i1040-c--2021-00-00

2021

Instructions for Form 1040-C

Department of the Treasury
Internal Revenue Service

U.S. Departing Alien Income Tax Return
Section references are to the Internal
Revenue Code unless otherwise noted.

Future developments. For the latest
information about developments
related to Form 1040-C and its
instructions, such as legislation
enacted after they were published, go
to IRS.gov/Form1040C.

What's New
Excess business losses. The
Coronavirus Aid, Relief, and
Economic Security Act (CARES) Act
repealed the limitation on excess
business losses under section 461 of
the Internal Revenue Code for tax
years 2018, 2019, and 2020.
Beginning in 2021, you must limit the
deduction of excess business losses.
For more information, see the
instructions for Line 16 Adjustments
under Part III--Figuring Your Income
Tax.
Standard deduction. If you do not
itemize your deductions, you may be
able to take the standard deduction.
The basic standard deduction has
increased for 2021. See Standard
Deduction (Group I only), later.
Alternative minimum tax (AMT) exemption amount increased. The
AMT exemption amount is increased
to $73,600 ($114,600 if married filing
jointly or qualifying widow(er);
$57,300 if married filing separately).
The income level at which the AMT
exemption begins to phase out has
increased to $523,600 ($1,047,200 if
married filing jointly; $523,600 if
married filing separately).
Social security tax. For 2021, the
maximum amount of earned income
(wages and net earnings from
self-employment) subject to the social
security tax is $142,800.

General Instructions
Reminders

Use your 2020 tax return as a guide in
figuring your 2021 tax, but be sure to
consider the following.
Nov 25, 2020

Former U.S. citizens and former
U.S. long-term residents. If you
expatriate or terminate your long-term
residency in 2021, you must file Form
8854, Initial and Annual Expatriation
Statement, with your 2021 income tax
return. You may also 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. You
figure this tax on Form 8854. For more
details, see the Form 8854 and its
instructions at IRS.gov/Form8854.
Also, see Pub. 519, U.S. Tax Guide
for Aliens.
Social security or Medicare taxes
withheld in error. If you are a
foreign student on an F-1, J-1, M, or Q
visa, and social security or Medicare
taxes were withheld on your wages in
error, you may want to file Form 843,
Claim for Refund or Request for
Abatement, to request a refund of
these taxes. For more information,
see Nonresident Alien Students and
Refund of Taxes Withheld in Error in
chapter 8 of Pub. 519.
Child tax credit not refundable for
resident aliens electing to exclude
foreign earned income from tax.
Group I (resident alien) filers who
exclude foreign earned income from
their gross income may not claim any
additional child tax credit on line 28.
These filers are only allowed to claim
the child tax credit to the extent
allowable on line 19.
Individual taxpayer identification
number (ITIN) renewal. ITINs that
were not included on at least one tax
return filed in the last three
consecutive years (2018, 2019, or
2020 for tax year 2021) expired on
December 31, 2020. For more
information, go to IRS.gov/ITIN. If you
need to renew your ITIN, see the
Instructions for Form W-7 at IRS.gov/
FormW7.
Social security number (SSN) required for child tax credit. Your
child must have an SSN issued before
the due date of your 2021 return
Cat. No. 11311Q

(including extensions) to be claimed
as a qualifying child for the child tax
credit or additional child tax credit. If
your dependent child has an ITIN, but
not an SSN, issued before the due
date of your 2021 return (including
extensions), you may be able to claim
the new credit for other dependents
for that child.

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
• Pay the expected tax liability on that
income, if they are required to do so.
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, later.
If you are a nonresident alien,

TIP use the 2020 Instructions for

Form 1040-NR, U.S.
Nonresident Alien Income Tax Return,
to help you complete Form 1040-C.
If you are a resident alien, use

TIP the 2020 Instructions for

Forms 1040 and 1040-SR, to
help you complete Form 1040-C.
You can get tax forms, instructions,
and publications from the IRS. See
Additional information, later.
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 for tax
purposes. 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 otherwise
would 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—Explanation of
Status—Resident or Nonresident
Alien, later.
Additional information. For more
information on the taxation of resident
and nonresident aliens, residency
tests, and other special rules, see
Pub. 519.
You can download tax forms,
instructions, and publications
at IRS.gov/Forms-Pubs.
Ordering forms and
publications. Go to IRS.gov/
OrderForms to order current
and prior-year forms and instructions.
Your order should arrive within 10
business days.
People who are deaf,
hard-of-hearing, or have a
speech disability and who
have access to TTY/TDD equipment
can call 800-829-4059. Deaf or
hard-of-hearing individuals can also
contact the IRS through relay services
such as the Federal Relay Service
available at www.gsa.gov/FedRelay.
To get information, forms, and
TIP publications in Spanish, go to
IRS.gov/Espanol.
Tax questions. If you have a

TIP tax question not answered by

this publication, go to
IRS.gov/Individuals/InternationalTaxpayers.

Getting a transcript of your return.
The quickest way to get a copy of your
tax transcript is to go to IRS.gov/
Transcripts. Click on either “Get
Transcript Online” or “Get Transcript
by Mail” to order a free copy of your
transcript. If you prefer, you can order
your transcript by calling
800-908-9946.
Reporting and resolving your
tax-related identity theft issues.
• Tax-related identity theft happens
when someone steals your personal
information to commit tax fraud. Your
taxes can be affected if your SSN is
used to file a fraudulent return or to
claim a refund or credit.
• The IRS doesn’t initiate contact with
taxpayers by email, text messages,
telephone calls, or social media
channels to request personal or
financial information. This includes

requests for personal identification
numbers (PINs), passwords, or similar
information for credit cards, banks, or
other financial accounts.
• Go to IRS.gov/IdentityTheft, the IRS
Identity Theft Central webpage, for
information on identity theft and data
security protection for taxpayers, tax
professionals, and businesses. If your
SSN has been lost or stolen or you
suspect you’re a victim of tax-related
identity theft, you can learn what steps
you should take.
• Get an Identity Protection PIN (IP
PIN). IP PINs are six-digit numbers
assigned to eligible taxpayers to help
prevent the misuse of their SSNs on
fraudulent federal income tax returns.
When you have an IP PIN, it prevents
someone else from filing a tax return
with your SSN. To learn more, go to
IRS.gov/IPPIN.

The Taxpayer Advocate Service
(TAS) Is Here To Help You
What is TAS? TAS is an
independent organization within the
IRS that helps taxpayers and protects
taxpayer rights. Their job is to ensure
that every taxpayer is treated fairly
and that you know and understand
your rights under the Taxpayer Bill of
Rights.
How can you learn about your taxpayer rights? The Taxpayer Bill of
Rights describes 10 basic rights that
all taxpayers have when dealing with
the IRS. Go to
TaxpayerAdvocate.IRS.gov/ to help
you understand what these rights
mean to you and how they apply.
These are your rights. Know them.
Use them.
What can TAS do for you? TAS can
help you resolve problems that you
can’t resolve with the IRS. And their
service is free. If you qualify for their
assistance, you will be assigned to
one advocate who will work with you
throughout the process and will do
everything possible to resolve your
issue. TAS can help you if:
• Your problem is causing financial
difficulty for you, your family, or your
business;
• You face (or your business is
facing) an immediate threat of
adverse action; or
• You’ve tried repeatedly to contact
the IRS but no one has responded, or
the IRS hasn’t responded by the date
promised.
-2-

How can you reach TAS? TAS has
offices in every state, the District of
Columbia, and Puerto Rico. Your local
advocate’s number is in your local
directory and at
TaxpayerAdvocate.IRS.gov/ContactUs. You can also call them at
877-777-4778.
How else does TAS help taxpayers? TAS works to resolve
large-scale problems that affect many
taxpayers. If you know of one of these
broad issues, please report it to them
at IRS.gov/SAMS.
TAS for Tax Professionals
TAS can provide a variety of
information for tax professionals,
including tax law updates and
guidance, TAS programs, and ways to
let TAS know about systemic
problems you’ve seen in your
practice.

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 or 1040-SR
reporting your worldwide income. If
you are not a U.S. citizen or resident
alien on the last day of the year, you
should file Form 1040-NR. 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, later.
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.
Note. There are some tax items that
are not addressed on Form 1040-C or
in these instructions that must be
taken into account on your final return.
For example, if you are a Group I
(resident alien) filer, you must
reconcile any advance payments of
the premium tax credit with the
premium tax credit allowed on your
tax return. See Form 8962 Premium
Tax Credit (PTC), and its instructions,
for more information.

Form 1040-C (2021)

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.

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, explained later.
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 any of the
following applies.
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

Form 1040-C (2021)

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
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 applies.
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.
-3-

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 your
leaving the United States would
hinder collecting the tax.

How To Get the Certificate

To get a certificate of compliance, you
must go to an 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
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.
To find an IRS office, click on
Contact Your Local IRS Office and
enter your zip code to find the nearest
office.
Please note that all Taxpayer
Assistance Centers (TACs)
operate by appointment.
Services are limited and not all
services are available at every TAC
office. Call 844-545-5640 to schedule
an appointment.
Remember that you must visit an
IRS office at least 2 weeks (but no
more than 30 days) before you leave
the United States, so make sure you
call for an appointment well before
those time frames.
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 (TIN),
such as a social security card or an
IRS-issued Notice CP 565 showing
your ITIN.
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 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, 2021,
and April 15, 2021, you must also file
Form 1040-NR, 1040, or 1040-SR for
2020 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. The certificate will apply
only to the departure for which it is
issued.
For additional information, go to
IRS.gov/Individuals/InternationalTaxpayers/Departing-AlienClearance-Sailing-Permit.

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.
Identifying number. You must enter
your identifying number where
requested at the top of page 1 of Form
1040-C. Generally, this is your SSN. If
you do not have an SSN, contact the
Social Security Administration (SSA)
to find out if you are eligible for one.
You can call the SSA at
800-772-1213 (for the deaf or
hard-of-hearing, call the TTY
number, 800-325-0778).
You can also visit the SSA's
website at www.ssa.gov/
ssnumber/, and then enter
“Noncitizen” in the search box.
ITIN. If you do not have an SSN
and are not eligible to get one, you
-4-

must apply for an 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 the form and its
instructions at IRS.gov/FormW7. 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.
An ITIN is for tax use only. It
does not entitle you to social
CAUTION security benefits or change
your employment or immigration
status under U.S. law. For more
information, go to IRS.gov/Individuals/
International-Taxpayers/TaxpayerIdentification-Numbers-TIN.

!

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 2021. 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 2021.
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 its
predecessor organization, the
Immigration and Naturalization
Service) 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 2021. You meet this
test if you were physically present in
the United States for at least:
• 31 days during 2021, and

Form 1040-C (2021)

• 183 days during the period 2021,
2020, and 2019, using the following
chart.
(a)
Year

(b)
Days of
physical
presence

(c)
Multiplier

2021

1.000

2020

.333

2019

.167

(d)
Testing
days
(multiply
(b) times
(c))

Total testing days (add
column (d))

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 the substantial
presence test.
• Days you commuted to work in the
United States from a residence in
Canada or Mexico if you regularly
commuted from 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.
Note. If you qualify to exclude days of
presence in the United States
because you are an exempt individual
Form 1040-C (2021)

(other than a
foreign-government-related 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 otherwise would meet the
substantial presence test, you are not
treated as having met that test for
2021 if you: (a) were present in the
United States for fewer than 183 days
during 2021, (b) establish that during
2021 you had a tax home in a foreign
country, and (c) establish that during
2021 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
2 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. If you are a dual-resident
taxpayer, you can still claim the
benefits under an income tax treaty on
Form 8833. A dual-resident taxpayer
is one who is a resident of both the
United States and another country
under each country's tax laws. The
income tax treaty between the two
countries must contain a provision
that provides for resolution of
conflicting claims of residence
(tie-breaker rule). If you are treated as
a resident of a foreign country under a
tax treaty, you are treated as a
nonresident alien in figuring your U.S.
income tax. For purposes other than
figuring your tax, you will be treated as
a U.S. resident.
For more information, go to

TIP IRS.gov/Individuals/

International-Taxpayers/TaxTreaties.
Dual-status tax year. A dual-status
tax year is one in which you have
been both a resident alien and a
nonresident alien. The most common
dual-status tax years are the years of
arrival and departure. In figuring your
income tax liability for a dual-status
tax year, different U.S. income tax
rules apply to each status. You must
follow these rules in completing Form

-5-

1040-C. See the Instructions for Form
1040-NR for details.
Note. Certain resident aliens who
leave the United States during the
year 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 Form
8854 and its instructions. Also, 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 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—Income
and Schedule B—Certain Gains and
Losses From Sales or Exchanges by
Nonresident Aliens of Property Not
Effectively Connected With a U.S.
Trade or Business, later. If you are a
nonresident alien in the United States
to study or train, see Pub. 519.

Part II—Dependents

You may be able to claim a tax credit
for your dependents. To find out if a
person qualifies as your dependent,
and to find out if your dependent
qualifies you to take the child tax
credit or the credit for other
dependents, see the Instructions for
Forms 1040 and 1040-SR or the
Instructions for Form 1040-NR.

Line 14, column (b). You must enter
each dependent's SSN or ITIN. See
Identifying number, earlier.
Line 14, column (d). Check the
appropriate box in this column if your
dependent is a qualifying child for the
child tax credit or for the credit for
other dependents.

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
through 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
through 24 to figure your tax.
Line 16. Adjustments. If you are a
resident alien, you can take the
adjustments allowed on Form 1040 or
1040-SR. The 2020 Instructions for
Forms 1040 and 1040-SR has
information on adjustments you can
take.
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
1040-NR. See the Form 1040-NR
instructions.
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.
Adjustments that you take on
line 16 include the qualified business
income deduction and the excess
business loss adjustment figured on
Form 461.
• Qualified business income
deduction. Generally, taxpayers
other than corporations are allowed a
deduction of up to 20% of their
qualified business income from a
qualified trade or business. The
deduction is subject to multiple
limitations such as the type of trade or
business, the taxpayer's taxable
income, the amount of W-2 wages
paid with respect to the qualified trade
or business, and the unadjusted basis
of qualified property held by the trade
or business. The deduction can be
taken in addition to the standard or
itemized deductions. For more

information, see Forms 8995 and
8995-A, and their instructions.
• Excess business loss
adjustment. Beginning in 2021, and
before 2026, you must limit the
deduction of excess business losses.
For 2021, an excess business loss is
the amount of losses from trades or
businesses of a noncorporate
taxpayer that is more than the
threshold amount of $262,000
($524,000 for married taxpayers filing
a joint return). The threshold amount
is subject to inflation adjustment, and
will be published in a revenue
procedure issued each year.
Note. The CARES Act repealed the
limitation on excess business losses
under section 461(l) of the Internal
Revenue Code for tax years 2018,
2019, and 2020. If you filed a 2018,
2019, or 2020, return with the
limitation, you can file an amended tax
return to use the losses to reduce your
income.
Line 19. Credits. If you are a Group I
(resident alien) filer, you can claim the
same credits as on Form 1040 or
1040-SR. If you are a Group II
(nonresident alien with income
effectively connected with a U.S.
trade or business) filer, you can
generally claim the same credits as on
Form 1040-NR.
Line 21. Other taxes. Enter on
line 21 any other taxes such as those
listed below. Also use the 2020
Instructions for Forms 1040 and
1040-SR or the 2020 Instructions for
Form 1040-NR for information on the
additional taxes to include on this line.
• Self-employment tax. This tax
applies to resident aliens and to
nonresident aliens if an international
social security agreement in effect
determines that the nonresident alien
is covered under the U.S. social
security system. The self-employment
tax rate for 2021 is 15.3%. This
includes a 2.9% Medicare tax and a
12.4% social security tax. Use
Schedule SE (Form 1040), Form
1040-PR, or Form 1040-SS to figure
your self-employment tax. For 2021,
the maximum amount of
self-employment income subject to
the social security tax is $142,800.
There is no limit on the amount of
self-employment income subject to
the Medicare tax.

-6-

You can find more information
on international social security
agreements (also known as
totalization agreements) at IRS.gov/
Individuals/International-Taxpayers/
Totalization-Agreements.

• Social security and Medicare
taxes on tip income not reported
to employer. If you received tips of
$20 or more in any month and you did
not report the full amount to your
employer, you must generally pay
these taxes. See the Instructions for
Forms 1040 and 1040-SR or the
Instructions for Form 1040-NR.
• Social security and Medicare
taxes 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
these taxes. See the Instructions for
Forms 1040 and 1040-SR or the
Instructions for Form 1040-NR.
• Additional Medicare Tax. For
information about the Additional
Medicare Tax, see the Instructions for
Form 8959.
• Net Investment Income Tax. For
information about the Net Investment
Income Tax, see the Instructions for
Form 8960.
• 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 Instructions for Forms 1040
and 1040-SR or the Instructions for
Form 1040-NR.
• Household employment taxes. If
you pay cash wages to any one
household employee in 2021, you
may owe this tax. See the Instructions
for Forms 1040 and 1040-SR or the
Instructions for Form 1040-NR.
• 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.
• Repayment of first-time
homebuyer credit. You must repay
the first-time homebuyer credit if you
bought the home in 2008. For details
about repaying the first-time
Form 1040-C (2021)

homebuyer credit, see the Instructions
for Form 5405.
Line 24. Tax. Generally, you must
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).
You can find information on

TIP lower rates or an exemption

from tax because of a treaty
between your country and the United
States at IRS.gov/Individuals/
International-Taxpayers/Tax-TreatyTables.
Line 28. Other payments. Include
on line 28 any of the following
payments. See the Instructions for
Forms 1040 and 1040-SR or the
Instructions for Form 1040-NR for
details on other payments to include
on this line.
• Earned income credit (EIC). This
credit applies only to resident aliens.
Enter any EIC that is due to you.
• Additional child tax credit. For
information on the credit and any
changes for 2021, see Pub. 505. If
you are a Group I (resident alien) filer
and you exclude any foreign earned
income from your gross income (see
section 911 and Form 2555), you may
not claim any additional child tax
credit here on line 28. You are only
allowed to claim the child tax credit to
the extent allowable on line 19.
• Net Premium Tax Credit. For
information about the Net Premium
Tax Credit, see the Instructions for
Form 8962, and Pub. 974.
• 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 2021 who together
paid you more than $$142,800 in
wages, too much social security tax or
tier 1 railroad retirement (RRTA) tax
may have been withheld. See Pub.
505.
• Credit for federal tax paid on
fuels. Use Form 4136 to figure the
credit.

Form 1040-C (2021)

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.
Court-appointed conservator,
guardian, or other fiduciary. If you
are a court-appointed conservator,
guardian, or other fiduciary for an
individual who has to file Form
1040-C, sign your name for the
individual. File Form 56.
Paid preparers must sign.
Generally, anyone you pay to prepare
your return must sign it and include
their Preparer Tax Identification
Number (PTIN) 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.

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.
Include the amount of any Additional
Medicare Tax withheld by your
employer. For more information, visit
IRS.gov/Businesses/SmallBusinesses-Self-Employed/
Questions-And-Answers-For-TheAdditional-Medicare-Tax.
Line 1, column (d). Resident aliens
should include income that would be
included on Form 1040 or 1040-SR,
such as wages, salaries, interest,
dividends, rents, and certain alimony
received (see Caution, later).
Alimony or separate
maintenance received
CAUTION pursuant to a divorce or
separation agreement entered into on
or before December 31, 2018, is
income on your Form 1040-C unless
that agreement was changed after
December 31, 2018, to expressly

!

-7-

provide that alimony received isn't
included in your income. Alimony
received is not included in your
income if you entered into the divorce
or separation agreement after
December 31, 2018.
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 1040-NR. 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) as an attachment to
Form 1040-NR), and
• Any other income considered to be
effectively connected with a U.S.
trade or business. See the
Instructions for Form 1040-NR 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, income, and
certain alimony received (see
Caution, earlier);
• Prizes, awards, and certain
gambling winnings. Proceeds from
lotteries, raffles, etc., are gambling
winnings. You must report the full
amount of your winnings. In most
cases, 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
(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
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 information, go to
IRS.gov/Individuals/InternationalTaxpayers/Tax-Treaty-Tables. For
general information on tax treaties, go
to IRS.gov/Individuals/InternationalTaxpayers/Tax-Treaties. Also, see
Pub. 901 at IRS.gov/Forms-Pubs/
About-Publication-901.

Schedule B—Certain
Gains and Losses From
Sales or Exchanges by
Nonresident Aliens of
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,
-8-

see Pub. 519 and the Instructions for
Form 1040-NR.
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 (Form 1040). See the
Instructions for Schedule A (Form
1040).
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 (Form 1040-NR). See the
Instructions for Form 1040-NR.

Note. If you do not have income
effectively connected with a U.S.
trade or business, you cannot take
any deductions.
Residents of India who were
students or business
CAUTION apprentices may be able to
take the standard deduction. See
Pub. 519 for details.

!

Personal casualty losses. You can
claim an itemized deduction for any
personal casualty loss only to the
extent it is attributable to a federally
declared disaster.
Form 1040-C (2021)

Disaster tax relief. You can find
information on prior and the most
recent Presidentially declared
disasters at IRS.gov/
DisasterTaxRelief.
For prior declared disaster and tax
relief provided by the IRS based on
FEMA's declarations of individual
assistance, visit Around the Nation.
For more information, see the 2020
Instructions for Form 4684.
Line 2. Add the amounts in
columns (b) and (d) of line 1. Enter the
total here and on Schedule D, line 2 or
line 8, whichever applies.

Schedule D—Tax
Computation
Standard Deduction (Group I
only)

If you do not itemize your deductions,
you can take the 2021 standard
deduction listed below for your filing
status.
Filing
Status
Married filing jointly or
Qualifying widow(er) . . . . . . .
Head of household . . . . . . . .
Single or Married filing
separately . . . . . . . . . . . . .

Standard
Deduction
$25,100*
$18,800*
$12,550*

*To these amounts, add the additional amount
shown, later.

Additional amount for the elderly
or the blind. An additional standard
deduction amount of $1,350 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 2021 ($2,700 if the
individual is both age 65 or older and
blind, $5,400 if both spouses are age
65 or older and blind).
An additional standard deduction
amount of $1,700 is allowed for an
unmarried individual (single or head of
household) who is age 65 or older or
blind ($3,400 if the individual is both
age 65 or older and blind).
Note. If you were born before
January 2, 1957, you are considered
to be age 65 or older in 2021.

Form 1040-C (2021)

Your standard deduction is
zero if (a) your spouse
CAUTION itemizes on a separate return,
or (b) you were a dual-status alien and
you do not elect to be taxed as a
resident alien for 2021.

!

Lines 4 and 10

Include in the total on line 4 or line 10,
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
2021 for the student. See Form 8863
for more details.

Lines 5 and 11

Include in the total on line 5 or line 11,
whichever applies, any tax from Form
6251, Alternative Minimum
Tax—Individuals.
The AMT exemption amount is:

• $73,600 if single or head of

household;
• $114,600 if married filing jointly or a
qualifying widow(er);
• $57,300 if married filing separately.

Lines 6 and 12

Include in the total on line 6 or line 12,
the excess advance premium tax
credit repayment from line 29 of Form
8962. See the Instructions for Form
8962.

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 you to provide your
identifying number on the return.

-9-

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
Columbia, U.S. commonwealths and
possessions to carry out their tax
laws. We also may 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 average time and expenses
required to complete and file this form
will vary depending on individual
circumstances. For the estimated time
and expenses, see the Instructions for
Forms 1040 and 1040-SR or your
income tax return.
Comments. You can send us
comments from IRS.gov/
FormComments. You can write to the
Internal Revenue Service, Tax Forms
and Publications Division, 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,
earlier.

2021 Tax Rate Schedules (Groups I and II)

!

CAUTION

Do not use these Tax Rate Schedules to figure your 2020 taxes. Use only to figure your 2021 taxes.
Schedule X—Single Taxpayers
(Groups I and II)

If the amount on
Schedule D, line 3 or
9, is:

The tax is:

But not
over—

Over—
     $0
  9,950
  40,525
86,375
164,925
209,425
523,600

$9,950
 40,525
 86,375
164,925
209,425
523,600
------

Schedule Z—Head of Household
(Group I only)

If the amount on
Schedule D, line 3, is:

of the
amount
over—

- - - - - - - - - 10%
$995.00 + 12%
4,664.00 + 22%
14,751.00 + 24%
33,603.00 + 32%
47,843.00 + 35%
157,804.25 + 37%

    $0
14,200
54,200
86,350
164,900
209,400
523,600

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 3 or
9, is:
Over—
     $0
19,900
81,050
172,750
329,850
418,850
628,300

The tax is:

But not
over—
$19,900
81,050
172,750
329,850
418,850
628,300
------

- - - - - - - - - - 10%
$1,990.00 + 12%
9,328.00 + 22%
29,502.00 + 24%
67,206.00 + 32%
95,686.00 + 35%
168,993.50 + 37%

But not
over—

Over—

$0
9,950
40,525
86,375
164,925
209,425
523,600

The tax is:

$14,200
 54,200
 86,350
164,900
209,400
523,600
------

 - - - - - - - - - 10%
$1,420.00 + 12%
6,220.00 + 22%
13,293.00 + 24%
32,145.00 + 32%
46,385.00 + 35%
156,355.00 + 37%

of the
amount
over—
$0
14,200
54,200
86,350
164,900
209,400
523,600

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

If the amount on
Schedule D, line 3 or 9,
is:

of the
amount
over—

Over—

$0
19,900
81,050
172,750
329,850
418,850
628,300

   $0
9,950
40,525
86,375
164,925
209,425
314,150

-10-

The tax is:

But not
over—
$9,950
40,525
86,375
164,925
209,425
314,150
------

- - - - - - - - - - 10%
$995.00 + 12%
4,664.00 + 22%
14,751.00 + 24%
33,603.00 + 32%
47,843.00 + 35%
84,496.75 + 37%

of the
amount
over—
$0
9,950
40,525
86,375
164,925
209,425
314,150

Form 1040-C (2021)