Instructions for IRS Form 1040-c - U.S. Departing Alien Income Tax Return 2018

January 1, 2018 "Instructions For Irs Form 1040-c - U.s. Departing Alien Income Tax Return" contain the updated filing procedures for the IRS-issued Form 1040-C. Download your copy of the instructions by clicking the link below.

IRS Form 1040-C is a tax form issued by the United States Internal Revenue Service.

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2018
Department of the Treasury
Internal Revenue Service
Instructions for Form 1040-C
U.S. Departing Alien Income Tax Return
Your itemized deductions are no
or business, and the unadjusted basis
Section references are to the Internal
Revenue Code unless otherwise noted.
longer limited if your adjusted gross
of qualified property held by the trade
income is over a certain amount.
or business. The deduction can be
Future developments. For the latest
You can deduct the part of your
taken in addition to the standard or
information about developments
medical and dental expenses that is
itemized deductions. For more
related to Form 1040-C and its
more than 7.5% of your adjusted
information, see Code section 199A.
instructions, such as legislation
gross income (AGI).
enacted after they were published, go
Modification of deduction for per-
Your deduction of state and local
to
IRS.gov/Form1040c.
sonal casualty losses. Beginning in
income, sales, and property taxes is
2018, your deduction for personal
limited to a combined total deduction
What's New
casualty losses is modified. See
of $10,000 ($5,000 if married filing
Personal casualty losses
for more
Change in tax rates. For 2018, most
separately).
information.
tax rates have been reduced. The
You can no longer deduct
Limitation on wagering losses.
2018 tax rates are 10%, 12%, 22%,
job-related expenses or other
24%, 32%, 35%, and 37%.
Beginning in 2018, the limitation on
miscellaneous itemized deductions
losses from wagering transactions
that were subject to the 2% of AGI
Moving expenses no longer de-
applies not only to the actual costs of
floor. You may still deduct certain
ductible. For 2018, you can no
wagers you incurred, but to other
other items on Schedule A, such as
longer deduct your moving expenses
expenses incurred in connection with
gambling losses.
unless you are a member of the
the conduct of your gambling activity.
For indebtedness incurred after
Armed Forces on active duty.
December 15, 2017, the deduction for
Alternative minimum tax (AMT) ex-
Deduction for personal exemp-
home mortgage interest is limited to
emption amount increased. The
tions suspended. For 2018, you
interest on up to $750,000 of home
AMT exemption amount is increased
can’t claim a personal exemption
acquisition indebtedness. This new
to $70,300 ($109,400 if married filing
deduction for yourself, your spouse,
limit doesn't apply if you had a binding
jointly or qualifying widow(er);
or your dependents.
contract to close on a home after
$54,700 if married filing separately).
December 15, 2017, and closed on or
Increase in and modification of
The income level at which the AMT
before April 1, 2018, and the prior limit
child tax credit. For 2018, the credit
exemption begins to phase out has
would apply.
amount for the child tax credit is
increased to $500,000 ($1,000,000 if
You can no longer deduct interest
increased to $2,000 per qualifying
married filing jointly).
on home equity indebtedness, which
child, with $1,400 of the credit
Standard deduction amount in-
means indebtedness not incurred for
refundable. In addition, a $500 credit
creased. For 2018, the standard
the purpose of buying, building, or
is available for each of your
deduction amount has been
substantially improving the qualified
dependents that is not a qualifying
increased for all filers, and the
residence secured by the
child.
amounts are as follows.
indebtedness.
Social security number (SSN) re-
Single or Married Filing Separately–
Your standard deduction is
quired for child tax credit. Your
$12,000.
zero if (a) your spouse
!
child must have an SSN issued before
Married Filing Jointly or Qualifying
itemizes on a separate return,
the due date of your 2018 return
Widow(er)–$24,000.
CAUTION
or (b) you were a dual-status alien and
(including extensions) to be claimed
Head of Household–$18,000.
you do not elect to be taxed as a
as a qualifying child for the child tax
Social security tax. For 2018, the
resident alien for 2018.
credit or additional child tax credit. If
maximum amount of earned income
your dependent child has an ITIN, but
(wages and net earnings from
Deduction for qualified business
not an SSN, issued before the due
self-employment) subject to the social
income. For tax years beginning
date of your 2018 return (including
security tax is $128,400.
after December 31, 2017, taxpayers
extensions), you may be able to claim
other than corporations are entitled to
the new credit for other dependents
General Instructions
a deduction of up to 20% of their
for that child.
qualified business income from a
Changes to itemized deductions.
Reminders
qualified trade or business. The
For 2018, the following changes have
deduction is subject to multiple
Use your 2017 tax return as a guide in
been made to itemized deductions
limitations such as the type of trade or
figuring your 2018 tax, but be sure to
that can be claimed on Schedule A.
business, the taxpayer's taxable
consider the following.
income, the amount of W-2 wages
paid with respect to the qualified trade
May 01, 2018
Cat. No. 11311Q
2018
Department of the Treasury
Internal Revenue Service
Instructions for Form 1040-C
U.S. Departing Alien Income Tax Return
Your itemized deductions are no
or business, and the unadjusted basis
Section references are to the Internal
Revenue Code unless otherwise noted.
longer limited if your adjusted gross
of qualified property held by the trade
income is over a certain amount.
or business. The deduction can be
Future developments. For the latest
You can deduct the part of your
taken in addition to the standard or
information about developments
medical and dental expenses that is
itemized deductions. For more
related to Form 1040-C and its
more than 7.5% of your adjusted
information, see Code section 199A.
instructions, such as legislation
gross income (AGI).
enacted after they were published, go
Modification of deduction for per-
Your deduction of state and local
to
IRS.gov/Form1040c.
sonal casualty losses. Beginning in
income, sales, and property taxes is
2018, your deduction for personal
limited to a combined total deduction
What's New
casualty losses is modified. See
of $10,000 ($5,000 if married filing
Personal casualty losses
for more
Change in tax rates. For 2018, most
separately).
information.
tax rates have been reduced. The
You can no longer deduct
Limitation on wagering losses.
2018 tax rates are 10%, 12%, 22%,
job-related expenses or other
24%, 32%, 35%, and 37%.
Beginning in 2018, the limitation on
miscellaneous itemized deductions
losses from wagering transactions
that were subject to the 2% of AGI
Moving expenses no longer de-
applies not only to the actual costs of
floor. You may still deduct certain
ductible. For 2018, you can no
wagers you incurred, but to other
other items on Schedule A, such as
longer deduct your moving expenses
expenses incurred in connection with
gambling losses.
unless you are a member of the
the conduct of your gambling activity.
For indebtedness incurred after
Armed Forces on active duty.
December 15, 2017, the deduction for
Alternative minimum tax (AMT) ex-
Deduction for personal exemp-
home mortgage interest is limited to
emption amount increased. The
tions suspended. For 2018, you
interest on up to $750,000 of home
AMT exemption amount is increased
can’t claim a personal exemption
acquisition indebtedness. This new
to $70,300 ($109,400 if married filing
deduction for yourself, your spouse,
limit doesn't apply if you had a binding
jointly or qualifying widow(er);
or your dependents.
contract to close on a home after
$54,700 if married filing separately).
December 15, 2017, and closed on or
Increase in and modification of
The income level at which the AMT
before April 1, 2018, and the prior limit
child tax credit. For 2018, the credit
exemption begins to phase out has
would apply.
amount for the child tax credit is
increased to $500,000 ($1,000,000 if
You can no longer deduct interest
increased to $2,000 per qualifying
married filing jointly).
on home equity indebtedness, which
child, with $1,400 of the credit
Standard deduction amount in-
means indebtedness not incurred for
refundable. In addition, a $500 credit
creased. For 2018, the standard
the purpose of buying, building, or
is available for each of your
deduction amount has been
substantially improving the qualified
dependents that is not a qualifying
increased for all filers, and the
residence secured by the
child.
amounts are as follows.
indebtedness.
Social security number (SSN) re-
Single or Married Filing Separately–
Your standard deduction is
quired for child tax credit. Your
$12,000.
zero if (a) your spouse
!
child must have an SSN issued before
Married Filing Jointly or Qualifying
itemizes on a separate return,
the due date of your 2018 return
Widow(er)–$24,000.
CAUTION
or (b) you were a dual-status alien and
(including extensions) to be claimed
Head of Household–$18,000.
you do not elect to be taxed as a
as a qualifying child for the child tax
Social security tax. For 2018, the
resident alien for 2018.
credit or additional child tax credit. If
maximum amount of earned income
your dependent child has an ITIN, but
(wages and net earnings from
Deduction for qualified business
not an SSN, issued before the due
self-employment) subject to the social
income. For tax years beginning
date of your 2018 return (including
security tax is $128,400.
after December 31, 2017, taxpayers
extensions), you may be able to claim
other than corporations are entitled to
the new credit for other dependents
General Instructions
a deduction of up to 20% of their
for that child.
qualified business income from a
Changes to itemized deductions.
Reminders
qualified trade or business. The
For 2018, the following changes have
deduction is subject to multiple
Use your 2017 tax return as a guide in
been made to itemized deductions
limitations such as the type of trade or
figuring your 2018 tax, but be sure to
that can be claimed on Schedule A.
business, the taxpayer's taxable
consider the following.
income, the amount of W-2 wages
paid with respect to the qualified trade
May 01, 2018
Cat. No. 11311Q
If you are a nonresident alien,
To get information, forms, and
Former U.S. citizens and former
use the 2017 Instructions for
publications in Spanish, go to
U.S. long-term residents. If you
TIP
TIP
Form 1040NR, U.S.
IRS.gov/Espanol.
expatriate or terminate your long-term
Nonresident Alien Income Tax Return,
residency in 2018, you must file Form
Tax questions. If you have a
to help you complete Form 1040-C.
8854, Initial and Annual Expatriation
tax question not answered by
Statement, with your 2018 income tax
TIP
If you are a resident alien, use
this publication, go to
return. You also may be subject to
the 2017 Instructions for Form
IRS.gov/Individuals/International-
income tax under section 877A on the
TIP
1040, U.S. Individual Income
Taxpayers.
net unrealized gain on your property
Tax Return, to help you complete
as if the property had been sold on the
The Taxpayer Advocate Service
Form 1040-C.
day before your expatriation date. You
Is Here To Help You
figure this tax on Form 8854. For more
You can get tax forms, instructions,
details, see Pub. 519, U.S. Tax Guide
What is the Taxpayer Advocate
and publications from the Internal
for Aliens.
Service? The Taxpayer Advocate
Revenue Service (IRS). See
Service (TAS) is an independent
Social security or Medicare taxes
Additional
information, later.
organization within the Internal
withheld in error. If you are a
Alien status rules. If you are not a
Revenue Service that helps taxpayers
foreign student on an F-1, J-1, M, or Q
citizen of the United States, specific
and protects taxpayer rights. Our job
visa, and social security or Medicare
rules apply to determine if you are a
is to ensure that every taxpayer is
taxes were withheld on your wages in
resident or nonresident alien for tax
treated fairly and that you know and
error, you may want to file Form 843,
purposes. Intent is not a factor in
understand your rights under the
Claim for Refund or Request for
determining your residency status.
Taxpayer Bill of
Rights.
Abatement, to request a refund of
these taxes. For more information,
You are considered a resident alien
What can TAS do for you? We can
see Refund of Taxes Withheld in Error
if you meet either the green card test
help you resolve problems that you
in chapter 8 of Pub. 519.
or the substantial presence test.
can’t resolve with the IRS. And our
However, even though you otherwise
service is free. If you qualify for our
Child tax credit not refundable for
would meet the substantial presence
assistance, you will be assigned to
resident aliens electing to exclude
test, you will not be considered a U.S.
one advocate who will work with you
foreign earned income from tax.
resident if you qualify for the closer
throughout the process and will do
Group I (resident alien) filers who
connection to a foreign country
everything possible to resolve your
exclude foreign earned income from
exception or you are able to qualify as
issue. TAS can help you if:
their gross income may not claim any
a nonresident alien by reason of a tax
Your problem is causing financial
additional child tax credit on line 27.
treaty. These tests and the exception
difficulty for you, your family, or your
These filers are only allowed to claim
are discussed in the instructions for
business.
the child tax credit to the extent
Part I—Explanation of
You face (or your business is
allowable on line 18.
Status—Resident or Nonresident
facing) an immediate threat of
Individual taxpayer identification
Alien, later.
adverse action.
number (ITIN) renewal. ITINs
You’ve tried repeatedly to contact
Additional information. For more
assigned before January 1, 2013, and
the IRS but no one has responded, or
information on the taxation of resident
ITINs that you have not included on a
the IRS hasn’t responded by the date
and nonresident aliens, residency
tax return in the last three consecutive
promised.
tests, and other special rules, see
years will expire. Renew your ITIN to
Pub. 519.
How can you reach us? We have
avoid delays in processing your tax
offices in every state, the District of
return. For more information, see the
You can download tax forms,
Columbia, and Puerto Rico. Your local
Instructions for Form W-7.
instructions, and publications
advocate’s number is in your local
at IRS.gov/Forms-Pubs.
Purpose of Form
directory and at
IRS.gov/Taxpayer-
Advocate. You can also call us at
Ordering forms and
Form 1040-C is used by aliens who
1-877-777-4778.
publications. Go to
IRS.gov/
intend to leave the United States or
OrderForms
to order current
any of its possessions to:
How can you learn about your tax-
and prior-year forms and instructions.
Report income received or
payer rights? The Taxpayer Bill of
Your order should arrive within 10
expected to be received for the entire
Rights describes ten basic rights that
business days.
tax year, and
all taxpayers have when dealing with
Pay the expected tax liability on that
the IRS. Our Tax Toolkit at
IRS.gov/
People who are deaf,
income, if they are required to do so.
Taxpayer-Advocate
can help you
hard-of-hearing, or have a
understand what these rights mean to
Form 1040-C must be filed before
speech disability and who
you and how they apply. These are
an alien leaves the United States or
have access to TTY/TDD equipment
your rights. Know them. Use them.
any of its possessions. For more
can call 1-800-829-4059. Deaf or
information, see
How To Get the
How else does the Taxpayer Advo-
hard-of-hearing individuals can also
Certificate, later.
cate Service help taxpayers? TAS
contact the IRS through relay services
works to resolve large-scale problems
such as the Federal Relay Service
that affect many taxpayers. If you
available at www.gsa.gov/FedRelay.
-2-
Form 1040-C 2018
know of one of these broad issues,
determination of your tax liability. If it
United States (including expenses for
please report it to us at
IRS.gov/
is later determined that you owe more
travel, maintenance, and tuition),
SAMS.
tax, you will have to pay the additional
b. The value of any services or
tax due.
accommodations furnished incident to
Treaty Benefits
such study or training,
Form 1040-C or Form 2063. If you
If you take the position that a treaty of
are an alien, you should not leave the
c. Income from employment
the United States overrides or
United States or any of its
authorized under U.S. immigration
modifies any provision of the Internal
possessions without getting a
laws, or
Revenue Code and that position
certificate of compliance from your
d. Interest on deposits, but only if
reduces (or potentially reduces) your
IRS Field Assistance Area Director on
that interest is not effectively
tax, you may have to file Form 8833,
Form 1040-C or Form 2063, U.S.
connected with a U.S. trade or
Treaty-Based Return Position
Departing Alien Income Tax
business.
Disclosure Under Section 6114 or
Statement, unless you meet one of
3. You are a student, or the
7701(b), with your final U.S. income
the
Exceptions,
explained later.
spouse or child of a student, with an
tax return. See Pub. 519 for more
You can file the shorter Form 2063
M-1 or M-2 visa. To qualify, you must
information.
if you have filed all U.S. income tax
not have received any income from
Copies of the treaties are
returns you were required to file, you
sources in the United States other
available at
IRS.gov/
paid any tax due, and either of the
than:
Businesses/International-
following applies.
a. Income from employment
Businesses/United States-Income-
You have no taxable income for the
authorized under U.S. immigration
Tax-Treaties-A-to-Z.
year of departure and for the
laws, or
preceding year (if the time for filing the
b. Interest on deposits, but only if
Final Return Required
earlier year's return has not passed).
that interest is not effectively
You are a resident alien with
A Form 1040-C is not a final return.
connected with a U.S. trade or
taxable income for the preceding year
You must file a final income tax return
business.
or for the year of departure, but the
after your tax year ends.
Area Director has decided that your
4. Any of the following applies.
If you are a U.S. citizen or resident
leaving will not hinder collecting the
a. You are on a pleasure trip and
alien on the last day of the year, you
tax.
have a B-2 visa.
should file Form 1040 reporting your
Exceptions. You do not need a
b. You are on a business trip, have
worldwide income. If you are not a
certificate of compliance if any of the
a B-1 visa or a combined B-1/B-2
U.S. citizen or resident alien on the
following applies.
visa, and do not stay in the United
last day of the year, you generally
1. You are a representative of a
States or any of its possessions for
should file Form 1040NR or, if eligible,
foreign government who holds a
more than 90 days during the tax
Form 1040NR-EZ, U.S. Income Tax
year.
diplomatic passport, a member of the
Return for Certain Nonresident Aliens
representative's household, a servant
With No Dependents. However,
c. You are passing through the
who accompanies the representative,
certain individuals who were resident
United States or any of its
an employee of an international
aliens at the beginning of the tax year
possessions, including travel on a C-1
organization or foreign government
but nonresident aliens at the end of
visa or under a contract, such as a
whose pay for official services is
the tax year must file a “dual-status”
bond agreement, between a
exempt from U.S. taxes and who has
return. See
Dual-status tax
year, later.
transportation line and the U.S.
no other U.S. source income, or a
Attorney General.
Any tax you pay with Form 1040-C
member of the employee's household
d. You are admitted on a
counts as a credit against tax on your
who has no income from U.S.
border-crossing identification card.
final return. Any overpayment shown
sources. However, if you signed a
on Form 1040-C will be refunded only
e. You do not need to carry
waiver of nonimmigrant's privileges as
if and to the extent your final return for
passports, visas, or border-crossing
a condition of holding both your job
the tax year shows an overpayment.
identification cards because you are
and your status as an immigrant, this
(i) visiting for pleasure or (ii) visiting
exception does not apply, and you
Note. There are some tax items that
for business and do not stay in the
must get a certificate.
are not addressed on Form 1040-C or
United States or any of its
2. You are a student, industrial
in these instructions that must be
possessions for more than 90 days
trainee, or exchange visitor, or the
taken into account on your final return.
during the tax year.
spouse or child of such an individual.
For example, if you are a Group I
f. You are a resident of Canada or
To qualify for this exception, you must
(resident alien) filer, you must
Mexico who commutes frequently to
have an F-1, F-2, H-3, H-4, J-1, J-2, or
reconcile any advance payments of
the United States to work and your
Q visa. Additionally, you must not
the premium tax credit with the
wages are subject to income tax
have received any income from
premium tax credit allowed on your
withholding.
sources in the United States other
tax return.
than:
g. You are a military trainee
Certificate of Compliance
admitted for instruction under the
a. Allowances covering expenses
Department of Defense and you will
Note. The issuance of a certificate of
incident to your study or training in the
compliance is not a final
Form 1040-C 2018
-3-
leave the United States on official
showing wages paid and tax withheld.
If you owe income tax and the Area
military travel orders.
If you are self-employed, you must
Director determines that your
bring a statement of income and
departure will jeopardize the
However, exception 4 does not
expenses up to the date you plan to
collection of the tax, a certificate of
apply if the Area Director believes you
leave.
compliance on Form 1040-C will be
had taxable income during the current
issued only when you pay the tax due
6. Proof of any payments of
tax year through your departure date,
or post bond, and the certificate will
estimated tax for the past year and the
or the preceding tax year, and that
apply only to the departure for which it
current year.
your leaving the United States would
is issued.
hinder collecting the tax.
7. Documents showing any gain or
loss from the sale of personal and/or
For additional information go to
How To Get the Certificate
real property, including capital assets
IRS.gov/Individuals/International-
and merchandise.
To get a certificate of compliance, you
Taxpayers/Departing-Alien-
must go to an IRS office at least two
8. Documents concerning
Clearance-Sailing-Permit.
weeks before you leave the United
scholarship or fellowship grants, such
Specific Instructions
States and file either Form 2063 or
as: (a) verification of the grantor,
Form 1040-C and any other required
source, and purpose of the grant; (b)
tax returns that have not been filed.
Joint return. Nonresident aliens
copies of the application for, and
The certificate may not be issued
cannot file a joint return. Resident
approval of, the grant; (c) a statement
more than 30 days before you leave. If
aliens can file a joint return on Form
of the amount paid, and your duties
both you and your spouse are aliens
1040-C only if both of the following
and obligations under the grant; and
and both of you are leaving the United
apply.
(d) a list of any previous grants.
States, both of you must go to the IRS
1. The alien and his or her spouse
9. Documents indicating
office.
reasonably expect to be eligible to file
qualification for special tax treaty
To find an IRS office, click on
a joint return at the close of the tax
benefits.
Contact Your Local IRS Office
and
period for which the return is made.
10. Document verifying your date of
click on Services Provided to see if
2. If the tax period of the alien is
departure from the United States,
Alien Clearance (Sailing Permits)
terminated, the tax period of his or her
such as an airline ticket.
service is available at that office.
spouse is terminated at the same
11. Document verifying your U.S.
Please note that all Taxpayer
time.
taxpayer identification number (TIN),
Assistance Centers (TACs) operate
such as a social security card or an
If Form 1040-C is filed as a joint
by appointment. Services are limited
IRS-issued Notice CP 565 showing
return, enter both spouses' names,
and not all services are available at
your individual taxpayer identification
identification numbers, and passport
every TAC office. Call
number (ITIN).
or alien registration card numbers in
1-844-545-5640 to schedule an
the spaces provided on page 1 of the
appointment.
Note. If you are married and reside in
form. Also, include both spouses'
Remember that you must visit an
a community property state, also bring
income in Part II and furnish both
IRS office at least two weeks (but no
the documents listed on this page for
spouses' information in Part I of the
more than 30 days) before you leave
your spouse. This applies whether or
form. It may be necessary to complete
the United States, so make sure you
not your spouse requires a certificate.
a separate Part I for each spouse.
call for an appointment well before
If you are filing Form 1040-C, file an
those time frames.
Identifying number. You must enter
original and one copy for the tax year
your identifying number where
Please be prepared to furnish your
in which you plan to leave. If you are
requested at the top of page 1 of Form
anticipated date of departure and
departing between January 1, 2018,
1040-C. Generally, this is your social
bring the following records with you if
and April 17, 2018, you also must file
security number (SSN). If you do not
they apply.
Form 1040NR or Form 1040 for 2017
have an SSN, contact the Social
1. A valid passport with your alien
and pay any tax due.
Security Administration (SSA) to find
registration card or visa.
out if you are eligible for one.
Generally, a certificate of
2. Copies of your U.S. income tax
compliance on Form 1040-C will be
You may call the SSA at
returns filed for the past 2 years. If you
issued without your paying tax or
1-800-772-1213 (for the deaf
were in the United States for less than
posting bond if you have not received
or hard-of-hearing, call the
2 years, bring copies of the income
a termination assessment. A
TTY number, 1-800-325-0778).
tax returns you filed for that period.
termination assessment is a
3. Receipts for income taxes paid
demand for immediate payment of
You can also visit the SSA's
on these returns.
income tax for the current and
website at
www.ssa.gov/
immediately preceding year.
4. Receipts, bank records,
ssnumber/, and then enter
canceled checks, and other
“Noncitizen” in the search box.
This certificate applies to all of your
documents that prove your
departures during the current tax year,
deductions, business expenses, and
Individual taxpayer
subject to revocation on any later
dependents claimed on the returns.
identification number (ITIN). If you
departure if the Area Director believes
do not have an SSN and are not
5. A statement from each
your leaving would hinder collecting
eligible to get one, you must apply for
employer you worked for this year
the tax.
-4-
Form 1040-C 2018
an ITIN. For details on how to apply
for Exempt Individuals and Individuals
(a)
(b)
(c)
(d)
for an ITIN, see Form W-7,
With a Medical Condition, with your
Year
Days of
Multiplier
Testing
Application for IRS Individual
final income tax return.
physical
days
Taxpayer Identification Number, and
presence
(multiply
Closer connection to a foreign
(b) times
its instructions. Get the form at
country exception. Even though
(c))
IRS.gov/Pub/IRS-pdf/FW7.pdf. If you
you otherwise would meet the
already have an ITIN, enter it
2018
1.000
substantial presence test, you are not
wherever your SSN is requested on
2017
.333
treated as having met that test for
your tax return.
2018 if you: (a) were present in the
2016
.167
If you are required to include
United States for fewer than 183 days
Total testing days (add
another person's SSN on your return
during 2018, (b) establish that during
column (d))
and that person does not have and
2018 you had a tax home in a foreign
cannot get an SSN, enter that
country, and (c) establish that during
person's ITIN.
2018 you had a closer connection to
one foreign country in which you had
Days of presence in the United
Note. An ITIN is for tax use only. It
a tax home than to the United States
States. Generally, you are treated as
does not entitle you to social security
unless you had a closer connection to
present in the United States on any
benefits or change your employment
two foreign countries.
day that you are physically present in
or immigration status under U.S. law.
the country at any time during the day.
For more information go to
IRS.gov/
Note. If you meet this exception, file
However, you do not count the
Individuals/International-Taxpayers/
Form 8840, Closer Connection
following days of presence in the
Taxpayer-Identification-Numbers-TIN.
Exception Statement for Aliens, with
United States for the substantial
your final income tax return.
Part I—Explanation of
presence test.
Residence determined by tax trea-
Days you commuted to work in the
Status—Resident or
ty. If you are a dual-resident
United States from a residence in
Nonresident Alien
taxpayer, you can still claim the
Canada or Mexico if you regularly
Generally, you are considered a
benefits under an income tax treaty. A
commuted from Canada or Mexico.
resident alien if you meet either the
dual-resident taxpayer is one who is a
Days you were in the United States
green card test or the substantial
resident of both the United States and
for less than 24 hours while you were
presence test for 2018. You are
another country under each country's
traveling between two places outside
considered a nonresident alien for the
tax laws. The income tax treaty
the United States.
year if you do not meet either of these
between the two countries must
Days you were temporarily present
tests. For more information on
contain a provision that provides for
in the United States as a regular
resident and nonresident alien status,
resolution of conflicting claims of
member of the crew of a foreign
see Pub. 519.
residence (tie-breaker rule). If you are
vessel engaged in transportation
treated as a resident of a foreign
between the United States and a
Green card test. You are a resident
country under a tax treaty, you are
foreign country or a possession of the
alien for tax purposes if you are a
treated as a nonresident alien in
United States. This rule does not
lawful permanent resident of the
figuring your U.S. income tax. For
apply to any day you were otherwise
United States at any time during 2018.
purposes other than figuring your tax,
engaged in a trade or business in the
You are a lawful permanent resident
you will be treated as a U.S. resident.
United States.
of the United States if you have been
Days you intended, but were
given the privilege, under U.S.
Dual-status tax year. A dual-status
unable, to leave the United States
immigration laws, of residing
tax year is one in which you have
because of a medical condition or
permanently in the United States as
been both a resident alien and a
medical problem that arose while you
an immigrant. You generally have this
nonresident alien. The most common
were in the United States.
status if the U.S. Citizenship and
dual-status tax years are the years of
Days you were an exempt
Immigration Services (USCIS) (or its
arrival and departure. In figuring your
individual. In general, an exempt
predecessor organization, the
income tax liability for a dual-status
individual is: (a) a foreign-
Immigration and Naturalization
tax year, different U.S. income tax
government-related individual, (b) a
Service) has issued you an alien
rules apply to each status. You must
teacher or trainee, (c) a student, or (d)
registration card, also known as a
follow these rules in completing Form
a professional athlete who is
green card.
1040-C. See the Form 1040NR
temporarily present in the United
instructions for details.
Substantial presence test. You are
States to compete in a charitable
considered a resident alien for tax
sports event.
Note. Certain resident aliens who
purposes if you meet the substantial
leave the United States during the
presence test for 2018. You meet this
Note. If you qualify to exclude days of
year may be subject to tax under
test if you were physically present in
presence in the United States
section 877A. These resident aliens
the United States for at least:
because you are an exempt individual
compute their tax using the method
31 days during 2018, and
(other than a
prescribed under section 877A when
183 days during the period 2018,
foreign-government-related individual)
completing Form 1040-C. See
2017, and 2016, using the following
or because of a medical condition or
chart.
problem, file Form 8843, Statement
Form 1040-C 2018
-5-

Download Instructions for IRS Form 1040-c - U.S. Departing Alien Income Tax Return 2018

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