Form 1040-C
Forms

Form 1040-C: U.S. Departing Alien Income Tax Return

Flying or departing from the US this year? Learn about the final return, certificate of compliance, and alien status rules you need to consider before taking off.

What is Form 1040-C?

Form 1040-C is an important document for aliens who are leaving the United States or any of its possessions, as they must use this form to report and pay anticipated taxes on income received or expected to be received during their stay. It is crucial to note that filing Form 1040-C is not a final return – a final return must be filed after the end of the tax year. Aliens requesting a certificate of compliance must generally obtain a sailing or departure permit and meet certain criteria, such as being a U.S. citizen or resident alien on the last day of the year or holding a certain visa. Rules for alien status also apply to determining residency status.

See also:  Form 1040-NR: Nonresident Alien Income Tax Return

IRS Form 1040-C – Who Needs to Fill It Out?

Form 1040-C is used by aliens who are leaving the United States or any of its possessions and need to report income, as well as pay any expected tax liability. This form must be filed before an alien departs from the country or its possessions. If necessary, you must obtain a sailing or departure permit in order to get a certificate of compliance from the IRS Field Assistance Area Director. Be aware that filing Form 1040-C is not a final determination of your tax liability and that you must still file an income tax return after your tax year ends. Your filing status will determine which form you must submit – Form 1040 or 1040-NR for non-residents, and Form 1040 or 1040-SR for resident aliens.

Step-by-Step: Form 1040-C Instructions For Filling Out the Document

To complete Form 1040-C, make sure to consider former U.S. citizens or former U.S. long-term residents, any taxes withheld in error, the child tax credit for resident aliens electing to exclude foreign earned income from tax, and any Individual Taxpayer Identification Number or Social Security Number necessary for the document. In addition, familiarize yourself with alien status rules, how to file the final return, and the exceptions to the Certificate of Compliance. A Form 1040-C must be filed before an alien leaves the United States or any of its possessions. This form is not a final determination of tax liability and should be used to report expected or received income and pay any expected tax. You can request a Certificate of Compliance by obtaining a sailing or departure permit.

See also:  Form 8950: Application for Voluntary Correction Program (VCP)

Below, we present a table that will help you understand how to fill out Form 1040-C.

Information Required for Form 1040-C Details
Alien Departure Completing Form 1040-C before leaving the U.S.
Taxes Withheld Dealing with taxes withheld in error
Credits and Alien Status Child tax credit and alien status rules
Final Determination Understanding the form’s purpose
See also:  Form 943-A-PR: Agricultural Employer's Record of Federal Tax Liability (Puerto Rico Version)

Do You Need to File Form 1040-C Each Year?

Yes, Form 1040-C is needed each year by all aliens who intend to leave the United States or its possessions and who need to report their income and pay any required tax. There are important exceptions to this requirement, such as if the alien has a diplomatic passport or is a student with either and F-1, F-2, J-1, J-2, or Q visa. After filing, a certificate of compliance must be acquired from the IRS Field Assistance Area Director on Form 1040-C or Form 2063. Any tax paid with Form 1040-C counts as a credit against the tax on the final return, and any overpayment will be refunded only if the final return for the year shows an overpayment.

Download the official IRS Form 1040-C PDF

On the official IRS website, you will find a link to download Form 1040-C. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 1040-C

Sources:

https://www.irs.gov/forms-pubs/about-form-1040-c

https://www.irs.gov/instructions/i1040c

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