Substantial Presence Test

Global families residing in multiple countries may run the risk of being considered a resident alien (“RA”) of the United States for tax purposes even without obtaining a green card.  This risk is very problematic as the United States taxes its citizens and residents on their worldwide income.  When an individual does not have a green card and is transiently present in the United States s/he runs the risk of satisfying the substantial presence test, pursuant to which an alien individual may be considered a RA, and subsequently subject to U.S. income tax on his/her worldwide income.