For people relocating from China to the United States

Moving to the US From China: Your First US Tax Year

Before your first US tax return after leaving China, three questions matter: when you became resident, whether the treaty makes you resident somewhere else, and what to report from China.

Substantial presenceGreen card testDual-status yearTie-breakerSocial security

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Quick answer

When does someone moving from China start paying US tax on worldwide income?

From the residency starting date: the first day in the US in a year you meet the substantial presence test, or the first day as a permanent resident under the green card test (IRS Pub 519). Before that you are a nonresident, so the first year is usually dual-status. If you are also resident in China, Article 4 (Residence) of the treaty decides which country you are resident in for treaty purposes.

Prepared by Illuminous Accounting · Sources checked November 11, 2026

At a glance

When you become US resident: Green card test or substantial presence test (Code section 7701(b))
First year: Usually dual-status: nonresident, then resident
Treaty tie-breaker: Article 4 (Residence) (decided by the two tax authorities)
Social security agreement: None on the SSA list
Accounts in China: FBAR, Form 8938 and PFIC rules can apply once resident

Arriving from China: which test applies

There is no form that makes you a US tax resident. It happens automatically under Code section 7701(b) once you pass either test (IRS Pub 519). A green card does it from the first day you are in the US with permanent resident status. Without one, the substantial presence test does it once you have 31 days this year and 183 weighted days over three years.

Someone arriving from China with no earlier US days needs to arrive by early July and stay for the rest of the year to pass the substantial presence test in the first year. The calculator shows the date for your arrival.

The first US return after China

The first US return after leaving China is rarely a normal one.

Situation	What applies
Arrived mid-year and passed a test	Dual-status year: nonresident before the residency starting date, resident after it
Arrived late and passed neither test	Nonresident for the year, unless the first-year choice applies (31 consecutive days and 75% presence, plus the substantial presence test next year)
Married to someone still in China	Special rules let some couples choose to file as residents for the whole year

Source: IRS Pub 519. See also first-year green card tax.

The treaty tie-breaker

Under Article 4 (Residence) paragraph 2 of the US-China treaty, an individual resident in both countries does not go through the usual permanent-home tests; the competent authorities of the two countries decide by consultation.

Point	What it means
Who uses it	People resident in both China and the US under each country's own rules, typically in the year of the move
How it is claimed	Form 8833 with the US return, under Treas. Reg. section 301.7701(b)-7 (IRS)
Risk for green card holders	Long-term residents may be treated as expatriated under section 877A

Accounts left in China

Keeping a Chinese bank account or pension after the move is normal, but from your residency starting date the US wants to know about it. The reports are the FBAR, Form 8938 and, for many non-US funds, the PFIC rules on Form 8621 (IRS). Thresholds and deadlines: FBAR and FATCA, Form 8938.

Where these rules come from

Treaty

The IRS lists the 1984 income tax treaty, signed April 30, 1984. General effective date (IRS Table 3): treaty Jan. 1, 1987 (IRS treaty documents for China; treaty text; IRS Table 3).
Residence and tie-breaker: Article 4 (Residence).
Article 17 (Pensions and Annuities) and Article 18 (Government Employees and Pensions), pensions.
Article 22 (Elimination of Double Taxation), relief from double taxation.
Article 14 (Dependent Personal Services), employment income.

US law

US residency tests and starting dates: Code section 7701(b) (IRS Pub 519).
Treaty residence for dual residents: Treas. Reg. section 301.7701(b)-7, Form 8833 and section 6114; long-term residents: section 877A (IRS Form 8833).
Social security agreements: SSA list.

The rules of China on leaving the country also apply; check them with a local adviser.

How we help

Gurleen Kaur, CPA licensed in British Columbia and Washington State, prepares the first-year dual-status return, treaty disclosures and the reporting for accounts left in China. Every engagement starts with a written quote after we review your dates and income. Also see Form 1040-NR.

Common questions

Am I a US tax resident in my first year after leaving China?

When you meet the green card test or the substantial presence test (31 days this year and 183 weighted days over three years). Your residency starting date is generally your first day in the US that year, or your first day as a permanent resident.

What if I am resident in both China and the US?

The US-China treaty leaves dual residence of individuals to the two tax authorities to decide by consultation, under Article 4 paragraph 2.

Do I report my accounts in China after moving to the US?

Once you are a US resident, yes: the FBAR when foreign accounts total more than US$10,000, Form 8938 above higher thresholds, and PFIC rules for many foreign funds.

Is there a US social security agreement with China?

No, China is not on the SSA list of agreement countries.

Sources

Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.

Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 11, 2026. This page is general information, not tax or legal advice for your situation.

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