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Department of the Treasury
Internal Revenue Service
Instructions for Form 8898

(Rev. October 2024)
Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Territory

Section references are to the Internal Revenue Code unless Worldwide gross income. Worldwide gross income means
otherwise noted. all income you received in the form of money, goods,
property, and services, including any income from sources
Future Developments outside the United States (even if you may exclude part or all
For the latest information about developments related to of it) and before any deductions, credits, or rebates.
Form 8898 and its instructions, such as legislation enacted
Example 1. You are a U.S. citizen who moved to the
after they were published, go to IRS.gov/Form8898.
CNMI in December 2023 but did not become a bona fide
What’s New resident of that territory until the 2024 tax year. You must file
Form 8898 for the 2024 tax year if your worldwide gross
Mobile friendly form version. The IRS has created a income for that year is more than $75,000.
mobile friendly form version of Form 8898 that can be
completed and submitted online. For more information, go to When and Where To File
IRS.gov/MobileFriendlyForms. File Form 8898 by the due date (including extensions) for
U.S. possession replaced with U.S. territory. We have filing Form 1040. File the form by mailing it to the following
replaced the term “possession” with “territory” throughout address.
these instructions.
Internal Revenue Service
3651 S. IH 35
General Instructions MS 4301 AUSC
Austin, TX 78741
Purpose of Form
Use Form 8898 to notify the IRS that you became or ceased Do not file Form 8898 with your tax return. Do not
to be a bona fide resident of a U.S. territory in accordance ! send your tax return to the address above.
with section 937(c). See Bona Fide Residence, later. For this CAUTION
purpose, the following are considered U.S. territories:
American Samoa, Guam, the Commonwealth of the Northern The IRS has created a mobile friendly form version of
Mariana Islands (CNMI), the Commonwealth of Puerto Rico, TIP Form 8898 that can be completed and submitted
and the U.S. Virgin Islands. online. For more information, go to IRS.gov/
MobileFriendlyForms.
Who Must File
You must file Form 8898 for the tax year in which you meet Penalty for Not Filing Form 8898
both of the following conditions. If you are required to file Form 8898 for any tax year, and you
1. Your worldwide gross income (defined later) in that tax fail to file it or do not include all the information required by
year is more than $75,000. the form or the form includes incorrect information, you may
2. You meet one of the following. be subject to a penalty of $1,000, unless it is shown that such
failure is due to reasonable cause and not willful neglect. This
a. You take a position, for U.S. tax purposes, that you is in addition to any criminal penalty that may be imposed.
became a bona fide resident of a U.S. territory after a tax year
for which you filed a U.S. income tax return as a citizen or Bona Fide Residence
resident of the United States but not as a bona fide resident
You are a bona fide resident of a U.S. territory if you:
of the territory.
• Do not have a tax home outside the territory,
b. You are a citizen or resident of the United States who • Do not have a closer connection to the United States or to
takes the position, for U.S. tax purposes, that you ceased to a foreign country than to the territory, and
be a bona fide resident of a U.S. territory after a tax year for • Meet the presence test (defined later).
which you filed an income tax return (with the IRS, the
territory tax authorities, or both) as a bona fide resident of the Special rule for members of the U.S. Armed Forces. If
territory. you are a member of the U.S. Armed Forces who qualified as
a bona fide resident of the territory in an earlier tax year, your
c. You take the position, for U.S. tax purposes, that you absence from that territory during the current tax year in
became a bona fide resident of Puerto Rico or American compliance with military orders will not affect your status as a
Samoa after a tax year for which you were required to file an bona fide resident. Likewise, being in a territory solely in
income tax return as a bona fide resident of the U.S. Virgin compliance with military orders will not qualify you as a bona
Islands, Guam, or the CNMI. fide resident of that territory.
When figuring whether your worldwide gross income Special rule for civilian spouse of active duty member
! is more than $75,000, do not include any of your of the U.S. Armed Forces. If you are the civilian spouse of
CAUTION spouse's income. If both you and your spouse are
an active duty service member, under the Military Spouses
required to file Form 8898, file a separate Form 8898 for each Residency Relief Act (MSRRA), you can choose to keep your
of you. prior residence or domicile for tax purposes (tax residence)

Sep 25, 2024 Cat. No. 39789W

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when accompanying the servicemember spouse, who is from American Samoa, the CNMI, Guam, or the U.S. Virgin
relocating under military orders, to a new military duty station Islands if you meet all of the following.
in one of the 50 states, the District of Columbia, or a U.S. • You were a bona fide resident of the territory for the 3 tax
territory. You and your spouse must have the same tax years immediately preceding the tax year of the move.
residence. If you choose to keep your prior tax residence • You did not have a tax home outside the territory or a
after such a relocation, the source of income for services closer connection to the United States or a foreign country
performed (for example, wages or self-employment) by you is than to the relevant territory during any part of the first 183
considered to be (the jurisdiction of) the prior tax residence. days of the tax year of the move.
As a result, the amount of income tax withholding (from • You are not a bona fide resident of the territory in any of the
Form(s) W-2, Wage and Tax Statement) that you are able to 3 tax years immediately following the tax year of the move.
claim on your federal return, as well as the need to file a state If you do not meet all of the above conditions, you do not
or U.S. territory return, may be affected. For more meet the tax home and closer connection tests under this
information, see: exception. Instead, you must meet the requirements
• Notice 2010-30, available at IRS.gov/irb/ explained later under Tax Home Test and Closer Connection
2010-18_IRB#NOT-2010-30; Test.
• Notice 2011-16, available at IRS.gov/irb/
2011-17_IRB#NOT-2011-16; and Year of the move from Puerto Rico. You qualify as a bona
• Notice 2012-41, available at IRS.gov/irb/ fide resident of Puerto Rico for the part of the tax year before
2012-26_IRB#NOT-2012-41. the date you moved from Puerto Rico if you meet all of the
following requirements.
You can also consult with state, local, or U.S. territory tax
authorities regarding your tax obligations under MSRRA. 1. You are a U.S. citizen.
2. You were a bona fide resident of Puerto Rico for at
Exception for the Year of the Move least 2 tax years immediately before the tax year of the move.
An exception applies to the tax home and the closer 3. In the year of the move, you:
connection tests for the tax year you moved to or from the a. Ceased to be a bona fide resident of Puerto Rico, and
territory. Under this exception, you satisfy the tax home and
the closer connection tests for the tax year of the move if you b. Ceased to have a tax home in Puerto Rico.
meet the requirements explained next. 4. You had a closer connection to Puerto Rico than to the
United States or a foreign country during the part of the tax
Also, a special exception applies to the bona fide year before the date on which you ceased to have a tax home
residence test for the tax year you moved from Puerto Rico. in Puerto Rico.
Under this exception, you satisfy the bona fide residence test
for the part of the tax year you moved from Puerto Rico if you If you do not meet all of the above requirements, you are
meet the requirements discussed later under Year of the not a bona fide resident of Puerto Rico in the year of the
move from Puerto Rico. If you qualify as a bona fide resident move under this exception. Instead, you must meet the
of Puerto Rico for the part of the tax year before the date you requirements explained next under Tax Home Test, and
moved from Puerto Rico, you ceased to be a bona fide Presence Test, later.
resident of Puerto Rico in the tax year that you moved from
Puerto Rico. Tax Home Test
Under the tax home test, you generally cannot have a tax
Example 2. You are a U.S. citizen who moved from
home outside the territory during any part of the tax year.
Puerto Rico to Florida in May 2024 and meet the
Your tax home is your regular or main place of business,
requirements to qualify as a bona fide resident of Puerto Rico
employment, or post of duty regardless of where you
for the part of the tax year before the date you moved from
maintain your family home. If you do not have a regular or
Puerto Rico. You must file Form 8898 for the 2024 tax year if
main place of business because of the nature of your work or
your worldwide gross income for that year is more than
because you are not engaged in a trade or business, then
$75,000.
your tax home is the place where you regularly live. If you do
Year of the move to the territory. You satisfy the tax home not fit either of these categories, you are considered an
and closer connection tests for the tax year you moved to the itinerant and your tax home is wherever you work.
territory if you meet all of the following.
Special rules for students and government officials.
• You were not a bona fide resident of the territory in any of
Disregard the following days when determining whether you
the 3 tax years immediately preceding the tax year of the
have a tax home outside the territory.
move.
• You did not have a tax home outside the territory or a • Days you were temporarily in the United States as a
student (see Student, later).
closer connection to the United States or a foreign country
than to the relevant territory during any part of the final 183 • Days you were in the United States serving as an elected
representative of the territory, or serving full time as an
days of the tax year of the move.
elected or appointed official or employee of the government
• You are a bona fide resident of the territory for the 3 tax
of the territory (or any of its political subdivisions).
years immediately following the tax year of the move.
If you do not meet all of the above conditions, you do not Special rule for seafarers. You will not be considered to
meet the tax home and closer connection tests under this have a tax home outside the territory solely because you are
exception. Instead, you must meet the requirements employed on a ship or other seafaring vessel that is
explained later under Tax Home Test and Closer Connection predominantly used in local and international waters. For this
Test. purpose, a vessel will be considered to be predominantly
used in local and international waters if, during the tax year,
Year of the move from the territory. You satisfy the tax the total amount of time it is used in international waters and
home and closer connection tests for the tax year you moved

2 Instructions for Form 8898 (Rev. 10-2024)

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in waters within 3 miles of the territory exceeds the total two territories, that day is counted as a day of presence in the
amount of time it is used in the territorial waters of the United territory in which you have your tax home.
States, another territory, or any foreign country. Count the following days as days of presence in the
territory for purposes of the presence test. Do not count them
Closer Connection Test as days of presence in the United States.
You meet the closer connection test if you do not have a 1. Any day you were outside the territory to receive (or to
closer connection to the United States or a foreign country accompany on a full-time basis a parent, spouse, or child
than to the U.S. territory. who is receiving) qualified medical treatment (defined later).
You are considered to have a closer connection to a For this purpose, the child must be your son, daughter,
territory than to the United States or to a foreign country if you stepchild, foster child, adopted child, or a child lawfully
have maintained more significant contacts with the placed with you for legal adoption.
territory(ies) than with the United States or foreign country. 2. Any day you were outside the territory because you left
Significant contacts that may be considered include the or were unable to return to the territory during any 14-day
following. period within which a major disaster occurred in the territory
• The location of: that was declared a disaster area by the President.
1. Your permanent home; 3. Any day you were outside the territory because you left
2. Your family; or were unable to return to the territory during any period for
which a mandatory evacuation order was in effect for the area
3. Your current social, political, cultural, professional, or in the territory where you resided.
religious affiliations;
4. Any day (up to a total of 30 days) that you are outside
4. Where you conduct your routine personal banking the relevant territory and the United States for business or
activities; personal travel, but this rule:
5. The jurisdiction in which you hold a driver's license; a. Applies only if the number of days you are considered
and present in the relevant territory exceeds the number of days
6. Charitable organizations to which you contribute. you are considered present in the United States (determined
• The place of residence you designate on forms and without regard to the rule in this section (4)), and
documents. b. Does not apply for purposes of calculating the
Your connections to the territory will be compared to the minimum 60 days of presence in the relevant territory that is
total of your connections with the United States and foreign required for the 549-day presence test (see Presence Test,
countries. Your answers to the questions on Form 8898, Part earlier).
III, will help establish the jurisdiction to which you have a Do not count the following days as days of presence in the
closer connection. United States for purposes of the presence test.
Presence Test 1. Any day you were in the United States for less than 24
hours when you were traveling between two places outside
You meet the presence test for the tax year if you meet one of the United States.
the following conditions.
2. Any day you were temporarily present in the United
1. You were present in the territory for at least 183 days States as a professional athlete to compete in a charitable
during the tax year. sports event (defined later).
2. You were present in the territory for at least 549 days 3. Any day you were temporarily in the United States as a
during the 3-year period that includes the current tax year student (defined later).
and the 2 immediately preceding tax years. During each year
of the 3-year period, you must also be present in the territory 4. Any day you were in the United States serving as an
for at least 60 days. elected representative of a territory, or serving full time as an
elected or appointed official or employee of the government
3. You were present in the United States for no more than of the territory (or any of its political subdivisions).
90 days during the tax year.
4. You had $3,000 or less of earned income from U.S. Qualified medical treatment. This is medical treatment
sources and were present for more days in the territory than provided by (or under the supervision of) a physician for an
in the United States during the tax year. See the instructions illness, injury, impairment, or physical or mental condition.
for Line 8 under Specific Instructions, later, for the definition The treatment must involve:
of earned income from U.S. sources. • A period of inpatient care (requiring an overnight stay) in a
hospital or hospice and any period immediately before or
5. You had no significant connection (defined later) to the after that inpatient care to the extent it is medically necessary,
United States during the tax year. or
If you are a nonresident alien, see Special rule for • A temporary period of inpatient care (requiring an
overnight stay) in a residential medical care facility for
! nonresident aliens, later.
CAUTION medically necessary rehabilitation services.
Days of presence in the United States or U.S. territory. You must keep records of your qualified medical
Generally, you are treated as being present in the United treatment. For details on the records you must keep, see Pub.
States or in the territory on any day that you are physically 570.
present in that location at any time during the day. If, during a Charitable sports event. A charitable sports event is one
single day, you were physically present in the United States that meets the following conditions.
and a territory, that day is counted as a day of presence in the • The main purpose is to benefit a qualified charitable
territory. If, during a single day, you were physically present in organization.

Instructions for Form 8898 (Rev. 10-2024) 3

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• The entire net proceeds go to that charitable organization. purposes on any day on which the principal purpose for using
• Volunteers perform substantially all the work. the property is to do repair or maintenance work. For more
In figuring the days of presence in the United States, you can information on determining whether the rental property was
exclude only the days on which you actually competed in a used for personal purposes, see Pub. 570.
sports event. You cannot exclude the days on which you were
Special rule for nonresident aliens. The presence test
in the United States to practice for the event, to perform
does not apply to nonresident aliens. Instead, nonresident
promotional or other activities related to the event, or to travel
aliens must meet the substantial presence test discussed in
between events.
chapter 1 of Pub. 519. In that discussion, substitute the name
For a listing of most qualified organizations, go to of the territory for “United States” and “U.S.” wherever they
TIP IRS.gov/Charities-Non-Profits. appear. Also, disregard the discussion in that chapter about a
Closer Connection to a Foreign Country.
Student. To qualify as a student, you must be, during
some part of each of 5 calendar months during the calendar
year (not necessarily consecutive): Specific Instructions
1. A full-time student at a school that has a regular Unless otherwise specified, answers to questions seeking
teaching staff, course of study, and regularly enrolled body of information for a tax year generally refer to the tax year in
students in attendance; or which you became (or ceased to be) a bona fide resident.
2. A student taking a full-time, on-farm training course
given by a school described in (1) above or a state, county, or Name and Social Security Number
local government. (SSN)
Full-time student. A full-time student is a person who is If you file a joint return, enter only the name and SSN of the
enrolled for the number of hours or courses the school spouse whose information is being reported on Form 8898. If
considers to be full-time attendance. both you and your spouse are required to file Form 8898, file
School. The term “school” includes elementary schools, a separate Form 8898 for each of you.
junior and senior high schools, colleges, universities, and
technical, trade, and mechanical schools. It does not include Address Before and After Your
on-the-job training courses, correspondence schools, and Change in Bona Fide Residence
schools offering courses only through the Internet.
Status
Significant connection. You have a significant connection
Enter the address where you lived before your bona fide
to the United States if:
residence status changed and a different address for where
• You have a permanent home (defined later) in the United
you lived after your bona fide residence status changed.
States,
• You are registered to vote in any political subdivision of the Example 3. Mr. Grey, a U.S. citizen, moved from New
United States, or York to the U.S. Virgin Islands. Mr. Grey must enter his New
• You have a spouse or child under 18 whose principal home York address under “Address before your change in bona fide
is in the United States. For this purpose: residence status” and his U.S. Virgin Islands address under
1. A spouse does not include a spouse from whom you “Address after your change in bona fide residence status.”
are legally separated under a decree of divorce or separate
Part 1—General Information
maintenance; and
2. The child must be your son, daughter, stepchild, foster Line 1
child, adopted child, or a child lawfully placed with you for Check line 1, box a or b, whichever applies, and enter the tax
legal adoption. But a child does not include: year you take the position that you became or ceased to be a
a. A child who lives in the United States with a custodial bona fide resident of a U.S. territory.
parent under a custodial decree or multiple support
Example 4. Mr. Grey, a U.S. citizen, moved from New
agreement, or
York to the U.S. Virgin Islands on March 1, 2024. To take the
b. A child who is in the United States as a student position that he became a bona fide resident of the U.S.
(defined earlier). Virgin Islands in 2024, Mr. Grey checks box a on line 1 and
Permanent home. A permanent home generally includes enters "2024" on the line provided.
accommodations such as a house, an apartment, or a
furnished room that is available at all times, continuously and Line 2
not solely for short stays. However, if you or your spouse If you are not a U.S. citizen, you are either a nonresident alien
owns the dwelling unit and rents it to someone else during or resident alien of the United States. You are considered a
the tax year, the dwelling unit is not your permanent home resident alien of the United States for U.S. tax purposes if you
unless, during that tax year, you use some part of it for meet either the green card test or the substantial presence
personal purposes for more than the greater of: test for the calendar year (January 1 through December 31).
• 14 days, or If you do not meet either of those tests, you are considered a
• 10% of the days the property is rented to others at a fair nonresident alien. For more information about these tests,
rental price. see Pub. 519.
Generally, the rental property is considered used for personal
purposes on any day it is not being rented to someone else at Line 3a
fair rental value for the entire day or is used by you, a family Enter your worldwide gross income for the tax year entered
member, or anyone else who has an interest in the property. on line 1. See Worldwide gross income, earlier.
The rental property is not considered used for personal

4 Instructions for Form 8898 (Rev. 10-2024)

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Line 3b Line 14
Average worldwide gross income. Calculate your average Your immediate family means your spouse and minor
worldwide gross income by adding together the worldwide children.
gross income for each year of the 3-year period prior to the
tax year entered on line 1. Divide the total by 3.0. Enter the Line 22
amount on line 3b. Under state law, a homestead exemption may:
The amount reported on line 3b is distinct from the 1. Protect the owner of real property from a forced sale or
seizure of the property from creditors (for example, in a
! worldwide gross income threshold amount for the bankruptcy proceeding), or
CAUTION year of the move that determines whether you must
file Form 8898. See Who Must File, earlier. 2. Provide a reduction in state or local real property taxes
to qualified homeowners.
Part II—Presence in the United States In some states, for individuals to avail themselves of these
or U.S. Territory privileges, state laws require a designation of the homestead
property, the filing or recordation of a declaration to make the
Line 4 exemption operative, or an application for the homestead tax
exemption. If either of the following applies, answer “Yes” on
If you checked line 1, box a, enter on line 4a the exact date line 22 and indicate the state in which such designation,
(month/day/year) you moved to a territory to establish bona declaration, recordation, application, or property tax
fide residence. If you checked line 1, box b, enter on line 4b exemption was made.
the exact date (month/day/year) you moved from the territory
to end bona fide residence. 1. You made a designation of homestead property or
otherwise filed or recorded a declaration concerning property
Example 5. Mr. Grey, a U.S. citizen, moved from New under a state homestead exemption law.
York to the U.S. Virgin Islands on March 1, 2024. Mr. Grey
would enter “03/01/2024” on line 4a. 2. You applied for or took a homestead tax exemption
from state or local property taxes.
Lines 5 and 6
Lines 26 and 27
See Days of presence in the United States or U.S. territory,
earlier, for information on counting days of presence in the See chapter 2 of Pub. 570 for information to determine the
territory. source of income.

Line 7 Line 28
See Significant connection, earlier. For stocks and bonds, indicate the country of origin of the
stock company or debtor, and for U.S. companies or debtors,
Line 8 the state or territory of incorporation or formation.
Earned income is wages, salaries, professional fees, and For example, if you own shares of a U.S. publicly traded
other amounts received as compensation for personal Delaware corporation, the investment is considered located
services actually rendered, including the fair market value of in the United States (that is, Delaware), even though the
all earnings paid in any medium other than cash. Professional shares of stock are stored in a safe deposit box in a foreign
fees include all fees received by an individual engaged in a country or territory.
professional occupation (such as doctor or lawyer) in the
performance of professional activities. See chapter 2 of Pub. Part IV—Source of Income
570 for information to determine if you have any earned
income from U.S. sources. Line 32
A gain is the amount you realize from a sale or exchange of
Part III—Closer Connection to the property that is more than its adjusted basis. See Pub. 544
for the definitions of amount realized and adjusted basis.
United States, Foreign Country, or
Special source rules apply to gains from dispositions
U.S. Territory ! of certain property within 10 years of becoming a
CAUTION bona fide resident of a U.S. territory. See Special
Line 9 Rules for Gains From Dispositions of Certain Property in Pub.
See Tax Home Test, earlier. 570 for more information.

Line 10
Privacy Act and Paperwork Reduction Act Notice. We
See Closer Connection Test, earlier. ask for this information to carry out the Internal Revenue laws
of the United States. Section 937(c) and its regulations
Line 11 require that you give us the information. We need it to
See Exception for the Year of the Move, earlier. determine if you are a bona fide resident of a U.S. territory. If
you do not provide this information or provide false
Lines 12 and 13 information, you may be subject to penalties. We may
See Permanent home, earlier. If you have more than one disclose this information to the Department of Justice for civil
home, your principal permanent home is ordinarily the and criminal litigation, and to cities, states, the District of
permanent home you live in most of the time. Columbia, and U.S. commonwealths and territories for use in
administering their tax laws. We may also disclose this
information to other countries under a tax treaty, to federal

Instructions for Form 8898 (Rev. 10-2024) 5

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and state agencies to enforce federal nontax criminal laws, or  The average time and expense required to complete and 
to federal law enforcement and intelligence agencies to         file this form will vary depending on individual circumstances. 
combat terrorism.                                               For the estimated averages, see the instructions for your 
  You are not required to provide the information requested     income tax return.
on a form that is subject to the Paperwork Reduction Act        If you have suggestions for making this form simpler, go to 
unless the form displays a valid OMB control number. Books      IRS.gov/FormComments, to submit your suggestions.
or records relating to a form or its instructions must be 
retained as long as their contents may become material in the 
administration of any Internal Revenue law. Generally, tax 
returns and return information are confidential, as required by 
Code section 6103.

6                                                                                 Instructions for Form 8898 (Rev. 10-2024)

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