The Residency Summary section in Calculus questionnaire provides foreign nationals with a clear explanation of how their residency status for tax purposes has been determined.
This article outlines key details to help users navigate and understand this section.
Determination of Residency Status
The Residency Summary section is designed to show foreign nationals whether they meet the Green Card Test or substantial presence test (SPT) for US tax purposes. Here’s what they need to know:
Days Counted Towards the SPT:
The days countable for the Substantial Presence Test may not necessarily match the foreign nationals' actual days of physical presence in the United States for the listed tax years.
This discrepancy occurs because certain individuals may be exempt from counting days for SPT purposes.
Exemptions from SPT:
Individuals exempt from the SPT for the current tax year and/or particular previous years do not count their days of presence towards the test.
In such cases, the days listed may be "0" or marked as "Exempt" for those specific years.
Residency Starting Date:
Individual residency starting date (RSD) marks the point at which the foreign national is no longer considered an exempt individual for Substantial Presence Test purposes.
It is important to note that the RSD does not necessarily correspond to the date the individual becomes or became a resident for US tax purposes.
Typical RSD Scenario:
Generally, the residency starting date is set to the first of January of the year in which the individual is expected to meet the substantial presence test.
However, in some cases, it may be a mid-year date based on specific circumstances.
Understanding The Summary
1. Login to your Calculus account.
2. Head to the Users Tab > All Accounts and click anywhere on a user’s record.
3. A side panel will appear right side of the screen.
4. Under Account Details, click on the Edit button.
This will bring you to the Foreign National Questionnaire
5. On the left Progress Bar, click Residency Summary.
6. Administrators and Foreign Nationals will see a breakdown of how the individual residency status has been calculated for each relevant tax year. This includes details on days of presence, exemptions, and the determination of residency starting date.
Individuals are encouraged to review this summary carefully to ensure that their residency status has been accurately assessed.
If there are any questions or discrepancies, our team will share resources to help clarify residency status for tax purposes.