Tax Residency in the USA: What Every Brazilian Needs to Know

Logic Accounting July 2, 2025

If you are Brazilian and own business or live in the United States, understanding your tax residency status It's essential to avoid mistakes with the IRS (American Internal Revenue Service) — and also to legally save on taxes.

In this article, we will explain:

  • What is tax residency in the US?

  • Who is considered a tax resident?

  • What are the rules of the Substantial Presence Test?

  • Differences between tax residents and non-residents.

  • How Brazilians should file correctly

  • And the essential role of a specialized accountant.

🇺🇸 What is tax residency in the US?

Tax residency is the status that determines where you should pay taxes. and how you should declare your income. In the US, it depends not only on where you live — but also on... how long you stay in the country and from nature of your income.

You could be considered:

  • Tax resident (tax resident)

  • Non-resident for tax purposes (non-resident alien)

This definition directly impacts how you declare your income, and which taxes do I have to pay to the American government.

Substantive Presence Test: The Rule of Days

The most common criterion for determining if you are a tax resident in the US is... Substantive Presence Test, Based on the amount of time you spent in the country:

You will be considered a tax resident if:

  • I was in the USA for 183 days or more in the last 3 years, adding them up:

    • Every day of the current year

    • 1/3 of the days from the previous year

    • 1/6 of the days of the year before last

🔍 Example:
If you stayed 120 days in 2024, 120 in 2023, and 120 in 2022:
→ 120 + (120/3) + (120/6) = 120 + 40 + 20 = 180 days → Non-resident for tax purposes
→ If there were 130 in 2024, the total would be 190 → Would you be a tax resident?

 Difference between tax resident and non-resident

Feature Tax Resident Non-Resident for Tax Purposes
Do you file taxes in the US? Yes, about the global income Yes, only about income in the US
Declare using form Form 1040 Form 1040NR
Are you entitled to deductions? Yes Limited
Is it subject to double taxation? Yes, but with the possibility of agreements. Yes, with fewer benefits.

In these cases, there may be double taxation, and that's why it's essential to have international tax planning. Brazil and the US do not have a formal double taxation agreement, but it is possible to use legal strategies to avoid paying tax twice.

Why hire a specialized accountant?

Dealing with American tax rules, even as an immigrant or investor, requires care. A specialized accountant can:

✅ Correctly assess your residency status.
✅ Choose the correct form (1040 or 1040NR)
✅ Optimize your tax burden
✅ Ensure compliance with the IRS
✅ Avoid penalties for incorrect declarations

How can Logic help you?

In Logic Business Consulting, We have professionals prepared to assist Brazilians with business or tax ties in the USA.
We offer:

  • Support with filing US income tax returns.

  • Opening American companies

  • International tax planning

  • Bookkeeping and reporting required by the IRS.

Talk to us and have the security to declare and expand with peace of mind.

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