Tax and residency

Residency starting date

Also called Residency start date, First year of residency.

The residency starting date is the day a foreign national becomes a United States resident for income tax purposes, so that worldwide income is taxed from that day on: the first day of presence as a lawful permanent resident under the green card test, the first day of presence in the year under the substantial presence test, or the earlier of the two where both tests are met.

What it decides

26 U.S.C. 7701(b)(2)(A) and 26 CFR 301.7701(b)-4(a) fix the date. An investor who adjusts status inside the United States begins on the day USCIS approves the application; one who receives the immigrant visa abroad begins on the first day of physical presence in the United States after receiving the green card. Either way, if the same person also meets the substantial presence test for that year, the date moves back to the earlier of the two, usually the first day present in the country that January. Up to 10 days of presence can be disregarded under 7701(b)(2)(C) and 26 CFR 301.7701(b)-4(c)(1), but only for the substantial presence test and only where a foreign tax home and a closer connection are shown. Income before the date is taxed as a nonresident and income after it as a resident, with the split year computed under 26 CFR 1.871-13.

Governed by 26 U.S.C. 7701(b)(2)(A) and (b)(2)(C); 26 CFR 301.7701(b)-4(a) and (c)(1), with the split year computation at 26 CFR 1.871-13; IRS page Residency starting and ending dates, last updated 14 March 2026. The regulation and the statute are good for the three rules and for the 10 day de minimis allowance but say nothing about adjustment of status or consular entry; only the IRS page ties the green card test date to the USCIS approval date for an adjustment and to the first day of physical presence after an immigrant visa is issued abroad.

Where this is explained properly

Pages here that go into residency starting date rather than mentioning it.

Related terms

Substantial presence testThe substantial presence test is the day count at 26 U.S.C. 7701(b)(3) that makes a foreign national a United States resident for income tax purposes: at least 31 days of presence in the current year, and 183 days across three years counting the current year in full, one third of the first preceding year and one sixth of the second. No green card is needed to meet it.
Worldwide incomeWorldwide income is the rule that a United States resident for tax purposes, including a green card holder whose residence is still conditional, is taxed on income from every source anywhere in the world and not only on income arising inside the United States.
Nonresident alien and resident alienResident alien and nonresident alien are the two United States income tax statuses a non-citizen can hold: a resident alien is taxed on worldwide income and files Form 1040, while a nonresident alien files Form 1040-NR and is taxed only on income effectively connected with a United States business and on United States source passive income.
Adjustment of statusAdjustment of status is the process under 8 U.S.C. 1255 by which someone already in the United States becomes a permanent resident without leaving, on Form I-485, instead of collecting an immigrant visa at a consulate abroad. An EB-5 investor who adjusts is granted conditional permanent residence for two years, the same status a consular applicant receives on admission.
Consular processingConsular processing is the route to permanent residence through a US embassy or consulate abroad, on Form DS-260 and an interview, rather than by adjusting status inside the United States. It is the only route for an investor who stays outside the country, and it is open by choice to one already inside.

Checked against primary sources on 10 August 2026. Back to the glossary