Form 1040-C Filing Checklist for Tax Year 2019
Overview and Purpose
Form 1040-C is the U.S. Departing Alien Income Tax Return filed by aliens leaving the United States to certify tax compliance before departure. This form serves as a preliminary income tax return covering the period from January 1, 2019, through the departure date. Unlike standard tax forms, Form 1040-C must be filed in person at an IRS office and cannot be submitted electronically or by mail.
The form creates a Certificate of Compliance, also known as a sailing permit or departure permit, which authorizes departure from the United States. Form 1040-C is not a final income tax return. After the tax year ends, departing aliens must still file their annual return on Form 1040, Form 1040-NR, or a dual-status return reporting all income for the entire year.
Key 2019 Tax Year Context
For tax year 2019, Form 1040-C incorporated several essential provisions. Personal exemption deductions remain suspended under the Tax Cuts and Jobs Act provisions that eliminated personal exemptions for tax years 2018 through 2025. The medical expense deduction threshold remained at 7.5 percent of adjusted gross income for 2019 due to special tax extender legislation. Standard deduction amounts for 2019 reflect adjustments for inflation; however, nonresident aliens generally cannot claim the standard deduction, except under specific treaty provisions.
Ten-Step Filing Process
Step 1: Determine Alien Status Classification
Establish whether you are a resident alien, nonresident alien, or dual-status alien for 2019. You meet the resident alien test if you satisfy either the green card test or the substantial presence test. The green card test is met if you were a lawful permanent resident at any time during 2019. The significant presence test requires physical presence in the United States for at least 31 days during 2019 and 183 days during the three years, including 2019, 2018, and 2017.
For the substantial presence calculation, count all days present in 2019, one-third of the days present in 2018, and one-sixth of the days present in 2017. Certain days are excluded from this count, including days you were an exempt individual, such as a foreign government official; days you intended to leave but could not due to a medical condition; and specific other circumstances.
You may qualify for the closer connection exception if you were present in the United States for fewer than 183 days during 2019, maintained a tax home in a foreign country, and had a closer connection to that foreign country than to the United States. Dual-status aliens are individuals who were nonresident aliens for part of 2019 and resident aliens for another part of the year, typically occurring during the year of arrival or departure.
Step 2: Understand Filing Timing Requirements
File Form 1040-C in person at an IRS office at least two weeks before your planned departure date, but no more than 30 days before departure. This timing window is mandatory and cannot be extended. Filing too close to departure risks processing delays, while filing too early means the certificate will not be issued.
If departing between January 1 and April 15, 2019, you must also file your 2018 tax return (Form 1040 or Form 1040-NR) and pay any taxes due on that prior year return before the IRS will issue your Certificate of Compliance.
Step 3: Gather Required Documentation
Assemble all required documents before your IRS office appointment. Bring your valid passport, along with your alien registration card or visa. Collect copies of all U.S. income tax returns filed for the past two years, or all returns filed during your time in the United States if you have been in the country for less than two years.
Obtain receipts to prove that all income taxes have been paid on prior returns. Gather bank records, canceled checks, and receipts documenting all claimed deductions and business expenses. Collect statements from each employer showing wages paid and federal income tax withheld through your departure date. If self-employed, prepare a statement of income and expenses from January 1, 2019, through your departure date.
Gather documents showing any gains or losses from sales of property, including capital assets and real estate. If claiming scholarship or fellowship grants, compile verification documents including grantor information, source, purpose, application copies, approval documentation, and amounts received. Collect documents proving qualification for any tax treaty benefits you are claiming.
Bring proof of your departure date, such as an airline ticket or travel itinerary. Provide your identity document verifying your taxpayer identification number, either a Social Security card or an IRS Notice CP 565 showing your Individual Taxpayer Identification Number.
Step 4: Complete Taxpayer Information Section
Enter your name and taxpayer identification number exactly as they appear on your Social Security card or ITIN notice. If filing with your spouse, enter both names and identification numbers. Please provide your passport number and Alien Registration Card number. Enter your date of first arrival in the United States and your planned departure date.
Provide your complete foreign address where you will reside after departure. Enter your citizenship or nationality and the country in which you are a tax resident. If you previously departed and returned, enter your date of last arrival in the United States.
Step 5: Complete Part I Status Determination
Check the appropriate box indicating whether you are filing as a resident alien, nonresident alien, or dual-status alien based on your status determination in Step 1. If you own U.S. real property and elect to treat income from that property as effectively connected with a U.S. trade or business, check the appropriate election box.
Answer all questions on page 2 of the form, including whether you furnished Form W-9 during your stay, whether you have any outstanding tax charges, and whether you plan to return to the United States. These questions help the IRS assess your tax situation and compliance history.
Step 6: Report All Income on Schedule A
List all income received or reasonably expected to be received for the entire 2019 tax year through your departure date. Segregate income by type and classification. Resident aliens report all worldwide income in the resident alien column. Nonresident aliens separate income into effectively connected income and fixed, determinable, annual, or periodic income not effectively connected with a U.S. trade or business.
Report wages and salaries from Forms W-2. Enter business income from Schedule C or Schedule C-EZ. Report interest and dividends from Forms 1099-INT and 1099-DIV. Include rental income, royalties, partnership income from Schedule K-1, and any other income sources. Capital gain distributions from mutual funds are reported on the appropriate line regardless of holding period.
Step 7: Complete Schedule B for Capital Transactions
If you are a nonresident alien who sold or exchanged property not effectively connected with a U.S. trade or business, complete Schedule B. List each transaction separately, describing the property, date acquired, date sold, gross sales price, cost or other basis, and resulting gain or loss. These gains are generally taxed at a rate of 30 percent or lower, if applicable.
Step 8: Calculate Itemized Deductions on Schedule C
Determine which deductions you may claim based on your alien status. Resident aliens may claim the same itemized deductions allowed on Schedule A of Form 1040, including medical expenses exceeding 7.5 percent of adjusted gross income, state and local taxes, home mortgage interest, charitable contributions, and other qualifying deductions.
Nonresident aliens with effectively connected income may claim only deductions connected to their U.S. trade or business income and not deducted elsewhere. However, casualty or theft losses reported on Form 4684 and charitable contributions to U.S. organizations may be claimed even if not directly connected to effectively connected income.
Nonresident aliens with only fixed, determinable, annual, or periodic income not effectively connected with a U.S. trade or business cannot claim any deductions against that income. The income is taxed at the gross amount without reduction for expenses.
Step 9: Compute Tax Liability on Schedule D
Calculate your tax using the appropriate section of Schedule D based on your alien status. Resident aliens use lines 1 through 15 for the Group I tax computation. Begin with total income from page 2, line 17. Subtract either your itemized deductions from Schedule C or the standard deduction if not itemizing. Calculate taxable income and apply the 2019 tax rate schedules.
If subject to alternative minimum tax, complete Form 6251 and enter the AMT amount on the designated line. For 2019, the AMT exemption amounts are $71,700 for single and head of household filers, $111,700 for married filing jointly and qualifying widow or widower, and $55,850 for married filing separately. The phaseout thresholds are $510,300 for single filers and the head of household, $1,020,600 for married filing jointly and qualifying widows or widowers, and $510,300 for married filing separately.
Nonresident aliens with effectively connected income use lines 16 through 22 for Group II tax computation, applying the exact graduated tax rate schedules used for resident aliens, but only to effectively connected income. Calculate one exemption amount if you are entitled to claim a personal exemption under your status, though note that personal exemptions were suspended for 2019 under tax reform legislation.
Nonresident aliens with only fixed, determinable, annual, or periodic income not effectively connected with a U.S. trade or business use lines 24 and 25 for Group III tax computation. Multiply your total FDAP income by 30 percent to calculate tax. If entitled to a lower rate under a tax treaty with your home country, attach a statement showing the treaty computation and citing the applicable treaty article.
Step 10: Report Payments and Calculate Amount Due
Enter all federal income tax withheld from wages on the designated line, using amounts from Forms W-2 received during 2019. Report all estimated tax payments made for 2019, including any overpayment from your 2018 return applied to 2019 estimated tax. Enter any other tax payments made during 2019, specifying the type and source.
Total all payments and compare to your calculated tax liability. If your tax liability exceeds your total costs, estimate the amount due and prepare to pay it in full at your IRS office appointment. Payment must be made before the Issuance of the Certificate of Compliance. If your costs exceed your tax liability, the overpayment will be credited on your final annual return filed after the tax year ends.
Special Rules and Limitations
Dependent Claims and Credits
List all dependents for whom you may claim the child tax credit or credit for other dependents. Each dependent must have a Social Security Number or Individual Taxpayer Identification Number. For 2019, personal exemption deductions are not available because they were suspended under tax reform legislation for tax years 2018 through 2025. However, you may still claim qualifying credits if you meet all applicable requirements.
Nonresident aliens face significant restrictions on claiming dependents and credits. Generally, nonresident aliens cannot claim spousal or dependency exemptions unless they are residents of Canada, Mexico, or South Korea, or are U.S. nationals, or qualify under specific tax treaty provisions. Students and business apprentices from India may be eligible for certain benefits under the U.S.-India income tax treaty.
Treaty Benefits and Documentation
If claiming reduced tax rates or exemptions under an income tax treaty, attach a statement showing your treaty computation. Include the applicable treaty article citation and detailed calculation demonstrating how the treaty provision applies to your specific situation. This documentation is required for any departure from the standard U.S. tax treatment, as outlined in treaty provisions.
Standard Deduction Availability
Resident aliens may claim the standard deduction if not itemizing deductions. The standard deduction is zero if your spouse itemizes on a separate return or if you are a dual-status alien who did not elect to be taxed as a resident alien for 2019.
Nonresident aliens generally cannot claim the standard deduction. The exception applies to residents of India who qualify under the U.S.-India income tax treaty and, in particular, other treaty beneficiaries from specific countries under applicable treaty provisions.
Certificate of Compliance Scope
The Certificate of Compliance issued on your Form 1040-C applies to all departures during 2019 unless subsequently revoked. The IRS Area Director may revoke the certificate on any later departure if they believe that the departure would jeopardize tax collection. If you owe tax and departure would jeopardize collection, the certificate applies only to the specific departure for which it was issued, provided that full payment or bond posting has been made.
Exceptions to Filing Requirement
Certain aliens are exempt from the requirement to obtain a Certificate of Compliance before departure. Exceptions include foreign diplomats and employees of international organizations with proper documentation, students and exchange visitors with F, J, M, or Q visas who receive only specified types of income, persons on pleasure trips with B-2 visas, and business visitors with B-1 or combined B-1/B-2 visas staying 90 days or less.
Even if you qualify for an exception, the IRS Area Director may require you to file Form 1040-C if you had taxable income during 2019 through your departure date or in the preceding tax year, and your departure would hinder tax collection.
Final Return Filing Obligation
Remember that Form 1040-C is not your final income tax return for 2019. After December 31, 2019, you must file your annual return on the appropriate form, based on your status as of the last day of the year. File Form 1040 if you were a resident alien on December 31, Form 1040-NR if you were a nonresident alien on December 31, or a dual-status return if you changed status during the year.
Any tax paid with Form 1040-C will be credited against your total tax liability on the annual return. Any overpayment from Form 1040-C will be refunded only after you file your yearly return. Your Certificate of Compliance proves only that you satisfied preliminary tax obligations to permit departure, not that your final annual tax obligation is complete.
Need Help With Your Tax Filing?
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
We offer:
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Call now before filing: (888) 260-9441
Fast transcript pull available
This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
