183-Day Rule

AAA

DEFINITION of '183-Day Rule'

The 183-day rule is part of the "substantial presence test" used by the Internal Revenue Service to determine if a person, who is a dual taxpayer, will have to pay taxes in the United States. It is commonly used by aliens to establish residency in the United States. The determining factor is whether the number of days on which the person was present in the United States exceeds 183 days.

INVESTOPEDIA EXPLAINS '183-Day Rule'

The United States has tax treaties with other countries that contain a provision for resolution of conflicting claims of residence. The Internal Revenue Code section that contains the definition of the "substantial presence test" and the relevant multiplier is 26 IRC 7701(b)(3)(A)(ii).

RELATED TERMS
  1. IRS Publication 597

    A document published by the Internal Revenue Service (IRS) that ...
  2. IRS Publication 513

    A document published by the Internal Revenue Service that details ...
  3. IRS Publication 515

    A document published by the Internal Revenue Service that provides ...
  4. Physical-Presence Test

    Similar to the bona fide foreign residence test, the physical-presence ...
  5. Dual-Status Taxpayer

    A taxpayer that has met the criteria to be both a resident and ...
  6. Alien

    Any person who is not a citizen of the country in which he or ...
Related Articles
  1. Federal Tax Brackets
    Taxes

    Federal Tax Brackets

  2. 7 Secret Fees Cutting Into Your Travel ...
    Budgeting

    7 Secret Fees Cutting Into Your Travel ...

  3. How The IRS Works: Functions & Audits
    Taxes

    How The IRS Works: Functions & Audits

  4. The Government And Risk: A Love-Hate ...
    Insurance

    The Government And Risk: A Love-Hate ...

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center