What Is an Aptitude Test?

An aptitude test is an exam used to determine an individual’s skill or propensity to succeed in a given activity. Aptitude tests assume that individuals have inherent strengths and weaknesses and have a natural inclination toward success or failure in specific areas based on their innate characteristics.

Aptitude tests are generally used for job placement, college program entry, and to help people to get an idea of where their interests and aptitudes can take them regarding careers.

Understanding Aptitude Tests

Aptitude tests can be used to determine your capabilities in a variety of subjects. For example, individuals may take an aptitude test to determine the careers that are a good match for their skills and interests. Similarly, high school students may take an aptitude test when thinking about what would be an appropriate college major or whether college is the best choice for them.

In general, aptitude tests measure one’s competence in logical reasoning, numerical skills, or verbal ability; competency can be evaluated through problem-solving tasks and testing one’s critical thinking across various contexts.

When You Might Take an Aptitude Test

Some schools administer aptitude tests to students beginning in elementary school. Combined with intelligence and achievement tests that measure student mastery of academic content, aptitude tests may be used to determine placement in gifted and talented programs or other specific educational tracks.

Language Aptitudes

For example, the Modern Language Aptitude Test (MLAT) measures a student’s potential for successfully mastering foreign languages. Aptitude tests can also help determine if a student needs special education services.

Older Students

For older students, Differential Aptitude Tests (DATs) assess a range of aptitudes from spatial relations to language usage. The results can help administrators make curricular recommendations.

Curriculum Guidance

Counselors might use high scores in mechanical reasoning tests to guide students toward courses that prepare them for engineering or designing studies in college. For instance, students who score well in tests measuring speed, accuracy, and problem-solving might choose coursework in computer science, finance, or other fields requiring attention to detail.

Hiring Decisions

Some companies use aptitude tests to help them make hiring decisions. These tests, called career assessment tests, help human resources (HR) personnel learn more about a prospective employee’s strengths and weaknesses. Career assessment tests may also be used within a company to make promotion decisions.

Situational judgment tests are a specific kind of career aptitude test that can help predict how an employee might respond to specific situations in the workplace. They are also used to assess an employee’s communication style and ability to work within a team.

Some situational judgment tests focus specifically on customer service careers. These tests analyze personality traits predictive of successful public interaction, such as empathy, diplomacy, and patience. Situational judgment tests may also be used to predict future competency in sales-related careers.

Types of Aptitude Tests

Many types of aptitude tests are taken for educational or career discovery and ability purposes. The most common aptitude tests are:

• Mechanical reasoning: These types test your knowledge of physical concepts and are generally used to evaluate you for technical positions.
• Situational judgment: These tests gauge your reactions to situations and your decision-making.
• Diagrammatic/spatial reasoning: These tests see how well you can reach a conclusion based on processes contained in diagrams.
• Abstract reasoning: These measure problem-solving abilities and identify relationships between abstract arrays.
• Numerical reasoning: In these tests, your abilities with numbers, math, and data are tested.
• Verbal reasoning: Your language, reading comprehension, and vocabulary are tested in these types.
• Inductive reasoning: Under the pressure of time, these tests see how well you analyze patterns and data.
• Logical reasoning: Logical reasoning tests measure how well you recognize patterns and sequences and identify relationships between objects.
• Clerical aptitude: Clerical tests measure how fast and accurate you can be, seeing how well you can concentrate.

How to Pass an Aptitude Test

You might have heard that you can’t prepare for an aptitude test, but nothing could be further from the truth. Study guides and practice aptitude tests are readily available online and in community or high school libraries.

Conduct an online search for the type of test you’ll be taking. You’ll find many guides that offer tips on subjects you can read about and practice tests. Once you’ve found the practice tests and some study material:

• Practice the test daily: Practicing every day gives you continuous exposure to the questions and answers and helps you identify weak spots.
• Learn the test format: Remembering the format helps you move through the test. It also allows you to identify areas you need to work on.
• Carefully read the instructions: When you take the test, don’t dive into it. Instead, read all instructions and ensure you understand them, so you don’t work through a section giving wrong answers.
• Manage your testing time: Answer the questions you know first. Then, go back and work on the more challenging questions.

The Bottom Line

An aptitude test is a measure of your ability to learn or perform required tasks and succeed in the environment you’re in. They are not a measure of intelligence—these tests look for your strengths and weaknesses, giving you and the evaluator an idea of your abilities.

Most aptitude tests can indicate success in education and a career, but they are not always 100% accurate predictions. For example, it is possible to score very low on an aptitude test for a specific job and be successful with hard work and dedication—the test may have merely taken a snapshot of your knowledge and abilities at a point where you didn’t know much about the field.

Remember that preparation can help you pass an aptitude test even if you have no prior knowledge in an area—if you think of it as learning something new and interesting, you may surprise yourself with what you can do.

What Is Adverse Possession?

The term “adverse possession” refers to a legal principle that grants title to someone who resides on or is in possession of another person’s land. The property’s title is granted to the possessor as long as certain conditions are met including whether they infringe on the rights of the actual owner and whether they are in continuous possession of the property. Adverse possession is sometimes called squatter’s rights, although squatter’s rights are a colloquial reference to the idea rather than a recorded law.

Understanding Adverse Possession

As mentioned above, adverse possession is a legal situation that occurs when one party is granted title to another person’s property by taking possession of it. This can happen intentionally or unintentionally with or without the property owner’s knowledge.

In cases of intentional adverse possession, a trespasser or squatter—someone who occupies another person’s land illegally—knowingly comes on to another person’s land to live on it and/or take it over. In other cases, adverse possession may be unintentional. For example, a homeowner may build a fence separating their yard without realizing they’ve crossed over and encroached on their neighbor’s property line. In either case, the adverse possessor—also referred to as the disseisor—can lay claim to that property. And if the claimant is successful in proving adverse possession, they are not required to pay the owner for the land.

Requirements to Prove Adverse Possession

The requirements to prove adverse possession tend to vary between jurisdictions. In many states, proof of payment for the taxes on a property and a deed is essentially required for the claimant to be successful. Each state has a time period during which the landowner of record can invalidate the claim at any time. For example, if the state threshold is 20 years and the landlord paints or pays for other maintenance on the house in question in the 19th year, then the claimant will have a difficult time proving adverse possession. That said, landowners are advised to remove the possibility of adverse possession as soon as possible by having signed agreements for any use of an owned property.

To successfully claim land under adverse possession, the claimant must demonstrate that his or her occupation of the land meets the following requirements:

• Continuous use: Under this condition, the adverse possessor must show they’ve been in continuous and uninterrupted possession of the property in question.
• Hostile and adverse occupation of the property: Although this doesn’t mean that the disseisor uses force to take the land, they must show there is no existing agreement or license from the landowner such as a written easement, lease, or rent agreement.
• Open and notorious possession: The person seeking adverse possession must occupy a property in a manner that is open, notorious, and obvious. The true owner is not required, however, to be aware of the occupation.
• Actual possession: The possessor must actively possess the property for the state’s predetermined statutory period, which may vary from three to 30 years. Possession may involve maintaining the land and—depending on state law—paying taxes.
• Exclusive use: The property is used solely by the disseisor, excluding any others from using it as well.

How to Prevent Adverse Possession

If you are a landowner, you can prevent a trespasser from gaining property ownership by taking some easy measures:

• Identify and mark your property boundaries. Inspect your land regularly for signs of trespassers. You may want to use “no trespassing” signs and block entrances with gates. Although many states will not find a “no trespassing” sign sufficient to prevent an adverse possession claim, it’s a good way to deter trespassers.
• Offer to rent the property to the trespasser. With a proper rental agreement in place, the trespasser cannot claim adverse possession.
• Grant written permission to someone to use your land, and make sure you get their written acknowledgment.
• Act fast. In the event of trespassing, you must act before the trespasser has been on your land for the period of time detailed by your jurisdiction, in order to make a successful case.

Adverse Possession vs. Homesteading

Adverse possession is similar to homesteading in practice. In homesteading, government-owned land or property with no clear owner on record is granted to new owners provided they are using and improving it. If a homesteader doesn’t use the land, they can lose it. Adverse possession can operate in a similar manner by freeing up land with an unclear title for productive use.

Of course, adverse possession can also be abused in ways homesteading cannot. If there is an informal easement between two farms where one farmer’s fence has an acre of the neighbors’ land in it, for example, the farmer using it can claim adverse possession to essentially bite off that chunk of land if there is no written easement agreement.

What Is the 183-Day Rule?

The 183-day rule is used by most countries to determine if someone should be considered a resident for tax purposes. In the U.S., the Internal Revenue Service (IRS) uses 183 days as a threshold in the “substantial presence test,” which determines whether people who are neither U.S. citizens nor permanent residents should still be considered residents for taxation.

Understanding the 183-Day Rule

The 183rd day of the year marks a majority of the days in a year, and for this reason countries around the world use the 183-day threshold to broadly determine whether to tax someone as a resident. These include Canada, Australia, and the United Kingdom, for example. Generally, this means that if you spent 183 days or more in the country during a given year, you are considered a tax resident for that year.

Each nation subject to the 183-day rule has its own criteria for considering someone a tax resident. For example, some use the calendar year for its accounting period, whereas some use a fiscal year. Some include the day the person arrives in their country in their count, while some do not.

Some countries have even lower thresholds for residency. For example, Switzerland considers you a tax resident if you have spent more than 90 days there.

The IRS and the 183-Day Rule

The IRS uses a more complicated formula to reach 183 days and determine whether someone passes the substantial presence test. To pass the test, and thus be subject to U.S. taxes, the person in question must:

• Have been physically present at least 31 days during the current year and;
• Present 183 days during the three-year period that includes the current year and the two years immediately preceding it.

Those days are counted as:

• All of the days they were present during the current year
• One-third of the days they were present during the previous year
• One-sixth of the days present two years previously

Other IRS Terms and Conditions

The IRS generally considers someone to have been present in the U.S. on a given day if they spent any part of a day there. But there are some exceptions.

Days that do not count as days of presence include:

• Days that you commute to work in the U.S. from a residence in Canada or Mexico if you do so regularly
• Days you are in the U.S. for less than 24 hours while in transit between two other countries
• Days you are in the U.S. as a crew member of a foreign vessel
• Days you are unable to leave the U.S. because of a medical condition that develops while you are there
• Days in which you qualify as exempt, which includes foreign-government-related persons under an A or G visa, teachers and trainees under a J or Q visa; a student under an F, J, M, or Q visa; and a professional athlete competing for charity

U.S. Citizens and Resident Aliens

Strictly speaking, the 183-day rule does not apply to U.S. citizens and permanent residents. U.S. citizens are required to file tax returns regardless of their country of residence or the source of their income.

However, they may exclude at least part of their overseas earned income (up to $108,700 in 2021) from taxation provided they meet a physical presence test in the foreign country and paid taxes there. To meet the physical presence test, the person needs to be present in the country for 330 complete days in 12 consecutive months.

U.S. Tax Treaties and Double Taxation

The U.S. has tax treaties with other countries to determine jurisdiction for income tax purposes and to avoid double taxation of their citizens. These agreements contain provisions for the resolution of conflicting claims of residence.

Residents of these partner nations are taxed at a lower rate and may be exempt from U.S. taxes for certain types of income earned in the U.S. Residents and citizens of the U.S. are also taxed at a reduced rate and may be exempt from foreign taxes for certain income earned in other countries. It is important to note that some states do not honor these tax treaties.

183 Day Rule FAQs 

How Many Days Can You Be in the U.S. Without Paying Taxes?

The IRS considers you a U.S. resident if you were physically present in the U.S. on at least 31 days of the current year and 183 days during a three-year period. The three-year period consists of the current year and the prior two years. The 183-day rule includes all the days present in the current year, 1/3 of the days you were present in year 2, and 1/6 of the days you were present in year 1.

How Long Do You Have to Live in a State Before You’re Considered a Resident?

Many states use the 183-day rule to determine residency for tax purposes, and what constitutes a day varies among states. For instance, any time spent in New York, except for travel to destinations outside of New York (e.g., airport travel), is considered a day. So, if you work in Manhattan but live in New Jersey, you may still be considered a New York resident for tax purposes even if you never spend one night there.

It is important to consult the laws of each state that you frequent to determine if you are required to pay their income taxes. Also, some states have special agreements whereby a resident who works in another state is only required to pay taxes in the state of their permanent residence—where they are domiciled.

How Do I Calculate the 183-Day Rule?

For most countries that apply this rule, you are a tax resident of that country if you spend 183 or more there. The United States, however, has additional criteria for applying the 183-rule. If you were physically present in the U.S. on at least 31 days of the current year and 183 days during a three-year period, you are a U.S. resident for tax purposes. Additional stipulations apply to the three-year threshold.

How Do I Know if I Am a Resident for Tax Purposes?

If you meet the IRS criteria for being qualified as a resident for tax purposes and none of the qualified exceptions apply, you are a U.S. resident. You are a tax resident if you were physically present in the U.S. for 31 days of the current year and 183 days in the last three years, including the days present in the current year, 1/3 of the days from the previous year, and 1/6 of the days from the first year.

The IRS also has rules regarding what constitutes a day. For example, commuting to work from a neighboring country (e.g., Mexico and Canada) does not count as a day. Also, exempt from this test are certain foreign government-related individuals, teachers, students, and professional athletes temporarily in the United States.

Do I Meet the Substantial Presence Test?

It is important to consult the laws of the country for which the test will be performed. If wanting to find out about meeting the U.S.’s substantial presence test, you must consider the number of days present within the last three years.

First, you must have been physically present in the United States for 31 days of the current year. If so, count the full number of days present for the current year. Then, multiply the number of days present in year 1 by 1/6 and the days in year 2 by 1/3. Sum the totals. If the result is 183 or more, you are a resident. Lastly, if none of the IRS qualifying exceptions apply, you are a resident.

What Is the American Opportunity Tax Credit (AOTC)?

The American Opportunity Tax Credit (AOTC) is a tax credit for qualified education expenses associated with the first four years of a student’s postsecondary education. The maximum annual credit is $2,500 per eligible student. The student, someone claiming the student as a dependent, or a spouse making postsecondary education payments can claim the AOTC on their tax return.

Understanding the American Opportunity Tax Credit (AOTC)

With the AOTC, a household with a qualifying student can receive a maximum $2,500 tax credit per year for the first four years of higher education. Parents claiming a dependent child who is a full-time student ages 19 to 24 can claim an additional $500 Child Tax Credit.

The AOTC helps with educational costs such as tuition and other expenses related to a student’s coursework. Eligible students (or their parents) can claim 100% of the first $2,000 spent on school expenses and 25% of the next $2,000. This comes out to a maximum credit of $2,500: (100% × $2,000) + (25% × $2,000).

In general, tax credits are refundable, nonrefundable, or partially refundable. Up to $1,000 (40%) of the AOTC is refundable, making it a partially refundable tax credit. So, if the credit brings your tax liability to $0, you can receive 40% of your eligible credit (up to $1,000) as a refund.

AOTC Eligibility Requirements

Like other tax credits, you must meet specific eligibility requirements to claim the AOTC.

Who Can Claim the AOTC?

To claim the AOTC on your tax return, you must meet all three of these requirements:

• You pay qualified education expenses for higher education.
• You pay the education expenses for an eligible student.
• The eligible student is either you, your spouse, or a dependent whom you claim on your tax return.

Additionally, you must receive Internal Revenue Service (IRS) Form 1098-T to claim the credit. Here’s an example of a completed form:

Source: Internal Revenue Service

Which Students Qualify for the AOTC?

A student is eligible for the AOTC only if they meet certain requirements. Specifically, the student must:

• Be taking courses toward a degree or some other recognized education qualification
• Be enrolled at least part time for at least one academic period beginning in the tax year
• Not have finished the first four years of higher education at the beginning of the tax year
• Not have claimed the AOTC (or the former Hope credit) for more than four tax years
• Not have a felony drug conviction at the end of the tax year

Which Expenses Qualify for the AOTC?

For the purposes of the AOTC, qualified education expenses include tuition and some related costs required for attending an eligible educational institution. An eligible educational institution is any accredited public, nonprofit, or private college, university, vocational school, or other postsecondary educational institution. Related expenses include:

• Student activity fees paid to the school as a condition of enrollment or attendance
• Books, supplies, and equipment needed for classes, whether or not you buy them from the school

You can pay for qualified education expenses with student loans. However, you can’t claim the credit if you paid for expenses with scholarships, grants, employer-provided assistance, or funds from a 529 savings plan.

What Are the Income Limits for the AOTC?

To claim the full credit, your modified adjusted gross income (MAGI) must be $80,000 or less ($160,000 if married filing jointly). The credit begins to phase out above these limits and disappears entirely if your MAGI is above $90,000 ($180,000 for married filing jointly).