.

U.S. Visa Taxation Chart by Category

Student and Scholar Visas

Visa Type	Purpose	Days Count Toward Test?	Typical Initial Status	Primary Form	Special Rules
F-1	Academic student	Exempt for 5 calendar years	Nonresident Alien	Form 1040-NR	Must file Form 8843 annually to claim exemption
F-2	F-1 dependent	Exempt for 5 calendar years	Nonresident Alien	Form 1040-NR	Exemption tied to principal F-1 holder’s status
J-1 (Student)	Exchange visitor student	Exempt for 5 calendar years	Nonresident Alien	Form 1040-NR	Must file Form 8843 annually
J-1 (Teacher/Researcher)	Exchange teacher/professor	Exempt for 2 calendar years	Nonresident Alien	Form 1040-NR	Shorter exemption than students
J-2	J-1 dependent	Exempt (same as J-1)	Nonresident Alien	Form 1040-NR	Exemption matches principal holder
M-1	Vocational student	Exempt for 5 calendar years	Nonresident Alien	Form 1040-NR	Similar to F-1 treatment
Q-1	Cultural exchange	Exempt while complying	Nonresident Alien	Form 1040-NR	Must substantially comply with visa requirements

Critical Note: The 5-year exemption for F-1 students is cumulative across all F-1 periods, not per visa. If you studied on an F-1 for 3 years, left, and returned on an F-1, you only have 2 years of exemption remaining.

Work and Employment Visas

Visa Type	Purpose	Days Count Toward Test?	Typical Initial Status	Primary Form	Special Rules
H-1B	Specialty occupation worker	Yes, from day one	Usually Resident Alien after partial year	Form 1040	No exemption; often become residents quickly. See H-1B tax guide
H-1B1	Chilean/Singapore worker	Yes, from day one	Usually Resident Alien after partial year	Form 1040	Treaty provisions may apply
H-2A	Agricultural worker	Yes, from day one	Varies by length of stay	Form 1040 or 1040-NR	Seasonal nature affects tax status
H-2B	Temporary non-agricultural worker	Yes, from day one	Varies by length of stay	Form 1040 or 1040-NR	Tax status depends on duration
H-4	H-1B dependent	Yes, from day one	Follows primary holder	Form 1040 or 1040-NR	Work authorization affects income reporting
L-1	Intracompany transferee	Yes, from day one	Usually Resident Alien after partial year	Form 1040	No exemption; days count immediately
L-2	L-1 dependent	Yes, from day one	Follows primary holder	Form 1040 or 1040-NR	May have work authorization
E-1	Treaty trader	Yes, from day one	Usually Resident Alien after partial year	Form 1040	Treaty benefits may apply to certain income
E-2	Treaty investor	Yes, from day one	Usually Resident Alien after partial year	Form 1040	Business income considerations
E-3	Australian specialty worker	Yes, from day one	Usually Resident Alien after partial year	Form 1040	Similar to H-1B treatment
TN	NAFTA professional (Canada/Mexico)	Yes, from day one	Usually Resident Alien after partial year	Form 1040	May qualify for closer connection exception if spending limited time
O-1	Extraordinary ability	Yes, from day one	Usually Resident Alien after partial year	Form 1040	High-earning professionals; careful tax planning needed
P-1	Athlete/entertainer	Yes, from day one	Varies by tour schedule	Form 1040 or 1040-NR	Touring schedules affect residency determination
R-1	Religious worker	Yes, from day one	Usually Resident Alien after partial year	Form 1040	Housing allowance considerations

Key Insight: Most employment visa holders become resident aliens quickly. If you’re on an H-1B and spent 120 days in the U.S. this year, 180 days last year, and 240 days the year before, you’ve already passed the test: 120 + (180÷3) + (240÷6) = 220 days.

Diplomatic and Government Visas

Visa Type	Purpose	Days Count Toward Test?	Typical Status	Primary Form	Special Rules
A-1	Ambassador/diplomat	No, exempt	Nonresident Alien	Form 1040-NR	Days don’t count if full diplomatic status
A-2	Foreign government official	No, exempt	Nonresident Alien	Form 1040-NR	Must have diplomatic/consular status
A-3	A-1/A-2 employee or attendant	Yes, count toward test	Varies	Form 1040 or 1040-NR	Household staff exception – days count
G-1/G-2/G-3/G-4	International organization representative	No, exempt	Nonresident Alien	Form 1040-NR	Days don’t count for qualifying employees
G-5	G-1 through G-4 employee	Yes, count toward test	Varies	Form 1040 or 1040-NR	Household staff exception – days count

Critical Distinction: If you work directly for a foreign government or international organization (A-1, A-2, G-1 through G-4), your days don’t count. But if you’re household staff (A-3, G-5), your days count from day one.

Family-Based and Other Visa Categories

Visa Type	Purpose	Days Count Toward Test?	Typical Status	Primary Form	Special Rules
B-1/B-2	Business visitor/tourist	Yes, from day one	Usually remains Nonresident	Form 1040-NR	Short stays typically don’t trigger residency
K-1/K-2	Fiancé(e)/child of fiancé(e)	Yes, from day one	Transitions to Resident	Form 1040 (after marriage)	Often become residents quickly after marriage/green card
Green Card Holder	Lawful permanent resident	Automatic resident status	Resident Alien	Form 1040	Resident alien immediately upon receiving green card. See green card tax obligations

What Forms Do I Need to File Based on My Visa?

Your tax residency status determines which forms you file:

Nonresident Aliens File:

Form 1040-NR: Annual tax return for nonresident aliens
Form 8843: Statement documenting exempt individual status (required annually for F, J, M, Q visa holders even with no income)
Form W-8BEN: Provided to U.S. payers to claim treaty benefits
Form 8833: Required if claiming treaty-based return positions that override U.S. tax law

See complete guidance in our Form 1040-NR filing guide.

Resident Aliens File:

Form 1040: Standard U.S. individual income tax return (same as U.S. citizens)
Form 2555: If qualifying for Foreign Earned Income Exclusion (rare for visa holders in the U.S.)
Schedule A: For itemized deductions
FinCEN Form 114 (FBAR): If foreign financial accounts exceed $10,000 aggregate

See complete guidance in our Resident Alien filing guide.

Dual-Status Aliens File:

Form 1040 AND Form 1040-NR: Both forms required, labeled as “Dual-Status Return”
Cannot e-file; must mail paper return

Learn more in our dual-status alien filing guide.

Your Tax Status Can Change Mid-Year on a Visa

Many visa holders become U.S. tax residents without realizing it.

Do I Need to Pay Taxes on Income From My Home Country?

This depends entirely on whether you’re a resident or nonresident alien:

Nonresident Aliens: Only taxed on U.S.-source income. Income from your home country is not taxable in the U.S.

Resident Aliens: Must report worldwide income from all sources, including:

Foreign wages and salaries
Foreign business income
Foreign investment income
Foreign rental income
Foreign pension distributions

However, resident aliens can use tax treaties, the Foreign Tax Credit, and, in some cases, the Foreign Earned Income Exclusion to reduce or eliminate double taxation.

How Do Tax Treaties Affect Visa Holders?

The U.S. has income tax treaties with many countries that provide special benefits for certain visa holders:

Students and Scholars: Many treaties exempt scholarship income or provide reduced withholding rates on fellowship payments.

Teachers and Researchers: Some treaties exempt teaching income for a specified period (often 2 years).

Business Income: Treaties may reduce withholding rates on dividends, interest, and royalties.

To claim treaty benefits, you must:

Be a resident of a treaty country
Meet the treaty’s specific requirements
File Form 8833 if the treaty position overrides standard U.S. tax rules
Provide Form W-8BEN to income payers

Example: A graduate student from India on an F-1 visa may qualify for a treaty exemption on up to $5,000 of scholarship income, plus additional exemptions for teaching or research assistantships.

What Happens in My First or Last Year in the U.S.?

Most visa holders file as dual-status aliens in their arrival or departure year:

Arrival Year Example:

You arrived on an H-1B visa on July 1
January 1 through June 30: Nonresident alien period (taxed only on U.S. income earned during this period, if any)
July 1 through December 31: Resident alien period (taxed on worldwide income)
File both Form 1040-NR and Form 1040, clearly marked “Dual-Status Return.”

Departure Year Example:

You had a green card, but surrendered it on September 15
January 1 through September 15: Resident alien period
September 16 through December 31: Nonresident alien period
Also file a dual-status return

Filing a dual-status return for the first time? If you moved to the U.S. midyear and need help determining your residency start date, splitting income correctly between periods, or deciding whether to make the nonresident spouse election, our team specializes in tax filing for foreign nationals and dual-status filers. We’ll handle the complex allocation rules and ensure you’re positioned correctly from day one.

How Do I Track My Days for the Substantial Presence Test?

Careful day counting is essential for determining your tax status:

Keep Records of:

Entry and exit dates (passport stamps, boarding passes, travel itineraries)
Every trip outside the U.S., no matter how brief
Days present for any part of the day count as full days
Travel days where you enter or leave the U.S. count as days of presence

Don’t Count:

Days commuting from Canada or Mexico if you regularly work in the U.S. but live across the border
Days in the U.S. less than 24 hours while in transit between two foreign locations
Days you’re unable to leave due to a medical condition that developed while in the U.S.
Days in the U.S. as a foreign vessel crew member

Closer Connection Exception: Even if you meet the substantial presence test, you can be treated as a nonresident if you:

Were present for less than 183 days in the current year
Maintained a tax home in a foreign country all year
Had a closer connection to that foreign country than the U.S.
File Form 8840 to claim this exception

What Are Common Tax Mistakes Visa Holders Make?

Filing the Wrong Form: H-1B holders in their second year often mistakenly file Form 1040-NR when they should file Form 1040 because they’ve become resident aliens.
Not Filing Form 8843: F-1 and J-1 visa holders must file this form annually to document their exempt status, even with no income.
Claiming Exemption Beyond the Limit: F-1 students assume they’re exempt indefinitely when the 5-year limit has expired.
Incorrect Treaty Claims: Claiming treaty benefits without proper documentation or beyond the treaty’s specified time limits.
Missing State Tax Obligations: Many states have their own residency rules that differ from federal rules.
Not Reporting Foreign Income: Resident aliens failing to report worldwide income, particularly from their home country.

Made any of these mistakes? Whether you filed the wrong form, missed Form 8843, or didn’t realize you needed to report foreign income after becoming a resident alien, our tax experts for foreign nationals can help you file amended returns to correct errors. Many visa holders discover these issues years later, and we specialize in getting you compliant without the stress.

How Your Visa Tax Status Affects Your Future

Your tax compliance record matters beyond just avoiding penalties:

Immigration Applications: USCIS reviews tax transcripts when processing green card applications, visa renewals, and citizenship petitions. Filing gaps or inconsistencies can delay or derail your application.
Green Card Abandonment Risk: Green card holders who file Form 1040-NR signal to immigration authorities that they may have abandoned their permanent residence status.
Treaty Benefits: Claiming treaty benefits incorrectly can create issues if you later apply for citizenship, as you must show continuous tax residency.
Exit Tax Considerations: Long-term green card holders (8+ years) may face exit tax obligations when surrendering their cards.

When Should I Get Professional Help?

Consider working with an expat tax specialist if you:

Are transitioning between visa types mid-year
Have income from multiple countries
Are claiming tax treaty benefits
Filed incorrectly in past years and need to amend
Are applying for a green card or citizenship
Have foreign financial accounts exceeding reporting thresholds
Received stock options, RSUs, or other complex compensation

Most visa holders have straightforward situations, but getting your first return right sets you up for success in future years. Tax mistakes can complicate your immigration journey and result in unnecessary penalties.

Your Next Steps as a Visa Holder in the U.S.

Your visa type as a foreign national provides important clues about your tax status, but it’s not the complete picture. The substantial presence test, your home country’s tax treaty with the U.S., and your specific income sources all play a role.

If you’ve just arrived in the U.S., keep meticulous records of your travel from day one. If you’re approaching the end of your exempt period as an F-1 or J-1 visa holder, plan ahead for the transition to resident alien status. And if you’re unsure which forms to file, professional guidance now can prevent costly mistakes later.

Ready to get your visa holder taxes done right? Our team has helped thousands of visa holders, green card applicants, and foreign nationals stay compliant while minimizing their U.S. tax burden. Get started with Greenback today, and you’ll have peace of mind knowing your taxes are handled correctly.

Have questions about your specific visa situation? Contact us, and one of our Customer Champions will be happy to help. For specific tax advice tailored to your circumstances, you can also schedule a consultation with one of our expat tax experts.

Make Sure Your Visa Is Being Taxed Correctly

We’ll review your visa type, days in the U.S., and filing status to keep you compliant.

Disclaimer: This article is for informational purposes only and does not constitute tax or legal advice. Tax laws are complex and change frequently. Visa holders should consult with qualified tax professionals regarding their specific situations. For official IRS guidance, see Publication 519, U.S. Tax Guide for Aliens.

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