Generally, F-1 and J-1 students who have been in the U.S. for any part of more than five (5) consecutive calendar years are considered to be resident aliens for tax purposes. After such period, a student's days of presence in the US begin to be counted for purposes of determining whether an individual is a nonresident alien under the substantial presence test.

For example, a J-1 visa with the primary purpose of studying whose first visit to the U.S. in the fall of 2000 will be exempt from counting days for the first five calendar years. The student passes the substantial presence test in 2005. The student is considered a resident alien for tax purposes in 2005. See IRS Publication 519: US Tax Guide for Aliens for more information on the Substantial Presence Test.

All students who have been in the U.S. for any part of more than five calendar years will be treated as resident aliens for tax purposes in their sixth year. Generally, resident aliens for tax purposes cannot take advantage of tax treaty benefits through Indiana University. Individuals who wish to continue to be treated as nonresident aliens for tax purposes must provide IU with a written statement from the IRS substantiating their continued nonresident alien status. IRS approval of this extension is rare.