What does residency status mean

This classification depends on where the person resides and does not focus on citizenship. For example, many individuals live in one state but have a business or other income sources in another state.

In that case, they may have to file two tax returns —a resident return in one state and a non-resident return in the state where they work.

Typically, a non-resident only has to file a state return if they earn income there. A snowbird escapes Chicago during the frigid winter months to a vacation home in Houston may not need to file taxes in Houston, if they were only present for a short time and earned no income.

However, certain types of income are taxable, even if you do not live or work in that state. A taxpayer may find that they owe taxes to the government through income such as:. In some cases, a non-resident may have to pay more to go to college in a state where they do not primarily reside.

Most states have exemptions for students who attend college out-of-state, classifying these students as residents of their home states.

Generally, a taxpayer can only be a resident of one state. In a situation whereby an individual spends considerable time in two states, they must file a tax return as a resident of one state and a non-resident of the other.

Two states cannot tax the same income by law, as each state must exempt from taxation all earnings and other sources of income that were taxed elsewhere.

The qualifications for residency vary depending on the jurisdiction and the service for which you are exercising residency. Here are some examples:. In some states, you can register to vote as soon as you establish a residence in that state. Other states have residency requirements of up to 30 days, although the Supreme Court has clamped down on longer requirements. Most state universities offer lower tuition to in-state students than those from another state.

For example, you can study at the world-class University of California for a fraction of the price, as long as you spend a year in California first. Residency requirements vary from state to state: Alaska requires 24 months, but Arkansas only requires six. Many people with multiple homes seek to claim residence in the state with the most advantageous tax rates. This can be complicated since each state has different residency requirements. Most states use the so-called "days" rule, whereby you may be considered a resident if you spend more than half a year in that state.

Others have more complicated criteria. In a worst-case scenario, it's possible to be taxed as a resident in two states at once, so it's worth spending some time to research the tax residency rules by state. As an example of non-resident determination, imagine a person who lives in New Jersey but works in New York. That person would have to file two state tax returns: one for the state of residence, and one for their income in New York.

For another example, consider someone with a home in New York, and a summer home in Florida. Since Florida does not have an income tax, it makes sense for that person to file their state taxes as a Florida resident. However, New York considers anyone with a "place of abode" in New York to be a potential resident, and will attempt to claim income tax from them. The only way to reliably escape New York residency is to spend less than thirty days in New York.

A non-resident alien is a foreigner who does not have a legal residency or a substantial presence in the United States, such as seasonal workers, visiting businesspeople, or those who commute across the border from Canada or Mexico. If you do not have a green card, the Internal Revenue Service determines the residency based on the substantial presence test. If you do not reside in the United States, you are still required to file a tax return if you have income in the U.

Non-residents file on form NR. To meet this test, you must be physically present in the United States U. A non-resident is someone who does not domicile in a given region but has a business or other interests in that region.

Residency requirements vary by state and jurisdiction. To check if you are considered a non-resident of a given state, read the tax residency rules by state. Residency is a bit more complicated for aliens visiting the United States.

According to the IRS, you are considered a resident if you have a permanent residence permit green card or if you pass the " substantial presence test. To determine if you pass the substantial presence test, take the number of days you were physically present in the US over the past year, plus one-third of the number of days you were in the US last year, plus one-sixth of the days the year before that.

Sponsored by a family member who is a refugee If you were sponsored into New Zealand by someone in your family who was a refugee at the time you were sponsored, you're automatically considered to be holding a residence class visa.

In general terms, a Protected Person is someone who: under the Convention Against Torture, there are substantial grounds for believing that he or she would be in danger of being subjected to torture if deported from New Zealand or; under the Covenant on Civil and Political Rights, there are substantial grounds for believing that he or she would be in danger of being subjected to arbitrary deprivation of life or cruel treatment if deported from New Zealand.

Sponsored by a family member who holds Protected Person status If you were sponsored into New Zealand by someone in your family who was a protected person at the time you were sponsored, you're automatically considered to be holding a residence class visa.

United Kingdom citizens United Kingdom UK citizens who arrived in New Zealand before 4 April are automatically considered to be holding a residence class visa.

All other UK citizens must meet New Zealand citizenship or residency criteria. Related Residency requirements. They could spend around five years on a waiting list before being allowed to enter or remain in the United States or get a green card though wait times have been less in recent years. Permanent residents remain citizens of another country. So every time you travel outside the United States, you must carry the passport of that country with you, as well as your U.

You will use your green card to reenter the United States. There are important limitations on lawful permanent residents' rights. You do not have any rights to vote in U.

If you leave the United States with the intention of making your home elsewhere, you will be considered to have abandoned your residence and given up your green card. Contrary to popular myth, you can abandon your residence in as little as one day, based on your intentions upon departure.

However, it's true that immigration authorities will take an especially close look if you spend more than six months outside the United States. And if you spend more than a year outside the United States, the authorities will definitely presume that you have abandoned your residence.

You will have an uphill battle convincing them otherwise. If you plan to leave the U. Upon return from foreign travel, you will be subject to the same grounds of inadmissibility as you faced when you first got the green card. So, for instance, if you have been receiving financial-need based government assistance or welfare, you could be excluded at the border as a public charge.

Another important limitation on lawful permanent residents is that they are subject to the grounds of deportability.

If you commit certain crimes or security violations, or even fail to advise USCIS of your changes of address, you can be placed in removal proceedings and deported from the United States. After a certain length of time five years in most cases permanent residents who have shown good moral character and can speak, read, and write English and pass an exam on U. Citizenship is the highest immigration status available in the United States and offers many benefits.