What is considered American tax residency, and how does it affect me?

American tax residency is primarily determined by the 'Substantial Presence Test' or by being a U.S. citizen. If you meet the criteria outlined by the Internal Revenue Service (IRS), you may be considered a U.S. tax resident, regardless of your citizenship or place of residence. Being an American tax resident subjects you to U.S. tax laws and reporting requirements on your worldwide income.