Instructions For Form 8898 (March 2006) (Page 2 of 4) in pdf

Special rule for members of the U.S.

Rico if you meet all of the following

the United States or foreign country.

Armed Forces. If a member of the U.S.

requirements.

Significant contacts that may be

Armed Forces qualified as a bona fide

considered include:

1. You are a U.S. citizen.

resident of the relevant possession in an

2. You were a bona fide resident of

1. The location of:

earlier tax year, his or her absence from

Puerto Rico for at least 2 tax years

a. Your permanent home,

that possession during the current tax

immediately before the tax year of the

b. Your family,

year in compliance with military orders will

move.

c. Your current social, political,

not affect the individual’s status as a bona

3. In the year of the move, you:

cultural, or religious affiliations,

fide resident. Likewise, being in a

a. Ceased to be a bona fide resident

d. Where you conduct your routine

possession solely in compliance with

of Puerto Rico.

personal banking activities, and

military orders will not qualify an individual

b. Ceased to have a tax home in

e. The jurisdiction in which you hold a

for bona fide residency.

Puerto Rico.

driver’s license.

4. You had a closer connection to

2. The country of residence you

Exception for the Year of the Move

Puerto Rico than to the United States or a

designate on forms and documents.

An exception applies to the tax home and

foreign country during the part of the tax

the closer connection tests for the tax

Your connections to the possession

year before the date on which 3(b) above

year you moved to or from the

will be compared to the total of your

occurred.

possession. Under this exception, you

connections with the United States and

satisfy the tax home and the closer

If you do not meet all of the above

foreign countries. Your answers to the

requirements, you are not a bona fide

connection tests for the tax year of the

questions on Form 8898, Part III, will help

resident of Puerto Rico in the year of the

move if you meet the requirements

establish the jurisdiction to which you

move under this exception. Instead, you

explained next.

have a closer connection.

must meet the requirements explained

Also, a special exception applies to the

Presence Test

next under Tax Home Test, Closer

bona fide residence test for the tax year

Connection Test, and Presence Test.

You meet the presence test for the tax

you moved from Puerto Rico. Under this

year if you meet one of the following

Tax Home Test

exception, you satisfy the bona fide

conditions.

residence test for the tax year you moved

Under the tax home test, you generally

1. You were present in the possession

from Puerto Rico if you meet the

cannot have a tax home outside the

for at least 183 days during the tax year.

requirements discussed later under Year

possession during any part of the tax

2. You were present in the United

of the move from Puerto Rico.

year. Your tax home is your regular or

States for no more than 90 days during

main place of business, employment, or

Year of the move to the possession.

the tax year.

post of duty regardless of where you

You satisfy the tax home and closer

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

maintain your family home. If you do not

connection tests for the tax year you

income from U.S. sources and were

have a regular or main place of business

moved to the possession if you meet all of

present for more days in the possession

because of the nature of your work, then

the following.

than in the United States during the tax

•

your tax home is the place where you

You were not a bona fide resident of

year. See the instructions for line 7 for the

regularly live. If you do not fit either of

the possession in any of the 3 tax years

definition of earned income from U.S.

these categories, you are considered an

immediately preceding the tax year of the

sources.

itinerant and your tax home is wherever

move.

4. You had no significant connection

•

you work.

You did not have a tax home outside

(defined on page 3) to the United States

Special rules for students and

the possession during any part of the final

during the tax year.

government officials. Disregard the

183 days of the tax year of the move.

•

following days when determining whether

You are a bona fide resident of the

If you are a nonresident alien, see

you have a tax home outside the

possession for the 3 tax years

Special rule for nonresident aliens,

possession.

immediately following the tax year of the

on page 3.

•

CAUTION

Days you were temporarily in the

move.

Days of presence in the United States

United States as a student (see Student

If you do not meet all of the above

or U.S. possession. Generally, you are

defined on page 3).

conditions, you do not meet the tax home

•

treated as being present in the United

Days you were in the United States

and closer connection tests under this

States or in the possession on any day

serving as an elected representative of

exception. Instead, you must meet the

that you are physically present in that

the possession, or serving full time as an

requirements explained later under Tax

location at any time during the day. If,

elected or appointed official or employee

Home Test and Closer Connection Test.

during a single day, you were physically

of the government of the possession (or

Year of the move from the possession.

present in the United States and a

any of its political subdivisions).

You satisfy the tax home and closer

possession, that day is counted as a day

Special rule for seafarers. You will not

connection tests for the tax year you

of physical presence in the possession. If,

be considered to have a tax home outside

moved from American Samoa, the CNMI,

during a single day, you were physically

the possession solely because you are

Guam, or the U.S. Virgin Islands if you

present in two possessions, that day is

employed on a ship or other seafaring

meet all of the following.

counted as a day of physical presence in

•

vessel that is predominantly used in local

You were a bona fide resident of the

the possession in which you have your

and international waters. For this

possession for the 3 tax years

tax home.

purpose, a vessel will be considered to be

immediately preceding the tax year of the

predominantly used in local and

Count the following days as days of

move.

•

international waters if, during the tax year,

presence in the possession for purposes

You did not have a tax home outside

the total amount of time it is used in

of the presence test. Do not count them

the possession during any part of the first

international water and in water within 3

as days of presence in the United States.

183 days of the tax year of the move.

•

miles of the possession exceeds the total

Days you were outside the possession

You are not a bona fide resident of the

amount of time it is used in the territorial

to receive (or to accompany on a full-time

possession in any of the 3 tax years

water of the United States, another

basis a parent, spouse, or child who is

immediately following the tax year of the

possession, or any foreign country.

receiving) qualified medical treatment

move.

(defined on page 3). For this purpose, the

Closer Connection Test

If you do not meet all of the above

child must be your son, daughter,

conditions, you do not meet the tax home

You meet the closer connection test if you

stepchild, foster child, adopted child, or a

and closer connection tests under this

do not have a closer connection to the

child lawfully placed with you for legal

exception. Instead, you must meet the

United States or a foreign country than to

adoption.

requirements explained later under Tax

•

the U.S. possession.

Days you were outside the possession

Home Test and Closer Connection Test.

You are considered to have a closer

because you left or were unable to return

Year of the move from Puerto Rico.

connection to a possession than to the

to the possession during any 14-day

You qualify as a bona fide resident of

United States or to a foreign country if

period within which a major disaster

Puerto Rico for the part of the tax year

you have maintained more significant

occurred in the possession that was

before the date you moved from Puerto

contacts with the possession(s) than with

declared a disaster area by the President.

-2-

Instructions For Form 8898 (March 2006) Page 2

Related Articles

Related forms

Related Categories