top of page | Did you spend a lot of time in the US? Learn if you have become a US tax resident

Whoever visits the US is often should be careful not to become unintentionally a US tax resident. We are explaining here that the status implies obligations with the Internal Revenue Service (IRS).

There are two ways to become an American tax resident. One is by getting the Green Card, which allows the holder to remain in the USA with access to various rights. The other, who confuses a lot of people, is by the time of stay in US territory.

If any individual spends more than 183 days in the US, he becomes an American tax resident. However, they are not 183 runs, which would give approximately six months. The rule considers the time a person has spent in the US in the last three years. The calculation encompasses every day of the current year, a third of the previous year and a sixth of the second previous year. Therefore, the idea of ​​spending six months there and six months here does not work.

Practical example: Ruth makes regular trips to the USA, staying there for 80 days in 2017, 240 days in 2016 and 180 days in 2015. The equation should add all 80 days, 80 days 2016 (one third of 240) and30 days 2015 (one sixth of 180).The result will be 190, number greater than 183;So she is an American tax resident.

There are exemptions: Visas like F (study and work), J (trainee) and M (teacher) are exempt from the count of the 183 days.

Duties of the American tax resident

The American tax resident is a global tax payer. This means that it will have to declare everything you have, no matter where, to the US government. The income received in Brazil, in the US and any other country must be informed in form 1040.

The tax rate of the overall tax ranges from 15 to 39.6%, according to taxpayer income. And income tax in Brazil? '', you must be asking yourself. According to the legislation, paid taxes in Brazil can be used as US credit. If the tax rates of a certain tax charged in the two countries are not the same, it is necessary to pay the difference.

The American tax resident will also be subject to a tax that does not exist in Brazil: Dividend Distribution Tax, that is, the transfer of profits from a company to its partners. The good news is that, in this case, the tax is lower than that paid for non-American tax residents. For fiscal residents, the dividend rate is 0, 15 or 20%. For non-tax residents, the dividend tax from the US company is retained at the source at the rate of 30%.


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