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self-employment) by you is considered

and closer connection tests for the tax

work or because you are not engaged in

to be (the jurisdiction of) the prior tax

year you moved from American Samoa,

a trade or business, then your tax home

residence. As a result, the amount of

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

is the place where you regularly live. If

income tax withholding (from Form(s)

Islands if you meet all of the following.

you do not fit either of these categories,

W-2, Wage and Tax Statement) that you

You were a bona fide resident of the

you are considered an itinerant and your

are able to claim on your federal return,

possession for the 3 tax years

tax home is wherever you work.

as well as the need to file a state or U.S.

immediately preceding the tax year of

Special rules for students and gov

possession return, may be affected. For

the move.

ernment officials. Disregard the

more information see:

You did not have a tax home outside

following days when determining

Notice 2010-30 available at

the possession during any part of the

whether you have a tax home outside

first 183 days of the tax year of the

the possession.

Notice 2011-16 available at

move.

Days you were temporarily in the

You are not a bona fide resident of

United States as a student (see

Student

Notice 2012-41 available at

the possession in any of the 3 tax years

defined, later).

immediately following the tax year of the

Days you were in the United States

move.

You can also consult with state, local,

serving as an elected representative of

or U.S. possession tax authorities

If you do not meet all of the above

the possession, or serving full time as

regarding your tax obligations under

conditions, you do not meet the tax

an elected or appointed official or

MSRRA.

home and closer connection tests under

employee of the government of the

this exception. Instead, you must meet

possession (or any of its political

Exception for the

the requirements explained later under

subdivisions).

Year of the Move

Tax Home Test

and

Closer Connection

Special rule for seafarers. You will

Test.

An exception applies to the tax home

not be considered to have a tax home

Year of the move from Puerto

and the closer connection tests for the

outside the possession solely because

Rico. You qualify as a bona fide

tax year you moved to or from the

you are employed on a ship or other

resident of Puerto Rico for the part of

possession. Under this exception, you

seafaring vessel that is predominantly

the tax year before the date you moved

satisfy the tax home and the closer

used in local and international waters.

from Puerto Rico if you meet all of the

connection tests for the tax year of the

For this purpose, a vessel will be

following requirements.

move if you meet the requirements

considered to be predominantly used in

explained next.

local and international waters if, during

1. You are a U.S. citizen.

the tax year, the total amount of time it is

2. You were a bona fide resident of

Also, a special exception applies to

used in international waters and in

Puerto Rico for at least 2 tax years

the bona fide residence test for the tax

waters within 3 miles of the possession

immediately before the tax year of the

year you moved from Puerto Rico.

exceeds the total amount of time it is

move.

Under this exception, you satisfy the

used in the territorial waters of the

bona fide residence test for the tax year

3. In the year of the move, you:

United States, another possession, or

you moved from Puerto Rico if you meet

any foreign country.

a. Ceased to be a bona fide resident

the requirements discussed later under

of Puerto Rico, and

Year of the move from Puerto

Rico.

Closer Connection Test

b. Ceased to have a tax home in

Year of the move to the possession.

Puerto Rico.

You meet the closer connection test if

You satisfy the tax home and closer

4. You had a closer connection to

you do not have a closer connection to

connection tests for the tax year you

Puerto Rico than to the United States or

the United States or a foreign country

moved to the possession if you meet all

a foreign country during the part of the

than to the U.S. possession.

of the following.

tax year before the date on which you

You were not a bona fide resident of

You are considered to have a closer

ceased to have a tax home in Puerto

the possession in any of the 3 tax years

connection to a possession than to the

Rico.

immediately preceding the tax year of

United States or to a foreign country if

the move.

If you do not meet all of the above

you have maintained more significant

You did not have a tax home outside

requirements, you are not a bona fide

contacts with the possession(s) than

the possession during any part of the

resident of Puerto Rico in the year of the

with the United States or foreign

final 183 days of the tax year of the

move under this exception. Instead, you

country. Significant contacts that may

move.

must meet the requirements explained

be considered include:

You are a bona fide resident of the

next under

Tax Home

Test, and

The location of:

possession for the 3 tax years

Presence

Test.

1. Your permanent home,

immediately following the tax year of the

move.

2. Your family,

Tax Home Test

If you do not meet all of the above

3. Your current social, political,

Under the tax home test, you generally

conditions, you do not meet the tax

cultural, professional, or religious

cannot have a tax home outside the

home and closer connection tests under

affiliations,

possession during any part of the tax

this exception. Instead, you must meet

4. Where you conduct your routine

year. Your tax home is your regular or

the requirements explained later under

personal banking activities,

main place of business, employment, or

Tax Home Test

and

Closer Connection

post of duty regardless of where you

5. The jurisdiction in which you hold

Test.

maintain your family home. If you do not

a driver's license, and

have a regular or main place of

Year of the move from the

business because of the nature of your

possession. You satisfy the tax home

Instructions for Form 8898 (122016)

Instructions For Form 8898 - Statement For Individuals Who Begin Or End Bona Fide Residence In A U.s. Possession - 2016 Page 2

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