Common Terms and Definitions
Nonresident Alien
A nonresident alien is an individual who is not a United States Citizen or a resident alien. For federal tax purposes, individuals are generally taxed as nonresident aliens if they do not fall into one of the following categories:
- United States Citizen
- United States Resident with a Green Card
- Individual without a green card who meets the Substantial Presence Test (defined below)
Resident Alien
A resident alien is an individual who is not a United States citizen and falls into one of the following categories:
- United States Resident with a Green Card
- Individual without a green card who meets the Substantial Presence Test (defined below)
Substantial Presence Test
A nonresident alien will be considered a U.S. resident for tax purposes if he/she meets the substantial presence test under the conditions listed below. The test must be applied each year on a prospective basis, always taking into account the current year and the preceding years.
A nonresident alien will meet the substantial presence test with respect to any current calendar year if:
- They were present in the United States for at least 31 days during the current calendar year; and
- The sum of the number of days they were present in the United States during the current year and the two preceding calendar years equals or exceeds 183 days as computed using the following formula:
Current year days in U.S. | X1 = number of days |
1st preceding year days in U.S. | X 1/3= number of days |
2nd Preceding year days in U.S. | X 1/6= number of days |
Total days in U.S. | = number of days |
If Line D equals or exceeds 183 days, the individual has passed the substantial presence test for the current calendar year.
Visa
A visa is a permit to apply to enter the United States. If needed, it is normally obtained at an American consulate outside the United States. It classifies the visit as business, tourism, etc. and is usually valid for multiple visits to the United States during a specified period of time. A visa allows travel to the United States but does not guarantee that the individual will be allowed to enter the United States (see discussion below under Arrival/Departure Record (I-94)).
Visa Waiver Program
The visa waiver program enables citizens of participating countries to travel to the U.S. for business or tourism for 90 days or less without obtaining a U.S. visa. The following countries participate in this program (as of July 2005):
Andorra
Australia
Austria
Belgium
Brunei
Denmark
Finland
France
Germany
Iceland
Ireland
Italy
Japan
Liechtenstein
Luxembourg
Monaco
the Netherlands
New Zealand
Norway
Portugal
San Marino
Singapore
Slovenia
Spain
Sweden
Switzerland
United Kingdom
Arrival/Departure Record (I-94)
Once a nonimmigrant visa is obtained, travel to the United States is authorized. This does not, however, guarantee that the person will be allowed to enter the United States. USCIS has authority to grant or deny admission to the United States and to determine the length of stay.
An Arrival/Departure Record is created by the USCIS when the traveler is inspected upon arrival in the United States. The inspector endorses the Form I-94 (Arrival/Departure Record) with the date, place of arrival, class of admission (which corresponds to the visa class), the length of time the traveler may remain in the United States, and any special conditions which may apply to the visit. The inspector keeps the Arrival portion of the form and returns the endorsed Departure portion to the traveler who must keep the card in their possession until they leave the United States. When the traveler leaves the United States, they must surrender the Departure portion of the I-94 to the airline representative, if they travel by air, or to the immigration or customs officer if they depart across the border to Canada or Mexico.
The I-94 document is critical in determining whether a nonresident alien visitor may be paid a fee or reimbursed expenses. A copy of this form (along with other forms previously discussed) must be obtained by the College before any payment can be processed.
Foreign National Information Form (FNIF)
All nonresident aliens paid by the College must fully complete and sign the FNIF. The information will allow the College to determine the U.S. residency for tax purposes.