Instructions For Form 8898 (Page 2 of 4) in pdf

residence. As a result, the amount of

If you do not meet all of the above

Special rule for seafarers. You will

income tax withholding (from Form(s)

conditions, you do not meet the tax

not be considered to have a tax home

W-2, Wage and Tax Statement) that

home and closer connection tests

outside the possession solely because

you are able to claim on your federal

under this exception. Instead, you must

you are employed on a ship or other

return, as well as the need to file a

meet the requirements explained later

seafaring vessel that is predominantly

state or U.S. possession return, may be

under Tax Home Test and Closer

used in local and international waters.

affected. For more information, consult

Connection Test.

For this purpose, a vessel will be

with state, local, or U.S. possession tax

considered to be predominantly used in

Year of the move from Puerto

authorities regarding your tax

local and international waters if, during

Rico. You qualify as a bona fide

obligations under MSRRA.

the tax year, the total amount of time it

resident of Puerto Rico for the part of

is used in international waters and in

Exception for the Year of the

the tax year before the date you moved

waters within 3 miles of the possession

Move

from Puerto Rico if you meet all of the

exceeds the total amount of time it is

following requirements.

An exception applies to the tax home

used in the territorial waters of the

1. You are a U.S. citizen.

and the closer connection tests for the

United States, another possession, or

2. You were a bona fide resident of

tax year you moved to or from the

any foreign country.

Puerto Rico for at least 2 tax years

possession. Under this exception, you

Closer Connection Test

immediately before the tax year of the

satisfy the tax home and the closer

move.

You meet the closer connection test if

connection tests for the tax year of the

3. In the year of the move, you:

you do not have a closer connection to

move if you meet the requirements

a. Ceased to be a bona fide

the United States or a foreign country

explained next.

resident of Puerto Rico, and

than to the U.S. possession.

Also, a special exception applies to

b. Ceased to have a tax home in

the bona fide residence test for the tax

You are considered to have a closer

Puerto Rico.

year you moved from Puerto Rico.

connection to a possession than to the

4. You had a closer connection to

Under this exception, you satisfy the

United States or to a foreign country if

Puerto Rico than to the United States

bona fide residence test for the tax year

you have maintained more significant

or a foreign country during the part of

you moved from Puerto Rico if you

contacts with the possession(s) than

the tax year before the date on which

meet the requirements discussed later

with the United States or foreign

you ceased to have a tax home in

under Year of the move from Puerto

country. Significant contacts that may

Puerto Rico.

Rico.

be considered include:

•

The location of:

Year of the move to the possession.

If you do not meet all of the above

You satisfy the tax home and closer

1. Your permanent home,

requirements, you are not a bona fide

connection tests for the tax year you

2. Your family,

resident of Puerto Rico in the year of

moved to the possession if you meet all

3. Your current social, political,

the move under this exception. Instead,

of the following.

cultural, professional, or religious

•

you must meet the requirements

You were not a bona fide resident of

affiliations,

explained next under Tax Home Test,

the possession in any of the 3 tax years

4. Where you conduct your routine

Closer Connection Test, and Presence

immediately preceding the tax year of

personal banking activities,

Test.

the move.

5. The jurisdiction in which you hold

•

You did not have a tax home outside

a driver’s license, and

Tax Home Test

the possession during any part of the

6. Charitable organizations to which

Under the tax home test, you generally

final 183 days of the tax year of the

you contribute.

•

cannot have a tax home outside the

move.

The place of residence you designate

•

possession during any part of the tax

You are a bona fide resident of the

on forms and documents.

year. Your tax home is your regular or

possession for the 3 tax years

Your connections to the possession

main place of business, employment, or

immediately following the tax year of

will be compared to the total of your

post of duty regardless of where you

the move.

connections with the United States and

maintain your family home. If you do

If you do not meet all of the above

foreign countries. Your answers to the

not have a regular or main place of

conditions, you do not meet the tax

questions on Form 8898, Part III, will

business because of the nature of your

home and closer connection tests

help establish the jurisdiction to which

work or because you are not engaged

under this exception. Instead, you must

you have a closer connection.

in a trade or business, then your tax

meet the requirements explained later

Presence Test

home is the place where you regularly

under Tax Home Test and Closer

live. If you do not fit either of these

Connection Test.

You meet the presence test for the tax

categories, you are considered an

year if you meet one of the following

Year of the move from the

itinerant and your tax home is wherever

conditions.

possession. You satisfy the tax home

you work.

and closer connection tests for the tax

1. You were present in the

Special rules for students and

year you moved from American Samoa,

possession for at least 183 days during

the CNMI, Guam, or the U.S. Virgin

government officials. Disregard the

the tax year.

Islands if you meet all of the following.

following days when determining

2. You were present in the

•

You were a bona fide resident of the

whether you have a tax home outside

possession for at least 549 days during

possession for the 3 tax years

the possession.

the 3-year period that includes the

•

immediately preceding the tax year of

Days you were temporarily in the

current tax year and the 2 immediately

the move.

United States as a student (see

preceding tax years. During each year

•

You did not have a tax home outside

Student defined, later).

of the 3-year period, you also must be

•

the possession during any part of the

Days you were in the United States

present in the possession for at least

first 183 days of the tax year of the

serving as an elected representative of

60 days.

move.

the possession, or serving full time as

3. You were present in the United

•

You are not a bona fide resident of

an elected or appointed official or

States for no more than 90 days during

the possession in any of the 3 tax years

employee of the government of the

the tax year.

immediately following the tax year of

possession (or any of its political

4. You had $3,000 or less of earned

the move.

subdivisions).

income from U.S. sources and were

-2-

Instructions for Form 8898 (12-2011)

Instructions For Form 8898 Page 2

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