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Department of the Treasury
Internal Revenue Service
Instructions for Form 8898

(Rev. October 2022)
Statement for Individuals Who Begin or End
Bona Fide Residence in a U.S. Possession

Section references are to the Internal Revenue c. You take the position for U.S. tax reasonable cause and not willful
Code unless otherwise noted. purposes that you became a bona fide neglect. This is in addition to any
resident of Puerto Rico or American criminal penalty that may be imposed.
Future Developments Samoa after a tax year for which you
For the latest information about were required to file an income tax Bona Fide Residence
developments related to Form 8898 and return as a bona fide resident of the You are a bona fide resident of a U.S.
its instructions, such as legislation U.S. Virgin Islands, Guam, or the CNMI. possession if you:
enacted after they were published, go to • Do not have a tax home outside the
IRS.gov/Form8898. When figuring whether your
possession,
! worldwide gross income is more • Do not have a closer connection to
CAUTION than $75,000, do not include
What’s New any of your spouse's income. If both you the United States or to a foreign country
Line 3a. We added new line 3a for the and your spouse are required to file than to the possession, and
taxpayer’s worldwide gross income for Form 8898, file a separate Form 8898 • Meet the presence test (defined
the tax year associated with the move. for each of you. later).
Special rule for members of the U.S.
Line 3b. We moved line 3 to line 3b. Worldwide gross income. Worldwide Armed Forces. If you are a member of
gross income means all income you the U.S. Armed Forces who qualified as
General Instructions received in the form of money, goods, a bona fide resident of the possession in
property, and services, including any an earlier tax year, your absence from
Purpose of Form income from sources outside the United that possession during the current tax
Use Form 8898 to notify the IRS that States (even if you may exclude part or year in compliance with military orders
you became or ceased to be a bona fide all of it) and before any deductions, will not affect your status as a bona fide
resident of a U.S. possession in credits, or rebates. resident. Likewise, being in a
accordance with section 937(c). See Example 1. You are a U.S. citizen possession solely in compliance with
Bona Fide Residence, later. For this who moved to the CNMI in December military orders will not qualify you as a
purpose, the following are considered 2021 but did not become a bona fide bona fide resident of that possession.
U.S. possessions: American Samoa, resident of that possession until the Special rule for civilian spouse of
Guam, the Commonwealth of the 2022 tax year. You must file Form 8898 active duty member of the U.S.
Northern Mariana Islands (CNMI), the for the 2022 tax year if your worldwide Armed Forces. If you are the civilian
Commonwealth of Puerto Rico, and the gross income for that year is more than spouse of an active duty service
U.S. Virgin Islands. $75,000. member, under the Military Spouses
Residency Relief Act (MSRRA), you can
Who Must File When and Where To File choose to keep your prior residence or
You must file Form 8898 for the tax year File Form 8898 by the due date domicile for tax purposes (tax
in which you meet both of the following (including extensions) for filing Form residence) when accompanying the
conditions. 1040. File the form by mailing it to the servicemember spouse, who is
1. Your worldwide gross income following address. relocating under military orders, to a
(defined later) in that tax year is more new military duty station in one of the 50
than $75,000. Internal Revenue Service states, the District of Columbia, or a
3651 S. IH 35 U.S. possession. You and your spouse
2. You meet one of the following. MS 4301AUSC must have the same tax residence. If
a. You take a position for U.S. tax Austin, TX 78741 you choose to keep your prior tax
purposes that you became a bona fide residence after such a relocation, the
resident of a U.S. possession after a tax source of income for services performed
year for which you filed a U.S. income Do not file Form 8898 with your
(for example, wages or
tax return as a citizen or resident of the ! tax return. Do not send your tax self-employment) by you is considered
United States but not as a bona fide CAUTION return to the address above.
to be (the jurisdiction of) the prior tax
resident of the possession. residence. As a result, the amount of
Penalty for Not
b. You are a citizen or resident of income tax withholding (from Form(s)
the United States who takes the position Filing Form 8898 W-2, Wage and Tax Statement) that you
for U.S. tax purposes that you ceased to If you are required to file Form 8898 for are able to claim on your federal return,
be a bona fide resident of a U.S. any tax year, and you fail to file it or do as well as the need to file a state or U.S.
possession after a tax year for which not include all the information required possession return, may be affected. For
you filed an income tax return (with the by the form or the form includes more information, see:
IRS, the possession tax authorities, or incorrect information, you may be • Notice 2010-30, available at
both) as a bona fide resident of the subject to a penalty of $1,000, unless it IRS.gov/irb/
possession. is shown that such failure is due to 2010-18_IRB#NOT-2010-30;

Jul 20, 2022 Cat. No. 39789W

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• Notice 2011-16, available at If you do not meet all of the above Tax Home Test
IRS.gov/irb/ conditions, you do not meet the tax
Under the tax home test, you generally
2011-17_IRB#NOT-2011-16; and home and closer connection tests under
cannot have a tax home outside the
• Notice 2012-41, available at this exception. Instead, you must meet
possession during any part of the tax
IRS.gov/irb/ the requirements explained later under
year. Your tax home is your regular or
2012-26_IRB#NOT-2012-41. Tax Home Test and Closer Connection
main place of business, employment, or
You can also consult with state, local, Test.
post of duty regardless of where you
or U.S. possession tax authorities Year of the move from the maintain your family home. If you do not
regarding your tax obligations under possession. You satisfy the tax home have a regular or main place of
MSRRA. and closer connection tests for the tax business because of the nature of your
Exception for the year you moved from American Samoa, work or because you are not engaged in
the CNMI, Guam, or the U.S. Virgin a trade or business, then your tax home
Year of the Move Islands if you meet all of the following. is the place where you regularly live. If
An exception applies to the tax home • You were a bona fide resident of the you do not fit either of these categories,
and the closer connection tests for the possession for the 3 tax years you are considered an itinerant and your
tax year you moved to or from the immediately preceding the tax year of tax home is wherever you work.
possession. Under this exception, you the move. Special rules for students and gov-
satisfy the tax home and the closer • You did not have a tax home outside ernment officials. Disregard the
connection tests for the tax year of the the possession or a closer connection to following days when determining
move if you meet the requirements the United States or a foreign country whether you have a tax home outside
explained next. than to the relevant possession during the possession.
Also, a special exception applies to any part of the first 183 days of the tax Days you were temporarily in the
•
the bona fide residence test for the tax year of the move. United States as a student (see
year you moved from Puerto Rico. • You are not a bona fide resident of Student, later).
Under this exception, you satisfy the the possession in any of the 3 tax years Days you were in the United States
•
bona fide residence test for the part of immediately following the tax year of the serving as an elected representative of
the tax year you moved from Puerto move. the possession, or serving full time as
Rico if you meet the requirements If you do not meet all of the above an elected or appointed official or
discussed later under Year of the move conditions, you do not meet the tax employee of the government of the
from Puerto Rico. If you qualify as a home and closer connection tests under possession (or any of its political
bona fide resident of Puerto Rico for the this exception. Instead, you must meet subdivisions).
part of the tax year before the date you the requirements explained later under
moved from Puerto Rico, you ceased to Tax Home Test and Closer Connection Special rule for seafarers. You will
be a bona fide resident of Puerto Rico in Test. not be considered to have a tax home
outside the possession solely because
the tax year that you moved from Puerto Year of the move from Puerto you are employed on a ship or other
Rico. Rico. You qualify as a bona fide seafaring vessel that is predominantly
Example 2. You are a U.S. citizen resident of Puerto Rico for the part of used in local and international waters.
who moved from Puerto Rico to Florida the tax year before the date you moved For this purpose, a vessel will be
in May 2022 and meet the requirements from Puerto Rico if you meet all of the considered to be predominantly used in
to qualify as a bona fide resident of following requirements. local and international waters if, during
Puerto Rico for the part of the tax year 1. You are a U.S. citizen. the tax year, the total amount of time it is
before the date you moved from Puerto used in international waters and in
Rico. You must file Form 8898 for the 2. You were a bona fide resident of waters within 3 miles of the possession
2022 tax year if your worldwide gross Puerto Rico for at least 2 tax years exceeds the total amount of time it is
income for that year is more than immediately before the tax year of the
used in the territorial waters of the
$75,000. move.
United States, another possession, or
3. In the year of the move, you:
Year of the move to the possession. any foreign country.
You satisfy the tax home and closer a. Ceased to be a bona fide resident
connection tests for the tax year you of Puerto Rico, and Closer Connection Test
moved to the possession if you meet all b. Ceased to have a tax home in You meet the closer connection test if
of the following. Puerto Rico. you do not have a closer connection to
• You were not a bona fide resident of 4. You had a closer connection to the United States or a foreign country
the possession in any of the 3 tax years Puerto Rico than to the United States or than to the U.S. possession.
immediately preceding the tax year of a foreign country during the part of the
the move. tax year before the date on which you You are considered to have a closer
• You did not have a tax home outside ceased to have a tax home in Puerto connection to a possession than to the
the possession or a closer connection to Rico. United States or to a foreign country if
the United States or a foreign country you have maintained more significant
than to the relevant possession during If you do not meet all of the above contacts with the possession(s) than
any part of the final 183 days of the tax requirements, you are not a bona fide with the United States or foreign
year of the move. resident of Puerto Rico in the year of the country. Significant contacts that may
• You are a bona fide resident of the move under this exception. Instead, you be considered include the following.
possession for the 3 tax years must meet the requirements explained • The location of:
immediately following the tax year of the next under Tax Home Test, and
1. Your permanent home;
move. Presence Test, later.

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2. Your family; as a day of presence in the possession. 3. Any day you were temporarily in
3. Your current social, political, If, during a single day, you were the United States as a student (defined
cultural, professional, or religious physically present in two possessions, later).
affiliations; that day is counted as a day of presence 4. Any day you were in the United
in the possession in which you have States serving as an elected
4. Where you conduct your routine your tax home. representative of a possession, or
personal banking activities;
Count the following days as days of serving full time as an elected or
5. The jurisdiction in which you hold presence in the possession for appointed official or employee of the
a driver's license; and purposes of the presence test. Do not government of the possession (or any of
6. Charitable organizations to which count them as days of presence in the its political subdivisions).
you contribute. United States.
Qualified medical treatment. This
• The place of residence you designate 1. Any day you were outside the is medical treatment provided by (or
on forms and documents. possession to receive (or to accompany under the supervision of) a physician for
on a full-time basis a parent, spouse, or an illness, injury, impairment, or
Your connections to the possession child who is receiving) qualified medical physical or mental condition. The
will be compared to the total of your treatment (defined later). For this treatment must involve:
connections with the United States and purpose, the child must be your son, • A period of inpatient care (requiring
foreign countries. Your answers to the daughter, stepchild, foster child, an overnight stay) in a hospital or
questions on Form 8898, Part III, will adopted child, or a child lawfully placed hospice and any period immediately
help establish the jurisdiction to which with you for legal adoption. before or after that inpatient care to the
you have a closer connection.
2. Any day you were outside the extent it is medically necessary, or
possession because you left or were • A temporary period of inpatient care
Presence Test unable to return to the possession (requiring an overnight stay) in a
You meet the presence test for the tax during any 14-day period within which a residential medical care facility for
year if you meet one of the following major disaster occurred in the medically necessary rehabilitation
conditions. possession that was declared a disaster services.
1. You were present in the area by the President. You must keep records of your
possession for at least 183 days during 3. Any day you were outside the qualified medical treatment. For details
the tax year. possession because you left or were on the records you must keep, see Pub.
2. You were present in the unable to return to the possession 570.
possession for at least 549 days during during any period for which a mandatory
the 3-year period that includes the evacuation order was in effect for the Charitable sports event. A
current tax year and the 2 immediately area in the possession where you charitable sports event is one that
preceding tax years. During each year resided. meets the following conditions.
• The main purpose is to benefit a
of the 3-year period, you must also be 4. Any day (up to a total of 30 days) qualified charitable organization.
present in the possession for at least 60 that you are outside the relevant • The entire net proceeds go to that
days. possession and the United States for charitable organization.
3. You were present in the United business or personal travel, but this rule: • Volunteers perform substantially all
States for no more than 90 days during a. Applies only if the number of days the work.
the tax year. you are considered present in the In figuring the days of presence in the
4. You had $3,000 or less of earned relevant possession exceeds the United States, you can exclude only the
income from U.S. sources and were number of days you are considered days on which you actually competed in
present for more days in the possession present in the United States a sports event. You cannot exclude the
than in the United States during the tax (determined without regard to the rule in days on which you were in the United
year. See the instructions for Line 8 this section (4)), and States to practice for the event, to
under Specific Instructions, later, for the b. Does not apply for purposes of perform promotional or other activities
definition of earned income from U.S. calculating the minimum 60 days of related to the event, or to travel between
sources. presence in the relevant possession events.
5. You had no significant connection that is required for the 549-day For a listing of most qualified
(defined later) to the United States presence test (see Presence Test, TIP organizations, go to IRS.gov/
during the tax year. earlier). Charities-Non-Profits.
If you are a nonresident alien, Do not count the following days as
days of presence in the United States Student. To qualify as a student,
! see Special rule for nonresident for purposes of the presence test. you must be, during some part of each
CAUTION aliens, later.
of 5 calendar months during the
1. Any day you were in the United calendar year (not necessarily
Days of presence in the United States for less than 24 hours when you consecutive):
States or U.S. possession. Generally, were traveling between two places
you are treated as being present in the outside the United States. 1. A full-time student at a school that
has a regular teaching staff, course of
United States or in the possession on 2. Any day you were temporarily study, and regularly enrolled body of
any day that you are physically present present in the United States as a students in attendance; or
in that location at any time during the professional athlete to compete in a
day. If, during a single day, you were charitable sports event (defined later). 2. A student taking a full-time,
physically present in the United States on-farm training course given by a
and a possession, that day is counted

Instructions for Form 8898 (Rev. 10-2022) -3-

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school described in (1) above or a state, interest in the property. The rental position that he became a bona fide
county, or local government. property is not considered used for resident of the U.S. Virgin Islands in
personal purposes on any day on which 2022, Mr. Grey checks box a on line 1
Full-time student. A full-time the principal purpose for using the and enters "2022" on the line provided.
student is a person who is enrolled for property is to do repair or maintenance
the number of hours or courses the work. For more information on Line 2
school considers to be full-time determining whether the rental property If you are not a U.S. citizen, you are
attendance. was used for personal purposes, see either a nonresident alien or resident
School. The term “school” includes Pub. 570. alien of the United States. You are
elementary schools, junior and senior Special rule for nonresident aliens. considered a resident alien of the
high schools, colleges, universities, and The presence test does not apply to United States for U.S. tax purposes if
technical, trade, and mechanical nonresident aliens. Instead, nonresident you meet either the green card test or
schools. It does not include on-the-job aliens must meet the substantial the substantial presence test for the
training courses, correspondence presence test discussed in chapter 1 of calendar year (January 1 through
schools, and schools offering courses Pub. 519. In that discussion, substitute December 31). If you do not meet either
only through the Internet. the name of the possession for “United of those tests, you are considered a
Significant connection. You have a States” and “U.S.” wherever they nonresident alien. For more information
significant connection to the United appear. Also, disregard the discussion about these tests, see Pub. 519.
States if: in that chapter about a Closer
• You have a permanent home (defined Connection to a Foreign Country. Line 3a
later) in the United States, Enter your worldwide gross income for
• You are registered to vote in any the tax year entered on line 1. See
political subdivision of the United Specific Instructions Worldwide gross income, earlier.
States, or Unless otherwise specified, answers to
• You have a spouse or child under 18 questions seeking information for a tax Line 3b
whose principal home is in the United year generally refer to the tax year in
States. For this purpose: which you became (or ceased to be) a Average worldwide gross income.
1. A spouse does not include a bona fide resident. Calculate your average worldwide gross
income by adding together the
spouse from whom you are legally worldwide gross income for each year
separated under a decree of divorce or Name and Social Security
of the 3-year period prior to the tax year
separate maintenance; and Number (SSN) entered on line 1. Divide the total by 3.0.
2. The child must be your son, If you file a joint return, enter only the Enter the amount on line 3b.
daughter, stepchild, foster child, name and SSN of the spouse whose
adopted child, or a child lawfully placed information is being reported on Form The amount reported on line 3b
with you for legal adoption. But a child 8898. If both you and your spouse are ! is distinct from the worldwide
does not include: required to file Form 8898, file a CAUTION gross income threshold amount
a. A child who lives in the United separate Form 8898 for each of you. for the year of the move that determines
whether you must file Form 8898. See
States with a custodial parent under a Who Must File, earlier.
custodial decree or multiple support Address Before and After
agreement, or Your Change in Bona Fide
Line 4
b. A child who is in the United Residence Status
If you checked line 1, box a, enter on
States as a student (defined earlier). Enter the address where you lived line 4a the exact date (month/day/year)
Permanent home. A permanent before your bona fide residence status you moved to a possession to establish
home generally includes changed and a different address for bona fide residence. If you checked
accommodations such as a house, an where you lived after your bona fide line 1, box b, enter on line 4b the exact
apartment, or a furnished room that is residence status changed. date (month/day/year) you moved from
available at all times, continuously and Example 3. Mr. Grey, a U.S. citizen, the possession to end bona fide
not solely for short stays. However, if moved from New York to the U.S. Virgin residence.
you or your spouse owns the dwelling Islands. Mr. Grey must enter his New Example 5. Mr. Grey, a U.S. citizen,
unit and rents it to someone else during York address under “Address before moved from New York to the U.S. Virgin
the tax year, the dwelling unit is not your your change in bona fide residence Islands on March 1, 2022. Mr. Grey
permanent home unless, during that tax status” and his U.S. Virgin Islands would enter “03/01/2022” on line 4a.
year, you use some part of it for address under “Address after your
personal purposes for more than the change in bona fide residence status.”
Lines 5 and 6
greater of:
See Days of presence in the United
• 14 days, or Line 1
States or U.S. possession, earlier, for
• 10% of the days the property is Check line 1, box a or b, whichever information on counting days of
rented to others at a fair rental price. applies, and enter the tax year you take presence in the possession.
Generally, the rental property is the position that you became or ceased
considered used for personal purposes to be a bona fide resident of a U.S.
on any day it is not being rented to possession. Line 7
someone else at fair rental value for the See Significant connection, earlier.
entire day or is used by you, a family Example 4. Mr. Grey, a U.S. citizen,
member, or anyone else who has an moved from New York to the U.S. Virgin
Islands on March 1, 2022. To take the

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Line 8 homestead property, the filing or
Earned income is wages, salaries, recordation of a declaration to make the Privacy Act and Paperwork Reduc-
professional fees, and other amounts exemption operative, or an application tion Act Notice. We ask for this
received as compensation for personal for the homestead tax exemption. If information to carry out the Internal
services actually rendered, including the either of the following applies, answer Revenue laws of the United States.
fair market value of all earnings paid in “Yes” on line 22 and indicate the state in Section 937(c) and its regulations
any medium other than cash. which such designation, declaration, require that you give us the information.
Professional fees include all fees recordation, application, or property tax We need it to determine if you are a
received by an individual engaged in a exemption was made. bona fide resident of a U.S. possession.
If you do not provide this information or
professional occupation (such as doctor 1. You made a designation of provide false information, you may be
or lawyer) in the performance of homestead property or otherwise filed subject to penalties. We may disclose
professional activities. See chapter 2 of or recorded a declaration concerning this information to the Department of
Pub. 570 for information to determine if property under a state homestead Justice for civil and criminal litigation,
you have any earned income from U.S. exemption law. and to cities, states, the District of
sources. 2. You applied for or took a Columbia, and U.S. commonwealths
homestead tax exemption from state or and possessions for use in
Line 9 local property taxes. administering their tax laws. We may
See Tax Home Test, earlier. also disclose this information to other
Lines 26 and 27 countries under a tax treaty, to federal
Line 10 See chapter 2 of Pub. 570 for and state agencies to enforce federal
See Closer Connection Test, earlier. information to determine the source of nontax criminal laws, or to federal law
income. enforcement and intelligence agencies
to combat terrorism.
Line 11
See Exception for the Year of the Move, Line 28 You are not required to provide the
earlier. For stocks and bonds, indicate the information requested on a form that is
country of origin of the stock company subject to the Paperwork Reduction Act
Lines 12 and 13 or debtor, and for U.S. companies or unless the form displays a valid OMB
See Permanent home, earlier. If you debtors, the state or possession of control number. Books or records
have more than one home, your incorporation or formation. relating to a form or its instructions must
principal permanent home is ordinarily For example, if you own shares of a be retained as long as their contents
the permanent home you live in most of U.S. publicly traded Delaware may become material in the
the time. corporation, the investment is administration of any Internal Revenue
considered located in the United States law. Generally, tax returns and return
Line 14 (that is, Delaware), even though the information are confidential, as required
Your immediate family means your shares of stock are stored in a safe by Code section 6103.
spouse and minor children. deposit box in a foreign country or The average time and expense
possession. required to complete and file this form
Line 22 will vary depending on individual
Under state law, a homestead Line 32 circumstances. For the estimated
exemption may: A gain is the amount you realize from a averages, see the instructions for your
sale or exchange of property that is income tax return.
1. Protect the owner of real property more than its adjusted basis. See Pub.
from a forced sale or seizure of the 544 for the definitions of amount If you have suggestions for making
property from creditors (for example, in realized and adjusted basis. this form simpler, we would be happy to
a bankruptcy proceeding), or hear from you. See the instructions for
2. Provide a reduction in state or Special source rules apply to your income tax return.
local real property taxes to qualified ! gains from dispositions of
homeowners. CAUTION certain property within 10 years
of becoming a bona fide resident of a
In some states, for individuals to avail U.S. possession. See Special Rules for
themselves of these privileges, state Gains From Dispositions of Certain
laws require a designation of the Property in Pub. 570 for more
information.

Instructions for Form 8898 (Rev. 10-2022) -5-

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