🇺🇸 Tax residency in United States

Triggering US tax residency is simpler than you think. Spend 183 days or more stateside, and bam. You're a resident for tax purposes. That's the headline figure. But it's not the whole story. The IRS also looks at your "centre of vital interests". This means where you have your strongest personal and economic ties. Think family, social connections, and where you keep your most important belongings. If you're just visiting for a few months, this usually isn't an issue. But if you're spending significant chunks of time here year after year, it starts to matter.

Even if you're under that 183-day mark, certain things can pull you into US tax residency. Owning or renting a home here is a big one. If you have a place you regularly use, it's a strong indicator. Having a spouse or dependents who are US citizens or residents also matters immensely. Think about it, where are your closest relationships? A registered business in the US is another red flag. Even if you're not actively running it day-to-day, its existence can point to US ties. These aren't automatic triggers, but they add weight to the IRS's assessment. They want to know where your life is truly centered.

What Worldwide Taxation Actually Costs

If you do trigger US tax residency, get ready for worldwide taxation. This means the IRS wants a piece of all your income, no matter where it's earned. For a digital nomad earning, say, $80,000 USD annually from remote work for a non-US company, the US tax bill can be substantial. You'll file Form 1040, reporting that $80,000. The US has a progressive tax system. Your top marginal rate could hit 37%†. So, on that $80k, you could owe upwards of $20,000 in federal taxes alone. State taxes are extra, often adding another 5-10% depending on where you're deemed resident. It's a significant chunk of change.

Navigating Special Regimes and Treaties

The US doesn't really have a "special regime" for digital nomads or expats in the way some other countries do. Citizens are taxed worldwide regardless of where they live. For non-citizens, triggering residency is the main event. There aren't specific programs that shelter remote workers from this reality once residency is established. However, tax treaties can help. The US has treaties with many countries, including the UK and Germany, to prevent double taxation. These treaties typically have tie-breaker rules. If you're a citizen of the UK or Germany and meet certain criteria, the treaty might stipulate you're not a US resident for tax purposes, even if you meet the day count. This usually hinges on having a "permanent home" available to you in your home country and no "centre of vital interests" in the US.

When an Accountant Becomes Necessary

Paying a local US accountant is often worth it if you're unsure about your residency status or have complex income sources. If you own property, have investments in multiple countries, or are close to the 183-day threshold, their expertise is invaluable. They can help you understand your obligations, claim foreign tax credits to avoid double taxation, and ensure you file correctly. This can save you thousands in taxes and penalties. Think of it as insurance against a costly mistake.

The simplest answer is: more than 183 days, and you likely have a US tax residency problem.

This is informational, not legal advice.