Resident Alien

Who is a resident alien?

A Resident Alien is a non-U.S. citizen who has been granted the right to live and work in the United States on a permanent or long-term basis. This is typically done through the process of obtaining a green card, which grants legal permanent residence status to the individual.

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Resident Aliens are also known as “Lawful Permanent Residents” or “Green Card Holders.” They are subject to most of the same taxes and regulations as U.S. citizens, but may have different requirements for voting, running for office, and obtaining certain government benefits. They may also be subject to different rules regarding international travel and dual citizenship.

What is the process of becoming a resident alien?

The process of becoming a Resident Alien, also known as obtaining a green card, typically involves several steps, which can include:

1. Finding an eligible category: The first step in obtaining a green card is to find an eligible category that applies to the individual. This can include categories such as employment-based, family-based, or humanitarian-based immigration.
2. Filing a petition: The next step is to file a petition with the U.S. Citizenship and Immigration Services (USCIS) or the Department of Labor (DOL) depending on the category. The petition must include all the required documentation and information to prove the individual’s eligibility.
3. Waiting for a decision: After the petition is filed, the individual must wait for a decision from USCIS or DOL. This can take several months, or even years, depending on the category and the individual’s circumstances.
4. Applying for a green card: If the petition is approved, the individual can then apply for a green card. This typically involves submitting additional documentation, such as biometric information and a medical examination, and paying the required fees.
5. Interview: Some cases may require an interview with a USCIS officer, where the individual will have to answer questions about their background, education and qualifications.
6. Waiting for a green card: After the application is submitted, the individual must wait for the green card to be issued. This can take several months, or even years, depending on the category and the individual’s circumstances.
7. Biometric services: After the application is approved and the individual will be notified to go to a ASC (Application Support Center) to provide biometric information like fingerprints, photos and signatures.
8. Getting the green card: Once the green card is issued, the individual can then use it to live and work in the United States on a permanent or long-term basis.

What are the pros and cons of being a resident alien?

Being a Resident Alien (also known as a green card holder) can have both advantages and disadvantages.

Here are some of the pros and cons of being a Resident Alien:

Pros:

1. Legal permanent residence: Resident aliens have the legal right to live and work in the United States on a permanent or long-term basis.
2. Eligibility for benefits: Resident aliens are eligible for certain benefits such as social security, Medicaid, and food stamps.
3. Path to citizenship: Resident aliens can apply for U.S. citizenship after a certain period of time, usually five years, if they meet certain requirements.
4. Ability to sponsor family members: Resident aliens can sponsor certain family members to come to the United States.
5. Travel: Resident aliens can travel outside the U.S. and return without any problems, while non-resident aliens may face more restrictions.
6. Protection from deportation: Resident aliens are protected from deportation as long as they comply with the terms of their green card.

Cons:

1. Limited voting rights: Resident aliens can vote only in local and state elections, but not in federal elections.
2. Limited eligibility for certain benefits: Resident aliens may be ineligible for certain benefits such as Federal student aid and certain public welfare benefits.
3. Risk of losing status: Resident aliens can lose their status if they violate the terms of their green card, such as committing a serious crime.
4. Additional taxes: Resident aliens are subject to U.S. taxes on their worldwide income and may also be subject to taxes in their home country.
5. Complex process: The process of becoming a resident alien can be complex and time-consuming, and is subject to change due to immigration laws and policies.
6. Expensive: The process of obtaining a green card can be expensive, and the application fee, lawyer fees and other expenses can add up quickly.

Resident alien vs. non-resident alien

A resident alien is a non-U.S. citizen who meets specific IRS or immigration criteria to live and work legally in the United States. In contrast, a non-resident alien is someone who resides in the U.S. temporarily and fails the residency tests.

Criteria	Resident Alien	Non-Resident Alien
Green Card Holder	Yes	No
Substantial Presence Test	Must pass	Usually doesn’t pass
Tax Obligations	Taxed on worldwide income	Taxed only on U.S.-sourced income
Work Authorization	Legally authorized to work in the U.S.	Work rights may be restricted
Documentation	Holds a Resident Alien Card (Green Card)	May hold visa types such as F-1 and J-1, etc.

Understanding the difference helps HR departments determine correct tax withholdings and employment eligibility for international employees.

Who is considered a resident alien?

An individual qualifies as a resident alien for tax or employment purposes under two conditions:

1. Green card test: The person holds a Green Card (Form I-551), which allows for lawful permanent residence.
   
2. Substantial presence test: The individual has been physically present in the U.S. for:
   
   • 31 days during the current year, and
   • 183 days during the last 3 years (using a specific IRS formula).
     

This classification is crucial for HR teams when onboarding international talent, especially regarding employment verification and payroll setup.

What are the responsibilities of a resident alien?

Resident aliens have many of the same responsibilities as U.S. citizens, particularly in workplace and tax matters. Some key obligations include:

• Filing tax returns: Must file Form 1040 and report global income.
  
• Social security and medicare taxes: Resident aliens are generally subject to the same payroll tax deductions.
  
• Employment compliance: Must provide valid work authorization documents like the Resident Alien Card for Form I-9 verification.
  
• Change notifications: Required to update the USCIS and HR if their immigration or employment status changes.
  

For HR teams, ensuring resident aliens fulfill these responsibilities helps avoid legal and financial complications.

Compliance issues for resident aliens

HR departments need to be especially cautious with compliance requirements when hiring or managing resident aliens:

• I-9 Verification: HR must collect and retain proper documentation (e.g., Resident Alien Card) to verify employment eligibility.
  
• Tax withholding: Resident aliens are treated like U.S. citizens for federal tax purposes—incorrect classification can lead to IRS penalties.
  
• Benefit eligibility: Some resident aliens may be eligible for company benefits; however, eligibility must be confirmed based on employment status and tenure.
  
• Work authorization monitoring: Employers should track expiration dates of work authorization documents to avoid unintentional violations.