Closer Connection Exception Checker - Form 8840

How This Works

Even if you meet the Substantial Presence Test (SPT) and would otherwise be classified as a U.S. resident alien, you may still be treated as a nonresident alien for the year if you qualify for the Closer Connection Exception under IRC Section 7701(b)(3)(B).

To qualify, you must satisfy all three conditions simultaneously. This tool walks through each condition and evaluates the key "closer connection" factors that the IRS examines.

Condition 1
Days < 183

Condition 2
Tax Home Abroad

Condition 3
Closer Connection

No Green Card

Important limitations: This exception is not available if you had a pending application for adjustment of status (Green Card) at any time during the year, or if you were present in the U.S. for 183 days or more. The exception also generally cannot be claimed based on a closer connection to two foreign countries; you may claim a closer connection to only one, except in a year when your tax home moves from one foreign country to a second (a maximum of two). - IRC Section 7701(b)(3)(C); Treas. Reg. 301.7701(b)-2(e) and (f).

Basic Information

Tax Year

Days Present in U.S. This Year

Foreign Country Claimed

Did You Meet the SPT This Year?

The exception only matters if SPT was met. Use the SPT Calculator to determine this.

Did You Have a Pending Green Card Application?

Includes a pending Form I-485 or other steps to apply for lawful permanent resident status (for example, an I-130 or I-140 filed on your behalf). IRC Sec. 7701(b)(3)(C); Treas. Reg. 301.7701(b)-2(f).

Condition 1 - Days Present in U.S.

Were you present in the United States for fewer than 183 days during the tax year?

Count every day you were physically present in the U.S., including partial days. The threshold is strict - exactly 183 days disqualifies the exception.

IRC Sec. 7701(b)(3)(B)(i)

This condition is automatically evaluated based on the days entered in Step 1. If you entered 183 or more days, Condition 1 is not met and the exception is unavailable regardless of other factors.

Condition 2 - Tax Home in a Foreign Country

You must have maintained your "tax home" in a foreign country for the entire calendar year. Your tax home is generally the location of your principal place of business or employment. If you have no fixed place of business, your tax home is your regular place of abode. - Treas. Reg. 301.7701(b)-2(c).

Did you have a principal place of business or employment in a foreign country for the entire year?

If self-employed, this is where you primarily conducted your business activities.

Treas. Reg. 301.7701(b)-2(c)(1)

If no fixed place of business: did you maintain a regular place of abode (home) in a foreign country for the entire year?

Answer "N/A" (select No) if you answered Yes above - tax home was already established through your principal place of business.

Treas. Reg. 301.7701(b)-2(c)(1)

Was your tax home in the same foreign country for which you are claiming the closer connection?

The tax home country and the closer connection country must be the same.

IRC Sec. 7701(b)(3)(B)(ii)

Condition 3 - Closer Connection Factors

You must have had a closer connection to the foreign country than to the United States during the tax year. The IRS evaluates the following factors. No single factor is determinative - the totality of facts and circumstances governs. - Treas. Reg. 301.7701(b)-2(d)(1).

Factor	Foreign Country	United States	Neither / Both Equal

The IRS looks at these factors holistically. A strong concentration of factors in the foreign country column supports the exception. No single factor is automatically determinative. The location of your permanent home and family tend to carry the most weight in practice. - Treas. Reg. 301.7701(b)-2(d)(1)(i)-(x).

Eligibility Analysis

Your Inputs

Tax year-

Days in U.S.-

Foreign country claimed-

Closer connection factors - Foreign-

Closer connection factors - U.S.-

Closer connection factors - Neither-

Complete All Steps Above

Answer all questions to receive your eligibility analysis.

Form 8840 - Key Facts

Authority: IRC Sec. 7701(b)(3)(B); Treas. Reg. 301.7701(b)-2

Filed On: Form 8840 attached to Form 1040-NR or filed standalone if no return required

Due Date: With Form 1040-NR (April 15, or June 15 if no wages subject to U.S. withholding - IRC 6072(c)); if no return is required, by the date a nonresident return would be due, including extensions (Treas. Reg. 301.7701(b)-8(c))

Penalty: No monetary penalty; a late statement means the exception is lost and all U.S. days count, unless you show by clear and convincing evidence that you took reasonable steps to comply (Treas. Reg. 301.7701(b)-8(d))

Tip: File even if you believe it is clear-cut - the IRS expects the form to be filed to formally claim the exception

Related Considerations

Treaty: If this exception does not apply, a treaty tiebreaker under the applicable U.S. income tax treaty may still achieve nonresident treatment. File Form 8833.

Two Countries: You generally cannot claim a closer connection to two foreign countries. Pick one, unless your tax home moved from one foreign country to a second during the year (Treas. Reg. 301.7701(b)-2(e)).

State Taxes: This exception addresses federal tax only. State residency rules are separate and may differ significantly.

Year of Change: If this is the year you arrived in or departed from the U.S., dual-status rules may apply instead.

tk.cpa AI Lab

Mission Privacy tk.cpa

Nothing on this page constitutes legal, tax, accounting, or professional advice, and no professional relationship is created by your use of this website. CPA Validated is an educational website for information purposes only. Information should be verified against current primary authority, including the Internal Revenue Code, Treasury regulations, IRS guidance, and applicable state or local law, before being relied upon or acted on. Calculator outputs are estimates only and may be incomplete or inaccurate depending on the facts, assumptions, and inputs used. CPA Inc. and tk.cpa disclaim liability to the fullest extent permitted by law. Full disclaimer: cpavalidated.com/disclaimer.html