Green Card Test: How US Tax Residency Starts and Ends
In this guide
Quick answer: The green card test makes you a US tax resident if you were a lawful permanent resident at any time during the calendar year. You stay a resident for tax until you formally renounce the status in writing to USCIS, USCIS terminates it, or a federal court does. Residency start and end dates then follow separate IRS rules.
Many green card holders think their tax residency tracks their physical stay. It does not. A green card is enough, and it keeps you inside the US tax system, with worldwide income taxed, until it is formally ended. This guide covers the green card test, how start and end dates work and what the IRS expects when you leave. It pairs with our substantial presence test guide, which is the other route to residency.
What is the green card test?
You are a resident for US federal tax purposes if you are a lawful permanent resident of the US at any time during the calendar year. You generally have this status if USCIS issued you a Permanent Resident Card, Form I-551, known as a green card.
You continue to be a resident under this test unless:
- You voluntarily renounce and abandon the status in writing to USCIS.
- USCIS administratively terminates your immigrant status.
- A US federal court judicially terminates it.
For a US resident, the IRS says worldwide income is subject to US tax the same way as for a citizen.
When does your residency start?
| Situation | Residency starting date |
|---|---|
| Green card test only | The first day in the year you are present in the US as a lawful permanent resident |
| You receive the green card abroad | Your first day of physical presence in the US after receiving it |
| Both the green card test and the substantial presence test are met | The earlier of the first day you are in the US in the year you pass the substantial presence test, or the first day as a green card holder |
| You were a US resident in any part of the preceding year and are for any part of this year | The beginning of the current year |
What is the first-year choice?
If you meet neither test for the current year or the prior year, and did not choose residency for part of the prior year, but you meet the substantial presence test in the following year, you can attach a statement to your return choosing to be a resident for part of the current year. To make this first-year choice you must be present in the US at least 31 days in a row in the current year, and at least 75 percent of the days from the start of that 31-day period to the end of the year. You can treat up to 5 days of absence as presence for the 75 percent count. Days as an exempt individual do not count.
When does your residency end?
Under the green card test, your last day of presence as a lawful permanent resident is the end date for immigration purposes. For income tax, though, you remain a resident until you turn in your green card and renounce status, USCIS revokes it administratively, or a federal court revokes it judicially.
The IRS adds a warning: a green card holder for at least 8 of the last 15 years who ceases to be a lawful permanent resident may face special reporting and tax rules, called expatriation tax. We do not cover those rules here.
Under the substantial presence test, the general rule is that your residency ends on December 31 of the year you left. It ends on your last day of presence instead if, for the rest of the year, your tax home is in a foreign country and you keep a closer connection to it than to the US.
What must you file to show residency ended?
You must file a signed and dated statement with the IRS, made under penalties of perjury, to establish your residency termination date. Attach it to your income tax return. If you are not required to file a return, send it to the Department of the Treasury, Internal Revenue Service, Austin, Texas 73301-0215, on or before the due date for the return. It must include your name, address, taxpayer identification number if any, visa type and number if any, passport details, the tax year, your last day in the US that year and facts showing your foreign tax home and closer connection.
One trap: the following year
If you were a US resident for any part of the current year and also for any part of the following year, you are taxed as a US resident through the end of the current year. This applies whether or not you have a closer connection to a foreign country that year.
Common mistakes
- Assuming you stop being a tax resident when you leave the US while still holding a green card.
- Not filing the residency-termination statement.
- Forgetting the 8-of-15-years expatriation rules before giving up the card.
- Treating a green card received abroad as starting residency on the approval date.
Frequently asked questions
Can I be a resident by both tests in the same year?
Yes. The residency start date is then the earlier of the two start dates.
Does a closer connection to my home country end residency for a green card holder?
The IRS says you cannot claim the closer connection exception if you have taken steps to change your status to lawful permanent resident. See the closer connection exception.
What if I arrive or leave mid-year?
You may be a dual-status taxpayer. Read the dual-status tax year guide.
Key takeaways
- A green card makes you a US tax resident until it is formally ended.
- Residency start dates depend on when you are first present as a green card holder.
- Ending residency needs formal termination and a statement filed with the IRS.
Related guides
- The substantial presence test
- The dual-status tax year
- The closer connection exception
- Sailing permit and departing alien clearance
- Your first 90 days in a new country
This page is general information, not legal or tax advice. Last updated: October 2026.
Sources
Internal Revenue Service: U.S. tax residency, green card test; Residency starting and ending dates.