2023 Form 1040-C - Us Departing Alien Income Tax Return

If you're a nonresident or resident alien planning to leave the United States, one of the critical forms you'll need to file is Form 1040-C, U.S. Departing Alien Income Tax Return. This form is required by the Internal Revenue Service (IRS) to ensure that all your tax obligations are fulfilled before you leave the country. It’s a necessary step for securing what is often called a "sailing permit" or "departure permit."

Who Needs to File Form 1040-C?

Form 1040-C is required for:

• Nonresident aliens who are leaving the U.S. after earning income here.
• Resident aliens who are terminating their U.S. residency, whether temporarily or permanently.

The requirement applies to most aliens who have been earning income in the U.S., with a few exceptions. For example, if you are a student, teacher, or trainee who came to the U.S. on certain types of visas and you don’t have taxable income, you might not need to file this form.

Purpose of Form 1040-C

The primary purpose of Form 1040-C is to ensure that departing aliens settle their U.S. tax liabilities before they leave. The IRS uses this form to determine if any taxes are due and to collect them before the individual exits the U.S. This prevents any potential loss of tax revenue from individuals who might otherwise leave the country without paying their taxes.

When to File Form 1040-C?

You should file Form 1040-C at least 30 days before your planned departure from the United States. The IRS recommends contacting a local IRS office early in your departure planning to avoid any delays. The form is typically filed with the IRS in person, allowing them to review your tax situation and issue a clearance, or "sailing permit," for your departure.

For the current year's Form 1040-C, click here.