Taxpayer Data, Residency and Special Filing Situations

The information a preparer gathers before the return is built: prior-year carryovers, residency status for aliens, ITINs and IP PINs, IRS notices, the kiddie tax, premium tax credit data and special filings such as injured spouse claims. The SEE tests whether you spot the fact that changes how, or whether, a return is filed.

Preliminary Work and Taxpayer Data6 min read7 sections

Must-know for the exam

Green card test: an alien is a resident if a lawful permanent resident at any time in the calendar year (IRC 7701(b)(1)(A)(i); Pub. 519 (2025)).
Substantial presence: at least 31 days this year and 183 weighted days, counting all current days, one-third of last year and one-sixth of the year before (IRC 7701(b)(3)(A)).
F, J, M or Q students are exempt individuals unless exempt as students in more than 5 calendar years; teachers and trainees, 2 of the prior 6 (IRC 7701(b)(5)).
A dual-status alien cannot take the standard deduction or file as head of household, and files jointly only by election (Treas. Reg. 1.6012-1(b)(2); Pub. 519 (2025)).
An ITIN not used on a federal return for three consecutive years expires December 31 of the third year (IRC 6109(i)(3); Form W-7 instructions).
The EIC requires an SSN valid for employment; an ITIN filer cannot claim it (IRC 32(m); Pub. 596 (2025)).
Kiddie tax for 2025 applies to unearned income over $2,700; the first $1,350 is covered by the standard deduction (IRC 1(g); Rev. Proc. 2024-40 sec. 3.02).
Form 8814 parent election: child's income only interest and dividends, gross income over $1,350 and under $13,500 for 2025 (IRC 1(g)(7); Rev. Proc. 2024-40 sec. 3.02).
Premium tax credit household income is the MAGI of taxpayer, spouse and dependents required to file; married couples generally must file jointly (IRC 36B(c)(1)(C), (d)(2)).
Injured spouse uses Form 8379 to recover her share of an offset joint refund; innocent spouse relief is Form 8857 (IRC 6402(c); Form 8379 instructions).

On this page · 7 sections

Traps that cost marks

Mixing the green card test with the day-count test.
Computing the 183-day total and forgetting the 31-day minimum in the current year.
Counting a student's days toward the 183-day test during the first five calendar years.
Applying the student's five-year rule to teachers.
Using Form 8843, which covers exempt individuals, instead of Form 8840.
Assuming a dual-status taxpayer files like a full-year resident or a full-year nonresident.
Thinking ITINs expire on a fixed calendar cycle regardless of use.
Assuming an ITIN holder cannot claim any credit.

Why it matters on the exam

Before any income is reported, the preparer must confirm who the taxpayer is for tax purposes: a resident or nonresident, with a valid identification number, with carryovers from last year and with any open IRS issue. Domain 1 items test these intake decisions with short fact patterns and form-number recall.

The common pattern is a single disqualifying fact: 25 days of presence, wages on a child's return, an ITIN on an EIC claim.

Resident or nonresident alien

A resident alien reports worldwide income on Form 1040, like a citizen. A nonresident alien reports only US-source income and income effectively connected with a US business, on Form 1040-NR (IRC 871; Pub. 519 (2025)).

Green card at any time in 2025? — Yes: resident. An application alone does not count.
At least 31 days present in 2025? — No: not a resident under substantial presence.
Weighted days of 183 or more? — All 2025 days + 1/3 of 2024 days + 1/6 of 2023 days. Exempt-individual days are left out.
Exception claimed? — Closer connection on Form 8840 needs fewer than 183 days in 2025 and a foreign tax home.

Residency tests. IRC 7701(b); Pub. 519 (2025).

Example from the bank's pattern: 130 days in 2025, 120 in 2024 and 150 in 2023 give 130 + 40 + 25 = 195 weighted days, so the test is met.

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Preliminary Work and Taxpayer Data