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Instructions for Form 8898

Department of the Treasury

Internal Revenue Service

(Rev. December 2016)

(Use with the January 2007 revision of Form 8898.)

Statement for Individuals Who Begin or End

Bona Fide Residence in a U.S. Possession

United States but not as a bona fide

Penalty for Not

Section references are to the Internal Revenue

Code unless otherwise noted.

resident of the possession.

Filing Form 8898

b. You are a citizen or resident of

Future Developments

If you are required to file Form 8898 for

the United States who takes the position

any tax year, and you fail to file it or do

For the latest information about

for U.S. tax purposes that you ceased to

not include all the information required

developments related to Form 8898 and

be a bona fide resident of a U.S.

by the form or the form includes

its instructions, such as legislation

possession after a tax year for which

incorrect information, you may be

enacted after they were published, go to

you filed an income tax return (with the

subject to a penalty of $1,000, unless it

8898.

IRS, the possession tax authorities, or

is shown that such failure is due to

both) as a bona fide resident of the

What's New

reasonable cause and not willful

possession.

neglect. This is in addition to any

c. You take the position for U.S. tax

New rule to determine bona fide res

criminal penalty that may be imposed.

purposes that you became a bona fide

idency in a possession. For tax years

Bona Fide Residence

resident of Puerto Rico or American

beginning after August 26, 2015, there

Samoa after a tax year for which you

is a new rule for purposes of

You are a bona fide resident of a U.S.

were required to file an income tax

determining whether you are a bona fide

possession if you:

return as a bona fide resident of the

resident of a possession. The new rule

Do not have a tax home outside the

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

will generally allow you to be considered

possession,

present in the possession for any day

Do not have a closer connection to

When figuring whether your

(up to 30 days) that you are outside the

the United States or to a foreign country

worldwide gross income is more

possession and outside the United

than to the possession, and

than $75,000, do not include

States. See

Days of presence in the

CAUTION

Meet the presence test (defined

any of your spouse's income. If both you

United States or U.S.

possession, later.

later).

and your spouse are required to file

Form 8898, file a separate Form 8898

Special rule for members of the U.S.

General Instructions

for each of you.

Armed Forces. If you are a member of

the U.S. Armed Forces who qualified as

Purpose of Form

Worldwide gross income. Worldwide

a bona fide resident of the possession in

gross income means all income you

an earlier tax year, your absence from

Use Form 8898 to notify the IRS that

received in the form of money, goods,

that possession during the current tax

you became or ceased to be a bona fide

property, and services, including any

year in compliance with military orders

resident of a U.S. possession in

income from sources outside the United

will not affect your status as a bona fide

accordance with section 937(c). See

States (even if you may exclude part or

resident. Likewise, being in a

Bona Fide

Residence, later. For this

all of it) and before any deductions,

possession solely in compliance with

purpose, the following are considered

credits, or rebates.

military orders will not qualify you as a

U.S. possessions: American Samoa,

bona fide resident of that possession.

Guam, the Commonwealth of the

Example. You are a U.S. citizen

Northern Mariana Islands (CNMI), the

who moved to the CNMI in December

Special rule for civilian spouse of

Commonwealth of Puerto Rico, and the

2015 but did not become a bona fide

active duty member of the U.S.

U.S. Virgin Islands.

resident of that possession until the

Armed Forces. If you are the civilian

2016 tax year. You must file Form 8898

spouse of an active duty service

Who Must File

for the 2016 tax year if your worldwide

member, under the Military Spouses

gross income for that year is more than

You must file Form 8898 for the tax year

Residency Relief Act (MSRRA) you can

$75,000.

in which you meet both of the following

choose to keep your prior residence or

conditions:

domicile for tax purposes (tax

When and Where To File

residence) when accompanying the

1. Your worldwide gross income

File Form 8898 by the due date

servicemember spouse, who is

(defined later) in that tax year is more

(including extensions) for filing Form

relocating under military orders, to a

than $75,000, and

1040 or Form 1040NR. File the form by

new military duty station in one of the 50

2. You meet one of the following:

itself at the following address:

states, the District of Columbia, or a

a. You take a position for U.S. tax

U.S. possession. You and your spouse

Department of the Treasury

purposes that you became a bona fide

must have the same tax residence. If

resident of a U.S. possession after a tax

Internal Revenue Service Center

you choose to keep your prior tax

year for which you filed a U.S. income

Philadelphia, PA 19255-0549

residence after such a relocation, the

tax return as a citizen or resident of the

source of income for services performed

(for example, wages or

Nov 21, 2016

Cat. No. 39789W

Instructions For Form 8898 - Statement For Individuals Who Begin Or End Bona Fide Residence In A U.s. Possession - 2016

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