Substantial Presence Test #digitalnomad #taxlaw #expat #foreigner

Summary

The transcript discusses the IRS's substantial presence test for foreign nationals in the United States, which determines tax residency status based on days physically present in the country. The test involves a three-year calculation that counts full days in the current year, one-third of days from the previous year, and one-sixth of days from the year before that. If the total adds up to 183 days or more, the individual could be classified as a US tax resident and potentially be required to pay US taxes on their worldwide income.