U.S. Departing Alien Income Tax Return

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Instructions for Form 1040-C

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2010

Department of the Treasury
Internal Revenue Service

Instructions for
Form 1040-C
U.S. Departing Alien Income Tax Return
Section references are to the Internal
Revenue Code unless otherwise noted.

General Instructions
What’s New
Use your 2009 tax return as a guide
in figuring your 2010 tax, but be sure
to consider the following. Only some
of the amounts in the following
paragraphs have changed from 2009,
but some unchanged amounts are
also provided here for your
convenience.
Personal exemption and itemized
deduction phaseouts. For 2010,
taxpayers with AGI above a certain
amount will not lose part of their
deduction for personal exemptions
and itemized deductions. Under
current law, these phaseouts will
resume in 2011.
IRA deduction expanded. You
may be able to take an IRA deduction
if you were covered by a retirement
plan and your 2010 modified AGI is
less than $66,000 ($109,000 if a
qualifying widow(er)). If your spouse
was covered by a retirement plan, but
you were not, you may be able to
take an IRA deduction if your 2010
modified AGI is less than $177,000.
Standard mileage rates. The rate
for business use of your vehicle is
reduced to 50 cents a mile. The rate
for use of your vehicle to move is
reduced to 161/2 cents a mile. The
rate of 14 cents a mile for charitable
use is unchanged.
Alternative minimum tax (AMT)
exemption amount decreased.
The AMT exemption amount is
decreased to $33,750 ($45,000 for a
qualifying widow(er); $22,500 if
married filing separately).
Domestic production activities
income deduction. The
percentage rate for 2010 increases to
9%. However, the deduction is
reduced if you have oil-related
qualified production activities income.

Certain credits not allowed against
the AMT. The credit for child and
dependent care expenses,
nonbusiness energy property credit,
mortgage interest credit, and the
District of Columbia first-time
homebuyer credit are not allowed
against the AMT and a new tax
liability limit applies. For most people,
this limit is your regular tax minus any
tentative minimum tax.
Roth IRAs. Half of any income that
results from a rollover or conversion
to a Roth IRA from another retirement
plan in 2010 is included in income in
2011, and the other half in 2012,
unless you elect to include all of it in
2010. In addition, for any tax year
beginning after 2009, you can make a
qualified rollover contribution to a
Roth IRA regardless of the amount of
your modified AGI.
Personal casualty and theft loss
limit reduced. Each personal
casualty or theft loss is limited to the
excess of the loss over $100 (instead
of $500).
Qualified fuel cell motor vehicle
credit reduced. For qualified
vehicles with a gross vehicle weight
rating of 8,500 pounds or less that
are placed in service after 2009, the
credit allowed for the purchase is
reduced by 50%. For more
information, see the instructions for
Form 8910.
Repayment of first-time
homebuyer credit. If you claimed
the first-time homebuyer credit for a
home you bought in 2008, you
generally must begin repaying it in
2010. See Form 5405.

• The exclusion from income of up to

Expiring Tax Benefits

Reminders

The following benefits are scheduled
to expire and will not be available for
2010.
At the time these instructions
went to print, Congress was
CAUTION considering legislation that
would extend some of these items.
To find out if legislation was enacted,
and for details, go to www.irs.gov.

!

Cat. No. 11311Q

$2,400 in unemployment
compensation.
• Tax-free distributions from certain
individual retirement plans for
charitable purposes.
• Deduction for educator expenses in
figuring AGI.
• Tuition and fees deduction in
figuring AGI.
• Extra $3,000 IRA deduction for
employees of bankrupt companies.
• District of Columbia first-time
homebuyer credit (for homes
purchased after 2009).
• Waiver of minimum required
distribution (MRD) rules for IRAs and
defined contribution plans. However,
the waiver for 2009 MRDs applies
through April 1, 2010.
• Government retiree credit.
• Credit to holders of clean
renewable energy bonds issued after
2009.
• Alternative motor vehicle credit for
all qualified hybrid motor vehicles
placed in service after December 31,
2009, except for passenger
automobiles and light trucks with a
gross vehicle weight rating of 8,500
pounds or less.
• Decreased estimated tax payments
for certain small businesses.
• Certain tax benefits for Midwestern
disaster areas.
• Increased standard deduction for
real estate taxes or net disaster loss.
• Itemized deduction or increased
standard deduction for state or local
sales and excise taxes on the
purchase of a new motor vehicle.
• Itemized deduction for state and
local general sales taxes.

Former U.S. citizens and former
U.S. long-term residents. If you
expatriated in 2010, you may be
subject to income tax under section
877A on the net unrealized gain on
your property as if the property had
been sold on the day before your
expatriation date. If you are subject to
this tax, you are required to file an

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expatriation statement (Form 8854)
with your tax return for the year of
expatriation. For more details, see
Pub. 519, U.S. Tax Guide for Aliens.
Repayment of first-time
homebuyer credit. If you claimed
the first-time homebuyer credit on
your 2009 income tax return and you
sold your home or the home ceased
to be your main home in 2010, you
must repay the credit by including it
as additional tax due on Form
1040-C, line 21. For more
information, including exceptions to
this repayment requirement, see the
2009 Form 5405.

Purpose of Form
Form 1040-C is used by aliens who
intend to leave the United States or
any of its possessions to:
• Report income received or
expected to be received for the entire
tax year, and
• If required, to pay the expected tax
liability on that income.
Form 1040-C must be filed before
an alien leaves the United States or
any of its possessions. For more
information, see How To Get the
Certificate on page 3.
If you are a nonresident alien,
TIP use the 2009 Instructions for
Form 1040NR, U.S.
Nonresident Alien Income Tax
Return, to help you complete Form
1040-C.
If you are a resident alien, use
TIP the 2009 Instructions for Form
1040, U.S. Individual Income
Tax Return, to help you complete
Form 1040-C.
You can get tax forms,
instructions, and publications from the
Internal Revenue Service (IRS). See
Additional information, on this page.
Alien status rules. If you are not a
citizen of the United States, specific
rules apply to determine if you are a
resident or nonresident alien. Intent is
not a factor in determining your
residency status.
You are considered a resident
alien if you meet either the green card
test or the substantial presence test.
However, even though you may
otherwise meet the substantial
presence test, you will not be
considered a U.S. resident if you
qualify for the closer connection to a
foreign country exception or you are
able to qualify as a nonresident alien
by reason of a tax treaty. These tests
and the exception are discussed in

the instructions for Part I starting on
page 4.
Additional information. For more
information on taxation of resident
and nonresident aliens, residency
tests, and other special rules, see
Pub. 519.
In the United States, you can get
tax forms, instructions, and
publications from the IRS by calling
1-800-829-3676. You can also
download them from the IRS website
at www.irs.gov.

Treaty Benefits
If you take the position that a treaty of
the United States overrides or
modifies any provision of the Internal
Revenue Code and that position
reduces (or potentially reduces) your
tax, you may have to file Form 8833,
Treaty-Based Return Position
Disclosure Under Section 6114 or
7701(b), with your final U.S. income
tax return. See Pub. 519 for more
information.

Final Return Required
A Form 1040-C is not a final return.
You must file a final income tax return
after your tax year ends.
If you are a U.S. citizen or resident
alien on the last day of the year, you
should file Form 1040 reporting your
worldwide income. If you are not a
U.S. citizen or resident alien on the
last day of the year, you should
generally file Form 1040NR or, if
eligible, Form 1040NR-EZ, U.S.
Income Tax Return for Certain
Nonresident Aliens With No
Dependents. However, certain
individuals who were resident aliens
at the beginning of the tax year but
nonresident aliens at the end of the
tax year must file a “dual-status”
return. See Dual-status tax year on
page 4.
Any tax you pay with Form
1040-C counts as a credit against tax
on your final return. Any overpayment
shown on Form 1040-C will be
refunded only if and to the extent
your final return for the tax year
shows an overpayment.

Certificate of
Compliance
Note. The issuance of a certificate
of compliance is not a final
determination of your tax liability. If it
is later determined that you owe more
tax, you will have to pay the
additional tax due.
-2-

Form 1040-C or Form 2063. If you
are an alien, you should not leave the
United States or any of its
possessions without getting a
certificate of compliance from your
IRS Field Assistance Area Director on
Form 1040-C or Form 2063, U.S.
Departing Alien Income Tax
Statement, unless you meet one of
the Exceptions on this page.
You can file the shorter Form 2063
if you have filed all U.S. income tax
returns you were required to file, you
paid any tax due, and either of the
following applies.
• You have no taxable income for the
year of departure and for the
preceding year (if the time for filing
the earlier year’s return has not
passed).
• You are a resident alien with
taxable income for the preceding year
or for the year of departure, but the
Area Director has decided that your
leaving will not hinder collecting the
tax.
Exceptions. You do not need a
certificate of compliance if:
1. You are a representative of a
foreign government who holds a
diplomatic passport, a member of the
representative’s household, a servant
who accompanies the representative,
an employee of an international
organization or foreign government
whose pay for official services is
exempt from U.S. taxes and who has
no other U.S. source income, or a
member of the employee’s household
who has no income from U.S.
sources. However, if you signed a
waiver of nonimmigrant’s privileges
as a condition of holding both your
job and your status as an immigrant,
this exception does not apply, and
you must get a certificate.
2. You are a student, industrial
trainee, or exchange visitor, or the
spouse or child of such an individual.
To qualify for this exception, you must
have an F-1, F-2, H-3, H-4, J-1, J-2,
or Q visa. Additionally, you must not
have received any income from
sources in the United States other
than:
a. Allowances covering expenses
incident to your study or training in
the United States (including expenses
for travel, maintenance, and tuition),
b. The value of any services or
accommodations furnished incident to
such study or training,
c. Income from employment
authorized under U.S. immigration
laws, or
d. Interest on deposits, but only if
that interest is not effectively

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connected with a U.S. trade or
business.
3. You are a student, or the
spouse or child of a student, with an
M-1 or M-2 visa. To qualify, you must
not have received any income from
sources in the United States other
than:
a. Income from employment
authorized under U.S. immigration
laws, or
b. Interest on deposits, but only if
that interest is not effectively
connected with a U.S. trade or
business.
4. Any of the following apply.
a. You are on a pleasure trip and
have a B-2 visa.
b. You are on a business trip,
have a B-1 visa or a combined B-1/
B-2 visa, and do not stay in the
United States or any of its
possessions for more than 90 days
during the tax year.
c. You are passing through the
United States or any of its
possessions, including travel on a
C-1 visa or under a contract, such as
a bond agreement, between a
transportation line and the U.S.
Attorney General.
d. You are admitted on a
border-crossing identification card.
e. You do not need to carry
passports, visas, or border-crossing
identification cards because you are
(i) visiting for pleasure or (ii) visiting
for business and do not stay in the
United States or any of its
possessions for more than 90 days
during the tax year.
f. You are a resident of Canada
or Mexico who commutes frequently
to the United States to work and your
wages are subject to income tax
withholding.
g. You are a military trainee
admitted for instruction under the
Department of Defense and you will
leave the United States on official
military travel orders.
However, exception 4 does not
apply if the Area Director believes
you had taxable income during the
current tax year through your
departure date, or the preceding tax
year, and that your leaving the United
States would hinder collecting the tax.

tax returns that have not been filed.
The certificate may not be issued
more than 30 days before you leave.
If both you and your spouse are
aliens and both of you are leaving the
United States, both of you must go to
the IRS office.

How To Get the
Certificate

Please be prepared to furnish your
anticipated date of departure and
bring the following records with you if
they apply.
1. A valid passport with your alien
registration card or visa.
2. Copies of your U.S. income tax
returns filed for the past 2 years. If
you were in the United States for less
than 2 years, bring copies of the
income tax returns you filed for that
period.
3. Receipts for income taxes paid
on these returns.
4. Receipts, bank records,
canceled checks, and other
documents that prove your
deductions, business expenses, and
dependents claimed on the returns.
5. A statement from each
employer you worked for this year
showing wages paid and tax withheld.
If you are self-employed, you must
bring a statement of income and
expenses up to the date you plan to
leave.
6. Proof of any payments of
estimated tax for the past year and
the current year.
7. Documents showing any gain
or loss from the sale of personal and/
or real property, including capital
assets and merchandise.
8. Documents concerning
scholarship or fellowship grants, such
as: (a) verification of the grantor,
source, and purpose of the grant; (b)
copies of the application for, and
approval of, the grant; (c) a statement
of the amount paid, and your duties
and obligations under the grant; and
(d) a list of any previous grants.
9. Documents indicating
qualification for special tax treaty
benefits.
10. Document verifying your date of
departure from the United States,
such as an airline ticket.
11. Document verifying your U.S.
taxpayer identification number, such
as a social security card or an
IRS-issued Notice CP 565 showing
your individual taxpayer identification
number (ITIN).

To get a certificate of compliance, go
to your local IRS office at least 2
weeks before you leave the United
States and file either Form 2063 or
Form 1040-C and any other required

Note. If you are married and reside
in a community property state, also
bring the documents listed on this
page for your spouse. This applies
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whether or not your spouse requires
a certificate.
If you are filing Form 1040-C, file
an original and one copy for the tax
year in which you plan to leave. If you
are departing between January 1,
2010, and April 15, 2010, you must
also file Form 1040NR or Form 1040
for 2009, and pay any tax due.
Generally, a certificate of
compliance on Form 1040-C will be
issued without your paying tax or
posting bond if you have not received
a termination assessment. A
termination assessment is a demand
for immediate payment of income tax
for the current and immediately
preceding year.
This certificate applies to all of
your departures during the current tax
year, subject to revocation on any
later departure if the Area Director
believes your leaving would hinder
collecting the tax.
If you owe income tax and the
Area Director determines that your
departure will jeopardize the
collection of the tax, a certificate of
compliance on Form 1040-C will be
issued only when you pay the tax due
or post bond, and the certificate will
apply only to the departure for which
it is issued.
You may contact
1-800-829-1040 to obtain the
location of our field assistance
offices and tax information.

Specific Instructions
Joint return. Nonresident aliens
cannot file a joint return. Resident
aliens can file a joint return on Form
1040-C only if both of the following
apply.
1. The alien and his or her spouse
reasonably expect to be eligible to file
a joint return at the close of the tax
period for which the return is made.
2. If the tax period of the alien is
terminated, the tax period of his or
her spouse is terminated at the same
time.
If Form 1040-C is filed as a joint
return, enter both spouses’ names,
identification numbers, and passport
or alien registration card numbers in
the spaces provided on page 1 of the
form. Also, include both spouses’
income in Part III and furnish both
spouses’ information in Part I of the
form. It may be necessary to
complete a separate Part I for each
spouse.

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Identifying number. You must
enter your identifying number.
Generally, this is your social security
number (SSN).
If you do not have an SSN and are
eligible for one, get Form SS-5,
Application for a Social Security Card,
from your local Social Security
Administration (SSA) office or call the
SSA at 1-800-772-1213. You can
also download Form SS-5 from the
SSA’s website at www.socialsecurity.
gov/online/ss-5.html. You must visit
an SSA office in person and submit
your Form SS-5 along with original
documentation showing your age,
identity, immigration status, and
authority to work in the United States.
If you are an F-1 or M-1 student, you
must also show your Form I-20. If you
are a J-1 exchange visitor, you will
also need to show your Form
DS-2019. Generally, you will receive
your card about 2 weeks after the
SSA has all of the necessary
information.
If you do not have an SSN and are
not eligible to get one, you must apply
for an individual taxpayer
identification number (ITIN). For
details on how to apply for an ITIN,
see Form W-7, Application for IRS
Individual Taxpayer Identification
Number, and its instructions. Get
Form W-7 online at www.irs.gov.
Click on “Individuals,” then “Individual
Taxpayer Identification Numbers
(ITIN).” If you already have an ITIN,
enter it wherever your SSN is
requested on your tax return.
If you are required to include
another person’s SSN on your return
and that person does not have and
cannot get an SSN, enter that
person’s ITIN.
Note. An ITIN is for tax use only. It
does not entitle you to social security
benefits or change your employment
or immigration status under U.S. law.

Part I—Explanation of
Status—Resident or
Nonresident Alien
Generally, you are considered a
resident alien if you meet either the
green card test or the substantial
presence test for 2010. You are
considered a nonresident alien for the
year if you do not meet either of
these tests. For more information on
resident and nonresident alien status,
see Pub. 519.
Green card test. You are a resident
alien for tax purposes if you are a
lawful permanent resident of the

United States at any time during
2010. You are a lawful permanent
resident of the United States if you
have been given the privilege, under
U.S. immigration laws, of residing
permanently in the United States as
an immigrant. You generally have this
status if the U.S. Citizenship and
Immigration Services (USCIS) or the
Immigration and Naturalization
Service (INS) has issued you an alien
registration card, also known as a
“green card.”
Substantial presence test. You are
considered a resident alien for tax
purposes if you meet the substantial
presence test for 2010. You meet this
test if you were physically present in
the United States for at least:
• 31 days during 2010, and
• 183 days during the period 2010,
2009, and 2008, counting all the days
of physical presence in 2010, 1/3 of
the number of days of presence in
2009, and 1/6 of the number of days
in 2008.
Days of presence in the United
States. Generally, you are treated
as present in the United States on
any day that you are physically
present in the country at any time
during the day. However, you do not
count the following days of presence
in the United States for purposes of
the substantial presence test.
• Days you regularly commuted to
work in the United States from a
residence in Canada or Mexico.
• Days you were in the United States
for less than 24 hours while you were
traveling between two places outside
the United States.
• Days you were temporarily present
in the United States as a regular
member of the crew of a foreign
vessel engaged in transportation
between the United States and a
foreign country or a possession of the
United States. This rule does not
apply to any day you were otherwise
engaged in a trade or business in the
United States.
• Days you intended, but were
unable, to leave the United States
because of a medical condition or
medical problem that arose while you
were in the United States.
• Days you were an exempt
individual. In general, an exempt
individual is: (a) a foreigngovernment-related individual, (b) a
teacher or trainee, (c) a student, or
(d) a professional athlete who is
temporarily present in the United
States to compete in a charitable
sports event.
-4-

Note. If you qualify to exclude days
of presence in the United States
because you are an exempt individual
(other than a foreign-governmentrelated individual) or because of a
medical condition or problem, file
Form 8843, Statement for Exempt
Individuals and Individuals With a
Medical Condition, with your final
income tax return.
Closer connection to a foreign
country exception. Even though
you would otherwise meet the
substantial presence test, you are not
treated as having met that test for
2010 if you: (a) were present in the
United States for fewer than 183 days
during 2010, (b) establish that during
2010 you had a tax home in a foreign
country, and (c) establish that during
2010 you had a closer connection to
one foreign country in which you had
a tax home than to the United States
unless you had a closer connection to
two foreign countries.
Note. If you meet this exception, file
Form 8840, Closer Connection
Exception Statement for Aliens, with
your final income tax return.
Residence determined by tax
treaty. Even though you would
otherwise meet the substantial
presence test, you are not treated as
having met that test if you qualify as a
resident of another country within the
meaning of the tax treaty between the
United States and that other country.
Dual-status tax year. Generally, if
you are a resident alien and you
leave the United States during the
year with no intent to return, you have
a dual-status tax year and are subject
to dual-status restrictions in
completing Form 1040-C. A
dual-status tax year is one in which
you have been both a resident alien
and a nonresident alien. In figuring
your income tax liability, different U.S.
income tax rules apply to each status.
See the Form 1040NR instructions for
details.
Note. Certain resident aliens who
leave the United States during the
year with no intent to return may be
subject to tax under section 877A.
These resident aliens compute their
tax using the method prescribed
under section 877A when completing
Form 1040-C. See chapter 4 of Pub.
519 for more information.
Income effectively connected with
a U.S. trade or business —
nonresident aliens. If you are a
nonresident alien, the tax on your
income depends on whether the
income is or is not effectively

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connected with a U.S. trade or
business.
Income effectively connected with
a U.S. trade or business (including
wages earned by an employee) is
taxed at the graduated rates that
apply to U.S. citizens and resident
aliens. Income you receive as a
partner in a partnership or as a
beneficiary of an estate or trust is
considered effectively connected with
a U.S. trade or business if the
partnership, estate, or trust conducts
a U.S. trade or business.
Income from U.S. sources that is
not effectively connected with a U.S.
trade or business is generally taxed
at 30%. Your rate may be lower if the
country of which you are a resident
and the United States have a treaty
setting lower rates.
For a list of the types of income not
considered effectively connected with
a U.S. trade or business, see the
instructions for Schedule A starting
on page 6 and Schedule B on page
7. If you are a nonresident alien in the
United States to study or train, see
Pub. 519.

Part II—Exemptions
If you are a resident alien, you can
claim the same exemptions allowed
U.S. citizens on Form 1040.
If you are a nonresident alien
engaged in a trade or business in the
United States and you are a U.S.
national (American Samoan or a
Northern Mariana Islander who chose
to be a U.S. national) or a resident of
Canada, India, Mexico, or South
Korea, you can claim the same
number of exemptions you are
entitled to on Form 1040NR. All other
nonresident aliens engaged in a U.S.
trade or business can claim only one
exemption. For more details, see
Pub. 519 or the Form 1040NR
instructions.
If you are a nonresident alien not
engaged in a trade or business in the
United States, you cannot claim any
personal exemptions for income that
is not effectively connected with a
U.S. trade or business.
Line 14c, column (2). You must
enter each dependent’s SSN or ITIN.
See Identifying number on page 4.
Line 14c, column (4). Check the
box in this column if your dependent
is a qualifying child for the child tax
credit. See Pub. 501 to find out who
is a qualifying child.

Part III—Figuring Your
Income Tax
Read the descriptions on line 1 of
Form 1040-C for Groups I, II, and III
to see which group(s) applies to you.
If Group I or II applies, use lines
15-22 to figure your tax. If Group III
applies, use lines 23 and 24 to figure
your tax. If you are a nonresident
alien to which both Groups II and III
apply, use lines 15-24 to figure your
tax.
Line 16. Adjustments. If you are a
resident alien, you can take the
adjustments allowed on Form 1040.
The Form 1040 instructions have
information on adjustments you can
take. Be sure to consider the tax law
changes noted on page 1.
If you are a nonresident alien and
have income effectively connected
with a U.S. trade or business, you
can take the adjustments allowed on
Form 1040NR. See the Form
1040NR instructions. Be sure to
consider the tax law changes noted
on page 1.
If you are a nonresident alien and
all your income is not effectively
connected with a U.S. trade or
business, you cannot take any
adjustments.
Line 19. Credits. If you are a
resident alien, you can claim the
same credits as on Form 1040. If you
are a nonresident alien with income
effectively connected with a U.S.
trade or business, you can generally
claim the same credits as on Form
1040NR.
Line 21. Other taxes. Enter on line
21 any other taxes such as those
listed on this page. See the
instructions for Form 1040 or Form
1040NR for information on the
additional taxes to include on this
line.
• Self-employment tax. This tax
applies only to resident aliens. Use
Schedule SE (Form 1040), Form
1040-PR, or Form 1040-SS to figure
your self-employment tax. The
self-employment tax rate for 2010 is
15.3%. This includes a 2.9%
Medicare tax and a 12.4% social
security tax. For 2010, the maximum
amount of self-employment income
subject to social security tax is
$106,800. There is no limit on the
amount of self-employment income
subject to the Medicare tax.
• Social security and Medicare tax
on tip income not reported to
employer. If you received tips of $20
or more in any month and you did not
-5-

report the full amount to your
employer, you must generally pay this
tax. See the Form 1040 instructions
or the Form 1040NR instructions.
• Social security and Medicare tax
not withheld by employer. If you are
an employee who received wages
from an employer who did not
withhold social security and Medicare
tax from your wages, you may owe
this tax. See the Form 1040
instructions or the Form 1040NR
instructions.
• Additional tax on IRAs, other
qualified retirement plans, etc. If
you received a distribution from or
made an excess contribution to one
of these plans, you may owe this tax.
See the Form 1040 instructions or the
Form 1040NR instructions.
• Household employment taxes. If
you pay cash wages to any one
household employee in 2010, you
may owe this tax. See the Form 1040
instructions or the Form 1040NR
instructions.
• Tax on accumulation distribution
of trusts. Use Form 4970 to figure
the tax.
• Tax from recapture of
investment credit. Use Form 4255
to figure the tax.
• Tax from recapture of
low-income housing credit. Use
Form 8611 to figure the tax.
• Tax from recapture of federal
mortgage subsidy. Use Form 8828
to figure the tax.
• Tax from recapture of qualified
electric vehicle credit. For details on
how to figure the tax, see Pub. 535,
Business Expenses.
• Repayment of first-time
homebuyer credit. If you claimed the
first-time homebuyer credit on your
2009 return and you sold the home or
the home ceased to be your main
home in 2010, see Form 5405 (Rev.
December 2009). If you purchased a
home in 2008 for which you claimed
the credit, see Form 5405 (Rev.
February 2009).
Line 24. Tax. You must generally
enter 30% of the amount on line 23.
However, if you are entitled to a lower
rate or an exemption from tax
because of a treaty between your
country and the United States, attach
a statement showing your
computation of the tax. Also include
the applicable treaty article(s).
Line 28. Other payments. Include
on line 28 any of the following
payments. See the instructions for
Form 1040 or Form 1040NR for
details on other payments to include
on this line.

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• Making work pay credit. This
credit applies only to resident aliens
who had earned income from work.
Compute the credit on Schedule M,
Making Work Pay and Government
Retiree Credits.
• Earned income credit (EIC). This
credit applies only to resident aliens.
Enter any EIC that is due to you.
• Additional child tax credit to
which you are entitled.
• U.S. income tax paid at previous
departure during the tax period.
Enter any tax you paid if you
previously departed the United States
during this tax period.
• Excess social security and
RRTA tax withheld. If you had two or
more employers in 2010 who together
paid you more than $106,800 in
wages, too much social security tax
and tier 1 railroad retirement (RRTA)
tax may have been withheld. See
Pub. 505, Tax Withholding and
Estimated Tax. For 2010, the
maximum social security tax and tier
1 RRTA tax is $6,621.60.
• Credit for federal tax paid on
fuels. Use Form 4136 to figure the
credit.

Signature
Form 1040-C is not considered a
valid return unless you sign it. You
may have an agent in the United
States prepare and sign your return if
you are sick or otherwise unable to
sign. However, you must have IRS
approval to use an agent. To obtain
approval, file a statement with the
IRS office where you file Form
1040-C explaining why you cannot
sign.
If an agent (including your spouse)
signs for you, your authorization of
the signature must be filed with the
return.
Paid preparers must sign.
Generally, anyone you pay to prepare
your return must sign it in the space
provided. The preparer must also
give you a copy of the return for your
records. Someone who prepares your
return but does not charge you
should not sign your return.
If you have questions about
whether a preparer is required to sign
your return, please contact an IRS
office.

Schedule A—Income
Line 1, column (c). Enter amounts
shown as federal income tax withheld
on your Forms W-2, 1099, 1042-S,
etc. Be sure to enter the amount

withheld on the same line on which
the related income is reported.
Line 1, column (d). Resident aliens
should include income that would be
included on Form 1040, such as
wages, salaries, interest, dividends,
rents, alimony, etc.
Line 1, column (e). Enter
nonresident alien income effectively
connected with a U.S. trade or
business. Nonresident aliens should
include income that would be
included on page 1 of Form 1040NR
or Form 1040NR-EZ. This includes:
• Salaries and wages (generally
shown in box 1 of Form W-2),
• The taxable part of a scholarship or
fellowship grant,
• Business income or loss (income
that would be included on Schedule C
(Form 1040) or Schedule C-EZ
(Form 1040) as an attachment to
Form 1040NR), and
• Any other income considered to be
effectively connected with a U.S.
trade or business. See the
Instructions for Form 1040NR for
details.
Line 1, column (f). Enter
nonresident alien income from U.S.
sources that is not effectively
connected with a U.S. trade or
business, including:
• Interest, dividends, rents, salaries,
wages, premiums, annuities,
compensation, remuneration, and
other fixed or determinable annual or
periodic gains, profits, and income.
• Prizes, awards, and certain
gambling winnings. Proceeds from
lotteries, raffles, etc., are gambling
winnings. You must report the full
amount of your winnings. You cannot
offset losses against winnings and
report the difference.
• 85% of the U.S. social security
benefits you receive. This amount is
treated as U.S. source income not
effectively connected with a U.S.
trade or business and is subject to
the 30% tax rate, unless exempt or
taxed at a reduced rate under a U.S.
tax treaty. Social security benefits
include any monthly benefit under
Title II of the Social Security Act or
part of a tier 1 railroad retirement
benefit treated as a social security
benefit. They do not include any
supplemental security income (SSI)
payments.
Line 5. Include on line 5, column (d),
(e), or (f), all income you received
during the year that is exempt by
Code (see examples below). Also
include on line 5 income that is
exempt by treaty, but only if the
income is reportable in column (d) or
-6-

(e). Attach a statement that shows
the basis for the treaty exemption
(including treaty and article(s)).
Note. Do not include on line 5
income reportable in column (f) that is
exempt by treaty. Instead report
these amounts on line 1 of column (f)
and explain on the statement required
for Part III, line 24, the basis for the
reduced rate or exemption.
Be sure to include on line 5,
column (c), any amount withheld on
exempt income you are reporting on
line 5, column (d), (e), or (f). For
example, include amounts that were
withheld by a withholding agent that
was required to withhold due to lack
of documentation. However, do not
include amounts reimbursed by the
withholding agent.
Do not include on lines 1 through
4 any amount that is reportable on
line 5.
Exempt income for nonresident
aliens. The following income
received by nonresident aliens is
exempt from U.S. tax.
1. Interest on bank deposits or
withdrawable accounts with savings
and loan associations or credit unions
that are chartered and supervised
under federal or state law, or
amounts held by an insurance
company under an agreement to pay
interest on them, if the income is not
effectively connected with a U.S.
trade or business. Certain portfolio
interest on obligations issued after
July 18, 1984, is also exempt income.
2. Your personal service income
if:
a. You were in the United States
90 days or less during the tax year,
b. You received $3,000 or less for
your services, and
c. You performed the services as
an employee of or under contract with
a nonresident alien individual, foreign
partnership, or foreign corporation not
engaged in a U.S. trade or business;
or for a foreign office of a U.S.
partnership, corporation, citizen, or
resident.
3. Capital gains not effectively
connected with a U.S. trade or
business if you were in the United
States fewer than 183 days during
the tax year. Exception: Gain or loss
on the disposition of a U.S. real
property interest is not exempt.
4. U.S. bond income. Your income
from series E, EE, H, or HH U.S.
savings bonds that you bought while
a resident of the Ryukyu Islands
(including Okinawa) or the Trust

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Territory of the Pacific Islands
(Caroline and Marshall Islands).
5. Annuities you received from
qualified annuity plans or trusts if both
of the following conditions apply:
a. The work that entitles you to the
annuity was performed either (1) in
the United States for a foreign
employer and you met the conditions
under 2 earlier, or (2) outside the
United States, and
b. When the first amount was paid
as an annuity, at least 90% of the
employees covered by the plan (or by
the plan or plans that included the
trust) were U.S. citizens or residents.
6. U.S. source dividends paid by
certain foreign corporations if they are
not effectively connected with your
U.S. trade or business. See Second
exception under Dividends in chapter
2 of Pub. 519 for the definition of
foreign corporation and how to figure
the amount of excludable dividends.
Certain items of income may be
exempt from federal tax under a tax
treaty. For more details, see Pub.
901.

Schedule B—Certain
Gains and Losses From
Sales or Exchanges of
Nonresidents’ Property
Not Effectively
Connected With a U.S.
Trade or Business
If you are a nonresident alien, use
Schedule B to figure your gain or loss
from the sale or exchange of property
not effectively connected with a U.S.
trade or business. Include the
following types of income. For more
information on these types of income,
see Pub. 519 and the Instructions for
Form 1040NR.
1. Capital gains. Capital gains in
excess of capital losses if you were in
the United States at least 183 days
during the year.
Note. The gain or loss on the
disposition of a U.S. real property
interest is considered effectively
connected and should be shown in
Schedule A, column (e).
2. Income other than capital gains.
• Gains on the disposal of timber,
coal, or U.S. iron ore with a retained
economic interest.
• Gains from the sale or exchange of
patents, copyrights, secret processes
and formulas, goodwill, trademarks,
trade brands, franchises, and other

like property, or of any interest in any
such property. The gains must result
from payments for the production,
use, or disposition of the property or
interest.
Original issue discount (OID). If
you sold or exchanged the obligation,
include only the OID that accrued
while you held the obligation minus
the amount previously included in
income. If you received a payment on
the obligation, see Pub. 519.

Schedule C—Itemized
Deductions
If you are a resident alien, you can
take the deductions allowed on
Schedule A of Form 1040. See the
Schedule A (Form 1040) instructions.
Be sure to consider the tax law
changes noted on page 1.
If you are a nonresident alien and
have income effectively connected
with a U.S. trade or business, you
can take the deductions allowed on
Schedule A of Form 1040NR. See the
Schedule A (Form 1040NR)
instructions. If you do not have
income effectively connected with a
U.S. trade or business, you cannot
take any deductions.
Note. Residents of India who were
students or business apprentices may
be able to take the standard
deduction. See Pub. 519 for details.

Standard Deduction (Group I
only)
If you do not itemize your deductions,
you can take the 2010 standard
deduction listed below for your filing
status.
Standard
Deduction

Married filing jointly or
Qualifying widow(er) . . . . . . . . . . . . $11,400*
Head of household . . . . . . . . . . . . . $ 8,400*
Single or Married filing separately . . . $ 5,700*
*To these amounts, add the additional amount shown
next.

Additional amount for the elderly
or the blind. An additional standard
deduction amount of $1,100 is
allowed for a married individual
(whether filing jointly or separately) or
a qualifying widow(er) who is age 65
or older or blind in 2010 ($2,200 if the
individual is both age 65 or older and
blind, $4,400 if both spouses are age
65 or older and blind). An additional
standard deduction amount of $1,400
-7-

Lines 6 and 14
Include in the total on line 6 or line
14, whichever applies, any tax from
Form 4972, Tax on Lump-Sum
Distributions, and Form 8814,
Parents’ Election To Report Child’s
Interest and Dividends.
Also include any recapture of an
education credit. You may owe this
tax if you claimed an education credit
in an earlier year, and either tax-free
educational assistance or a refund of
qualified expenses was received in
2010 for the student. See Form 8863
for more details.

Lines 7 and 15
Include in the total on line 7 or line
15, whichever applies, any tax from
Form 6251, Alternative Minimum
Tax—Individuals.

Schedule D—Tax
Computation

Filing
Status

is allowed for an unmarried individual
(single or head of household) who is
age 65 or older or blind ($2,800 if the
individual is both age 65 or older and
blind).
Note. If you were born before
January 2, 1946, you are considered
to be age 65 or older in 2010.
Limited standard deduction for
dependents. If you can be claimed
as a dependent on another person’s
2010 return, your standard deduction
is the greater of:
• $950, or
• Your earned income plus $300 (up
to the standard deduction amount).
To this amount add any additional
amounts as explained earlier.

Disclosure, Privacy Act, and
Paperwork Reduction Act Notice.
We ask for the information on this
form to carry out the Internal
Revenue laws of the United States.
Sections 6001, 6011, 6012(a), 6851,
and their regulations require that you
give us the information. We need it to
ensure that you are complying with
these laws and to allow us to figure
and collect the right amount of tax.
Section 6109 requires filers and paid
preparers to provide their identifying
numbers.
Generally, tax returns and return
information are confidential, as
required by section 6103. However,
section 6103 allows or requires the
Internal Revenue Service to disclose
or give the information shown on your
tax return to others as described in
the Code. For example, we may
disclose your tax information to the
Department of Justice to enforce the
tax laws, both civil and criminal, and
to cities, states, the District of

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Columbia, U.S. commonwealths and
possessions to carry out their tax
laws. We may also disclose this
information to other countries under a
tax treaty, to federal and state
agencies to enforce federal nontax
criminal laws, or to federal law
enforcement and intelligence
agencies to combat terrorism. If you
do not provide the information
requested, or provide false
information, you may be subject to
penalties.
You are not required to provide the
information requested on a form that
is subject to the Paperwork Reduction
Act unless the form displays a valid

OMB control number. Books or
records relating to a form or its
instructions must be retained as long
as their contents may become
material in the administration of any
Internal Revenue law.
The time needed to complete and
file this form will vary depending on
individual circumstances. The
estimated average time is:
Recordkeeping, 2 hr., 4 min.;
Learning about the law or the form,
55 min.; Preparing the form, 3 hr.,
43 min.; and Copying, assembling,
and sending the form to the IRS, 1
hr., 11 min.

-8-

If you have comments concerning
the accuracy of these time estimates
or suggestions for making this form
simpler, we would be happy to hear
from you. You can write to the
Internal Revenue Service, Tax
Products Coordinating Committee,
SE:W:CAR:MP:T:T:SP, 1111
Constitution Ave. NW, IR-6526,
Washington, DC 20224. Do not send
the tax form to this address. Instead,
see How To Get the Certificate on
page 3.

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Instructions for Form 1040-C

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2010 Tax Rate Schedules (Groups I and II)

!

CAUTION

Do not use these Tax Rate Schedules to figure your 2009 taxes. Use only to figure your 2010 taxes.

Schedule X—Single Taxpayers (Groups I and II)
If the amount on
Schedule D line 5
or 13, is:
Over—

If the amount on
Schedule D line 5,
is:

The tax is:
of the
amount
over—

But not
over—

$0
$8,375
8,375
34,000
34,000
82,400
82,400 171,850
171,850 373,650
373,650 - - - - - -

Schedule Z—Head of Household (Group I only)

- - - - - -10%
$837.50 + 15%
4,681.25 + 25%
16,781.25 + 28%
41,827.25 + 33%
108,421.25 + 35%

$0
8,375
34,000
82,400
171,850
373,650

Over—

But not
over—

$0
11,950
45,550
117,650
190,550
373,650

$11,950
45,550
117,650
190,550
373,650
------

Schedule Y—Married Filing Joint Return
(Group I only) and Qualifying Widow
or Widower (Groups I and II)
If the amount on
Schedule D line 5
or 13, is:
Over—

But not
over—

$0
16,750
68,000
137,300
209,250
373,650

$16,750
68,000
137,300
209,250
373,650
------

of the
amount
over—
- - - - - -10%
$1,675.00 + 15%
9,362.50 + 25%
26,687.50 + 28%
46,833.50 + 33%
101,085.50 + 35%

$0
16,750
68,000
137,300
209,250
373,650

of the
amount
over—
- - - - - -10%
$1,195.00 + 15%
6,235.00 + 25%
24,260.00 + 28%
44,672.00 + 33%
105,095.00 + 35%

$0
11,950
45,550
117,650
190,550
373,650

Schedule Y—Married Filing Separate Return
(Groups I and II)

If the amount on
Schedule D line 5
or 13, is:

The tax is:

The tax is:

Over—

of the
amount
over—

But not
over—

$0
$8,375
8,375
34,000
34,000
68,650
68,650 104,625
104,625 186,825
186,825 - - - - - -

-9-

The tax is:

- - - - - -10%
$837.50 + 15%
4,681.25 + 25%
13,343.75 + 28%
23,416.75 + 33%
50,542.75 + 35%

$0
8,375
34,000
68,650
104,625
186,825