i1040-c--2023-01-00

Instructions for Form 1040-C

Department of the Treasury
Internal Revenue Service

(Rev. January 2023)

(Use with the January 2023 revision of Form 1040-C)
U.S. Departing Alien Income Tax Return
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
Continuous-use conversion. Form
1040-C is being converted from annual
to continuous use. As a result, Form
1040-C will not be issued annually and
will only be revised when changes are
required. References to a specific tax
year have been removed. All filers will
now make an entry at the top of the form
to identify the year, where previously
only fiscal year filers had to complete
those entries.
We will revise the instructions
annually to show inflation-adjusted
items for various Code provisions.
Digital assets. We added a new
question, line 13, Form 1040–C,
requesting information about any digital
asset(s) received, sold, exchanged, or
otherwise disposed of (or any financial
interest in any digital asset). See Digital
assets, later.
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 2023. See Standard Deduction
(Group I only), later.
Alternative minimum tax (AMT) exemption amount increased. The AMT
exemption amount is increased to
$81,300 ($126,500 if married filing
jointly or qualifying surviving spouse;
$63,250 if married filing separately). The
income level at which the AMT
exemption begins to phase out has
increased to $578,150 ($1,156,300 if
married filing jointly; $578,150 if married
filing separately).
Social security tax. For 2023, the
maximum amount of earned income
(wages and net earnings from
self-employment) subject to the social
security tax is $160,200.

Aug 29, 2023

General Instructions
Reminders

Use your 2022 tax return as a guide in
figuring your 2023 tax, but be sure to
consider the following.
Former U.S. citizens and former U.S.
long-term residents. If you expatriate
or terminate your long-term residency in
2023, you must file Form 8854, Initial
and Annual Expatriation Statement, with
your 2023 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 29.
These filers are only allowed to claim
the child tax credit to the extent
allowable on line 20.
Individual taxpayer identification
number (ITIN) renewal. ITINs that
were not included on at least one tax
return filed in the last 3 consecutive
years (2020, 2021, or 2022 for tax year
2023) expired on December 31, 2022.
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.

Cat. No. 11311Q

Social security number (SSN) required for child tax credit. Your child
must have an SSN issued before the
due date of your 2023 return (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
2023 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 2022 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 2022 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.

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.

Certificate of Compliance
The issuance of a certificate of
compliance is not a final
CAUTION 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 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.

-2-

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 your leaving the
United States would hinder collecting
the tax.

How To Get the Certificate

To get a certificate of compliance you
must obtain a sailing or departure
permit. To obtain a permit, file Form
1040-C or Form 2063 (whichever
applies) with your local IRS office before
you leave the United States.
You must make an appointment
for assistance at the local office.
CAUTION You can call 844-545-5640
between the hours of 7 a.m. and 7 p.m.
local time to make the appointment.
Depending on the time of year, some
offices may not have available
appointments within the 2 to 4 week
time frame you must file so allow
enough time to schedule your
appointment before your departure date.

!

You must also pay all the tax shown
as due on Form 1040-C and any taxes
due for past years. Refer to the
information discussed under the
heading entitled,Paying Taxes and
Obtaining Refunds, later, in this section.

Instructions for Form 1040-C (Rev. 01-2023)

It is advisable for aliens who have
been working in the United States to get
the permit from an IRS office in the area
of their employment, but it also can be
obtained from an IRS office in the area
of their departure.

When To Get a Sailing or
Departure Permit

You should get your sailing or departure
permit at least 2 weeks before you plan
to leave. You cannot apply earlier than
30 days before your planned departure
date. Do not wait until the last minute in
case there are unexpected problems.

Forms To File

If you must get a sailing or departure
permit, you must file Form 2063 or Form
1040-C. Both forms have a “certificate of
compliance” section. When the
certificate of compliance is signed by an
agent of the Field Assistance Area
Director, it certifies that your U.S. tax
obligations have been satisfied
according to available information. Your
Form 1040-C copy of the signed
certificate, or the one detached from
Form 2063, is your sailing or departure
permit.

Form 2063
This is a short form that asks for certain
information but does not include a tax
computation. The following departing
aliens can get their sailing or departure
permits by filing Form 2063:
• Aliens, whether resident or
nonresident, who have had no taxable
income for the tax year up to and
including the date of departure and for
the preceding year, if the period for filing
the income tax return for that year has
not expired.
• Resident aliens who have received
taxable income during the tax year or
preceding year and whose departure
will not hinder the collection of any tax.
However, if the IRS has information
indicating that the aliens are leaving to
avoid paying their income tax, they must
file a Form 1040-C.
Aliens in either of these categories
who have not filed an income tax return
or paid income tax for any tax year must
file the return and pay the income tax
before they can be issued a sailing or
departure permit on Form 2063. The
sailing or departure permit detached
from Form 2063 can be used for all
departures during the current year.
However, the IRS may cancel the sailing
or departure permit for any later
departure if it believes the collection of

income tax is jeopardized by that later
departure.

Form 1040-C
If you must get a sailing or departure
permit and you do not qualify to file
Form 2063, you must file Form 1040-C.
Ordinarily, all income received or
reasonably expected to be received
during the tax year up to and including
the date of departure must be reported
on Form 1040-C and the tax on it must
be paid. When you pay any tax shown
as due on the Form 1040-C, and you file
all returns and pay all tax due for
previous years, you will receive a sailing
or departure permit.
The IRS may permit you to

TIP furnish a bond guaranteeing

payment instead of paying the
taxes for certain years. The sailing or
departure permit issued under the
conditions in this paragraph is only for
the specific departure for which it is
issued.
Lawful permanent resident
aliens (green card holders) with
CAUTION no definite plans to return to the
United States must notify the
Department of Homeland Security of
their termination of residency and file
Form 8854, Initial and Annual
Expatriation Information Statement, if
they:

!

• Plan to surrender their green card,
and
• Have been a lawful permanent
resident in at least 8 taxable years
during the previous 15 taxable years,
including the taxable year during which
they surrender their green card.
See the Expatriation Tax information in
Pub. 519, for more detailed information.
Papers To Submit
Getting your sailing or departure permit
will go faster if you bring to your
appointment at the IRS office papers
and documents related to your income
and your stay in the United States. Bring
the following records with you if they
apply:
• Your passport and alien registration
card or visa.
• 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 the income tax
returns you filed for that period.
• Receipts for income taxes paid on
these returns.

Instructions for Form 1040-C (Rev. 01-2023)

-3-

• Receipts, bank records, canceled
checks, and other documents that prove
your deductions, business expenses,
and dependents claimed on your
returns.
• A statement from each employer
showing wages paid and tax withheld
from January 1 of the current year to the
date of departure if you were an
employee.
• If you were self-employed, you must
bring a statement of income and
expenses up to the date you plan to
leave.
• Proof of estimated tax payments for
the past year and this year.
• Documents showing any gain or loss
from the sale of personal property,
including capital assets and
merchandise.
• Documents relating to scholarship or
fellowship grants including verification of
the grantor, source, and purpose of the
grant.
• Documents indicating you qualify for
any special tax treaty benefits claimed.
• Document verifying your date of
departure from the United States, such
as an airline ticket.
• Document verifying your U.S.
taxpayer identification number, such as
a social security card or an IRS-issued
CP 565 showing your individual
taxpayer identification number (ITIN).
If you are married and reside in
a community property state,
CAUTION also bring the above-listed
documents for your spouse. This
applies whether or not your spouse
requires a certificate.

!

Returning to the United States
If you furnish the IRS with information
showing, to the satisfaction of the IRS,
that you intend to return to the United
States and that your departure does not
jeopardize the collection of income tax,
you can get a sailing or departure permit
by filing Form 1040-C without having to
pay the tax shown on it. You must,
however, file all income tax returns that
have not yet been filed as required, and
pay all income tax that is due on these
returns.
Your Form 1040-C must include all
income received and reasonably
expected to be received during the
entire year of departure. The sailing or
departure permit issued with this Form
1040-C can be used for all departures
during the current year. However, the
IRS may cancel the sailing or departure
permit for any later departure if the

payment of income tax appears to be in
jeopardy.

Joint Return on Form 1040-C
Departing husbands and wives who are
nonresident aliens cannot file joint
returns. However, if one spouse is a
resident alien, they can file a joint return
on Form 1040-C if:
• Both spouses can reasonably be
expected to qualify to file a joint return at
the normal close of their tax year.
• The tax years of the spouses end at
the same time.

Paying Taxes and Obtaining
Refunds
Except when a bond is furnished, or the
IRS is satisfied that your departure does
not jeopardize the collection of income
tax, you must pay all tax shown as due
on the Form 1040-C at the time of filing
it. You must also pay any taxes due for
past years. If the tax computation on
Form 1040-C results in an overpayment,
there is no tax to pay at the time you file
that return. However, the IRS cannot
provide a refund at the time of
departure. If you are due a refund, you
must file Form 1040 or Form 1040-NR,
as appropriate, at the end of the tax
year.

Filing Annual U.S. Income Tax
Returns
Form 1040-C is not an annual U.S.
income tax return. If an income tax
return is required by law, that return
must be filed even though a Form
1040-C has already been filed. The tax
paid with Form 1040- C should be taken
as a credit against the tax liability for the
entire tax year on your annual U.S.
income tax return.

Identifying Number
You are generally required to enter your
social security number (SSN). To get an
SSN for a nonresident alien spouse,
apply at an office of the U.S. Social
Security Administration (SSA). For
more, information go to SSA.gov or call
800-772-121 .
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 do
so, see Form W-7 and its instructions. It
usually takes about 4–6 weeks to get an
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.
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.

!

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,
-4-

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.
If you are married and reside in
a community property state,
CAUTION 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, 2023,
and April 18, 2023, you must also file
Form 1040-NR, 1040, or 1040-SR for
2023 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-Alien-ClearanceSailing-Permit.

Specific Instructions
Joint return. Nonresident aliens
cannot file a joint return. Resident aliens

Instructions for Form 1040-C (Rev. 01-2023)

can file a joint return on Form 1040-C
only if both of the following apply.
1. The alien and their 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 their
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 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/InternationalTaxpayers/Taxpayer-IdentificationNumbers-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
2023. 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 2023. 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 2023. You meet this
test if you were physically present in the
United States for at least:
• 31 days during 2023, and
• 183 days during the period 2023,
2022, and 2021, using the following
chart.
(a)
Year

(b)
Days of
physical
presence

(c)
Multiplier

2023

1.000

2022

.333

2021

.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.

Instructions for Form 1040-C (Rev. 01-2023)

-5-

• 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 are in the United States
under a NATO visa as a member of a
force or civilian component to NATO.
However, this exception does not apply
to an immediate family member who is
present in the United States under a
NATO visa. A dependent family member
must count every day of presence for
purposes of the substantial presence
test.
• Days you were an exempt individual.
In general, an exempt individual is: (a) a
foreign- government-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.
If you qualify to exclude days of
presence in the United States
CAUTION because you are an exempt
individual (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 2023 if you: (a)
were present in the United States for
fewer than 183 days during 2023, (b)
establish that during 2023 you had a tax
home in a foreign country, and (c)
establish that during 2023 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.
If you meet this exception, file
Form 8840, Closer Connection
CAUTION 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 1040-C. See the
Instructions for Form 1040-NR for
details.
Certain resident aliens who
leave the United States during
CAUTION 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.
Digital assets. Digital assets are any
digital representations of value that are
recorded on a cryptographically secured
distributed ledger or any similar
technology. For example, digital assets
include non-fungible tokens (NFTs) and
virtual currencies, such as
cryptocurrencies and stablecoins. If a
particular asset has the characteristics
of a digital asset, it will be treated as a
digital asset for federal income tax
purposes
Check the “Yes” box next to the
question on digital assets on page 1 of
Form 1040-C if at any time during 2023,
you:
• Received (as a reward, award, or
payment for property or services); or
• Sold, exchanged, gifted, or otherwise
disposed of a digital asset (or any
financial interest in any digital asset).
For example, check “Yes” if at any
time during 2023 you:
• Received digital assets as payment
for property or services provided;
• Received digital assets as a result of
a reward or award;
• Received new digital assets as a
result of mining, staking, and similar
activities;
• Received digital assets as a result of
a hard fork;
• Disposed of digital assets in
exchange for property or services;
• Disposed of a digital asset in
exchange or trade for another digital
asset;
• Sold a digital asset;
• Transferred digital assets for free
(without receiving any consideration) as
a bona fide gift; or
• Otherwise disposed of any other
financial interest in a digital asset.
You have a financial interest in a
digital asset if you are the owner of
record of a digital asset, or have an
ownership stake in an account that
holds one or more digital assets,
-6-

including the rights and obligations to
acquire a financial interest, or you own a
wallet that holds digital assets.
The following actions or transactions
in 2023, alone, generally don’t require
you to check “Yes”:
• Holding a digital asset in a wallet or
account;
• Transferring a digital asset from one
wallet or account you own or control to
another wallet or account that you own
or control; or
• Purchasing digital assets using U.S.
or other real currency, including through
the use of electronic platforms such as
PayPal and Venmo.
Do not leave the question
unanswered. You must answer “Yes” or
“No” by checking the appropriate box.
For more information, go to IRS.gov/
virtualcurrencyfaqs.
How to report digital assets
transactions. If you disposed of any
digital asset in 2023, that you held as a
capital asset, through a sale, exchange,
gift, or transfer, check “Yes” and use
Form 8949 to calculate your capital gain
or loss and report that gain or loss on
Schedule D (Form 1040).
If you received any digital asset as
compensation for services or disposed
of any digital asset that you held for sale
to customers in a trade or business, you
must report the income as you would
report other income of the same type
(for example, W-2 wages on Form
1040 -C, Schedule A, line 1).

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 Form 1040 or the Instructions for
Form 1040-NR.
Line 15, column (b). You must enter
each dependent's SSN or ITIN. See
Identifying number, earlier.
Line 15, 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 16 through 23 to
figure your tax. If Group III applies, use

Instructions for Form 1040-C (Rev. 01-2023)

lines 24 and 25 to figure your tax. If you
are a nonresident alien to which both
Groups II and III apply, use lines 16
through 25 to figure your tax.
Line 17. Adjustments. If you are a
resident alien, you can take the
adjustments allowed on Form 1040 or
1040-SR. The 2022 Instructions for
Form 1040 have 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 17
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.
Excess business losses for
noncorporate taxpayers are limited to
tax years beginning after 2020 and
before 2029. Also, excess business
losses are now computed without
regard to any deduction allowed under
section 172 or 199A and without regard
to any deductions, gross income, or
gains attributable to any trade or
business of performing services as an
employee. See Form 461 and its
instructions for more information.
The CARES Act repealed the

TIP 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 20. 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 22. Other taxes. Enter on line 22
any other taxes such as those listed
below. Also use the 2022 Instructions for
Form 1040 or the 2022 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 2023 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
2023, the maximum amount of
self-employment income subject to the
social security tax is $160,200. There is
no limit on the amount of
self-employment income subject to the
Medicare tax.
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 Form 1040 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
Form 1040 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.

Instructions for Form 1040-C (Rev. 01-2023)

-7-

• 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 Form 1040 or the
Instructions for Form 1040-NR.
• Household employment taxes. If
you pay cash wages to any one
household employee in 2023, you may
owe this tax. See the Instructions for
Form 1040 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 homebuyer credit,
see the Instructions for Form 5405.
Line 25. Tax. Generally, you must enter
30% of the amount on line 24. 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 29. Other payments. Include on
line 29 any of the following payments.
See the Instructions for Form 1040 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 2023, 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 29. You are only allowed to claim the

railroad retirement benefit treated as a
social security benefit. They do not
include any supplemental security
income (SSI) payments.

child tax credit to the extent allowable
on line 20.
• 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 2023 who together paid
you more than $160,200 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.

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, next).

Signature

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.

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/QuestionsAnd-Answers-For-The-AdditionalMedicare-Tax.

Alimony or separate
maintenance received pursuant
CAUTION 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 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 (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
-8-

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 25, 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.

Instructions for Form 1040-C (Rev. 01-2023)

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.

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, 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.
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 2022
Instructions for Form 4684.
Line 2. Add the amounts in columns
(b) and (d) of line 1. Enter the total here

Instructions for Form 1040-C (Rev. 01-2023)

-9-

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 2023 standard
deduction listed below for your filing
status.
Filing
Status
Married filing jointly or
Qualifying surviving spouse . .
Head of household . . . . . . . .
Single or Married filing
separately . . . . . . . . . . . . .

Standard
Deduction
$27,700*
$20,800*
$13,850*

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

Additional amount for the elderly or
the blind. An additional standard
deduction amount of $1,500 is allowed
for a married individual (whether filing
jointly or separately) or a qualifying
surviving spouse who is age 65 or older
or blind in 2023 ($3,000 if the individual
is both age 65 or older and blind, $6,000
if both spouses are age 65 or older and
blind).
An additional standard deduction
amount of $1,850 is allowed for an
unmarried individual (single or head of
household) who is age 65 or older or
blind ($3,700 if the individual is both age
65 or older and blind).
Note. If you were born before
January 2, 1959, you are considered to
be age 65 or older in 2023.
Your standard deduction is zero
if (a) your spouse itemizes on a
CAUTION separate return, or (b) you were
a dual-status alien and you do not elect
to be taxed as a resident alien for 2023.

!

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
2022 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:

• $81,300 if single or head of

household;
• $126,500 if married filing jointly or a
qualifying surviving spouse
• $63,250 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.
Go to IRS.gov/OrderForms to
order current and prior-year
forms and instructions. Your
order should arrive within 10 business
days.
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.
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 in languages

TIP other than English, go to
IRS.gov/MyLanguage.

Tax questions. If you have a

TIP tax question not answered by

this publication, go to IRS.gov/
Individuals/International-Taxpayers.
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 (including shortened
links), telephone calls, or social media
channels to request or verify 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 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.
Protect yourself from suspicious
emails or phishing schemes.
Phishing is the creation and use of email
and websites designed to mimic
legitimate business emails and
websites. The most common form is
sending an email to a user falsely
claiming to be an established legitimate
enterprise in an attempt to scam the
user into surrendering private
information that will be used for identity
theft.
The IRS doesn't initiate contact with
taxpayers via emails. Also, the IRS
doesn't request detailed personal
information through email or ask
taxpayers for the PIN numbers,
passwords, or similar secret access
information for their credit card, bank, or
other financial accounts.
If you receive an unsolicited email
claiming to be from the IRS, forward the
message to [email protected]. You may
also report misuse of the IRS name,
logo, forms, or other IRS property to the
Treasury Inspector General for Tax
Administration toll free at 800-366-4484.
People who are deaf, hard of hearing, or
have a speech disability and who have
access to TTY/TDD equipment can call
800-877-8339. You can forward
suspicious emails to the Federal Trade
Commission (FTC) at [email protected] or
report them at ftc.gov/complaint. You
can contact them at www.ftc.gov/idtheft
or 877-IDTHEFT (877-438-4338). If you
have been the victim of identity theft,
-10-

see www.IdentityTheft.gov and Pub.
5027. People who are deaf, hard of
hearing, or have a speech disability and
who have access to TTY/TDD
equipment can call 866-653-4261. Visit
IRS.gov and enter “identity theft” in the
search box to learn more about identity
theft and how to reduce your risk.

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 for 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.
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/Contact-Us.
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

Instructions for Form 1040-C (Rev. 01-2023)

updates and guidance, TAS programs,
and ways to let TAS know about
systemic problems you’ve seen in your
practice.
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.
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 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

Instructions for Form 1040-C (Rev. 01-2023)

-11-

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
Form 1040 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.

2023 Tax Rate Schedules (Groups I and II)

!

CAUTION

Do not use these Tax Rate Schedules to figure your 2022 taxes. Use only to figure your 2023 taxes.
Schedule X—Single Taxpayers
(Groups I and II)

If the
amount
on
Schedule
D, line 3
or 9, is:
Over—
     $0
  11,000
 44,725
95,375
182,100
231,250
578,125

The tax is:
But not
over—
11,000
44,725
95,375
182,100
231,250
578,125
------

- - - - - - - - - 10%
$1,100.00 + 12%
5,147.00 + 22%
16,290.00 + 24%
37,104.00 + 32%
52,832.00 + 35%
174,238.25 + 37%

Schedule Z—Head of Household
(Group I only)

of the
amount
over—
$0
11,000
44,725
95,375
182,100
231,250
578,125

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

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

The tax is:

Over—
     $0
22,000
89,450
190,750
364,200
462,500
693,750

22,000
89,450
190,750
364,200
462,500
693,750
------

- - - - - - - - - - 10%
$2,200.00 + 12%
10,294.00 + 22%
32,580.00 + 24%
74,208.00 + 32%
105,664.00 + 35%
186,601.50 + 37%

of the
amount
over—
$0
22,000
89,450
190,750
364,200
462,500
693,750

of the
amount
over—

But not
over—

Over—
    $0
15,700
59,850
95,350
182,100
231,250
578,100

Schedule Y—Married Filing Joint Return
(Group I only) and Qualifying Surviving Spouse
(Groups I and II)

The tax is:

$15,700
 59,850
 95,350
182,100
231,250
578,100
------

 - - - - - - - - - 10%
$1,570.00 + 12%
6,868.00 + 22%
14,678.00 + 24%
35,498.00 + 32%
51,226.00 + 35%
172,623.50 + 37%

$0
15,700
59,850
95,350
182,100
231,250
578,100

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

If the amount on
Schedule D, line 3 or 9, is:
Over—
   $0
11,000
44,725
95,375
182,100
231,250
346,875

-12-

The tax is:

But not
over—
$11,000
44,725
95,375
182,100
231,250
346,875
------

- - - - - - - - - - 10%
$1,100.00 + 12%
5,147.00 + 22%
16,290.00 + 24%
37,104.00 + 32%
52,832.00 + 35%
$93,300.75 + 37%

of the
amount
over—
$0
11,000
44,725
95,375
182,100
231,250
346,875

Instructions for Form 1040-C (Rev. 01-2023)