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What Is Permanent Resident Alien In U.S.? - The Detail Guide

What Is Permanent Resident Alien In U.S.? – The Detail Guide

Amanda Byford
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What is a Permanent Resident Alien?

A foreign-born American resident who is not a U.S. citizen is a resident alien. 

A resident alien is someone who is a permanent resident alien or a lawful permanent resident, meaning they are considered an immigrant who has been legally and lawfully recorded as a resident of this country. 

To be a resident alien they must have a green card or pass a substantial presence test.

More about Resident Alien

A resident alien even though a foreign person is a permanent resident of the country in which they stay they do not have citizenship.  

In the United States of America for a person to fall under this classification they need to have a green card in the current or in the previous calendar year. 

Or if they pass the substantial presence test they fall under the U.S. classification of resident aliens. 

For that, during the current year, they must have been in the United States for more than 31 days, along with at least 183 days over a three-year period, including the current year.

Types of the Resident Alien as per the (USCIS)

I - Permanent Resident:

who has been given the lawful and legal right by the government of the United States to live in the country?

II - Conditional Resident:

A person receives a green card for two-year, this is applicable to people who have applied for residency based on marriage or because they are entrepreneurs. 

And 90 days before the green card expires the person must apply to have the conditions removed, or the permanent resident status will be canceled.

III - Returning Resident:

Any lawful permanent resident who has been outside the country and is returning to the U.S. 

They are also known as a special immigrant, and if they have been outside the U.S. for more than 180 days they must apply for readmission.

There are differences between the three types are: foreign tax credits can be used by a resident alien, while a non-resident cannot use them. 

All taxes that a U.S. citizen pays is applicable to a resident alien as well, whereas a non-resident alien needs to pay tax only on domestic income that is generated within the United States, excluding the capital gains.

Resident aliens should report worldwide income from sources both within and outside the country by using form 1040 to report income. on the other hand, by using Form 1040NR or Form 1040NR-EZ the non-resident aliens must report domestic income.

Special Considerations

In situations where a person is present in the United States for government-related matter or when a student or teacher is present in the United States for the time being then, they can think about exemptions from resident alien status, in like the above situations a person does not need to show compliance with the green card test or the substantial presence test.

Depending on the situation, the exempt aliens can, file for a correction of status, which is a process that allows them to remain in the country and to apply to become a permanent resident with resident alien status. 

The Difference Between a Permanent Resident and a Resident Alien

A permanent resident means they have the right to work in the country for most employers or for themselves. Permanent residents continue to have citizenship in another country.

A lawful permanent resident is granted the right to live in the United States permanently. Permanent residents are given a green card, which is a photo ID card to proves their status.

Many foreign students come and work holding an H1B holder, this does not mean that they have lawful US permanent residence, so according to the USCIS, they are not resident aliens.

For tax purposes, an individual is classified as a resident alien if they either have the green card or the substantial presence test for the calendar year. 

An individual needs to either have a current green card or have had one in the previous calendar year for the green card test. 

For the substantial presence test, during the current year that person should have been in the U.S. for more than 31 days and during a three-year period for a duration of 183 days including the current year and the two years prior.

Conclusion

A foreign-born, non-American citizen who lives in the U.S. is a resident alien. These resident aliens must either have a green card or clear a substantial presence test. Usually, a resident alien pays the same taxes that a U.S. citizen does.

According to the records of The U.S. Department of Homeland Security they admitted 1,031,765 million new permanent residents in 2019.

Amanda Byford

Amanda Byford has bought and sold many houses in the past fifteen years and is actively managing an income property portfolio consisting of multi-family properties. During the buying and selling of these properties, she has gone through several different mortgage loan transactions. This experience and knowledge have helped her develop an avenue to guide consumers to their best available option by comparing lenders through the Compare Closing business.

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