For people relocating from the Philippines to the United States

Moving to the US From The Philippines: Your First US Tax Year

Relocating from the Philippines? The US decides tax residence by its own tests, your first year is usually split in two, and the US-Philippines treaty settles dual residence. Here is how each piece works.

Substantial presenceGreen card testDual-status yearTie-breakerSocial security

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Quick answer

When does someone moving from the Philippines 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 the Philippines, Article 3 (Fiscal 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 3 (Fiscal Residence)
Social security agreement: None on the SSA list
Accounts in the Philippines: FBAR, Form 8938 and PFIC rules can apply once resident

Arriving from the Philippines: 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 the Philippines 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.

Dual residence with the Philippines

The US tests in Pub 519 do not override a treaty's own residence rules (IRS Pub 519). For people moving from the Philippines: Article 3 (Fiscal Residence) of the treaty has the tie-breaker for someone resident in both countries: it looks first at where you have a permanent home available, then at the further tests the article lists, in the order it sets them. A US return that relies on the tie-breaker needs Form 8833 (IRS), and long-term green card holders should check the section 877A consequences first.

Your dual-status first year

Your first US year is usually split. Before your residency starting date you are a nonresident, taxed only on US income; from that date you are a resident, taxed on worldwide income, including anything earned in the Philippines after the date. This is a dual-status year (IRS Pub 519).

Under the substantial presence test, the starting date is generally your first day in the US that year; up to 10 days can be ignored if you kept a closer connection and tax home abroad.
Under the green card test, it is the first day you are in the US as a permanent resident.
If you arrive late in the year and miss both tests, the first-year choice can let you be treated as resident for part of it: 31 days in a row in the US and presence on 75% of the days from then to year end, and you must meet the substantial presence test the following year.

Reporting what you keep abroad

Do not close everything in the Philippines in a hurry, and do not forget it either. As a US resident you report foreign accounts on the FBAR and Form 8938 when they pass the thresholds, and many investment funds bought in the Philippines fall under the PFIC rules (IRS). Details: FBAR and FATCA; Form 8938.

Where these rules come from

Treaty

The IRS lists the 1976 income tax treaty. General effective date (IRS Table 3): treaty Jan. 1, 1983 (IRS treaty documents for Philippines; treaty text; IRS Table 3).
Residence and tie-breaker: Article 3 (Fiscal Residence).
Saving clause: Article 6 (General Rules of Taxation).
Article 18 (Private Pensions and Annuities) and Article 19 (Social Security Payments), pensions.
Article 23 (Relief from Double Taxation), relief from double taxation.
Article 16 (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 the Philippines 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 the Philippines. Every engagement starts with a written quote after we review your dates and income. Also see Form 1040-NR.

Moving from other countries

All countries: moving to the US, by country. From Canada: moving from Canada to the US.

Common questions

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

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 the Philippines and the US?

Article 3 (Fiscal Residence) of the treaty breaks the tie, starting with where you have a permanent home. Claiming treaty residence in the Philippines on a US return needs Form 8833.

Do I report my accounts in the Philippines 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 the Philippines?

No, the Philippines 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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