What Form 1040-C Is For
Form 1040-C helps the Internal Revenue Service review your U.S. tax situation before you leave the country. It allows you to report income received or expected through your departure date, including wages, business income, and other taxable income. The form also helps calculate your expected tax liability using the details you provide. The IRS uses this information to determine whether resident aliens or nonresident aliens are required to pay additional income tax before receiving a required departure permit.
When You’d Use Form 1040-C
You must file Form 1040-C when you need a departure permit before leaving the United States. This applies if you earned or will earn U.S.-source income and may owe tax at departure, and most people file 2–30 days before they leave.
You would use Form 1040-C when:
- You are a resident or nonresident alien who must report taxable income up to your departure date.
- You need a sailing permit from a local IRS office before you travel internationally.
- You expect to owe income tax on wages, self-employment work, or other U.S.-source income.
- You leave between January 1 and the annual filing deadline and must bring your prior-year return for review.
- You are not exempt from this requirement, regardless of whether you are a student, exchange visitor, commuter, or short-term traveler.
- You do not qualify for Form 2063, which is used only when no tax liability is expected.
Utilize the IRS Form Help Center to examine any necessary supporting forms for reporting income or deductions before departure.
Key Rules or Details for 2016
Several essential rules apply when completing Form 1040-C for the 2016 tax year. These rules help the Internal Revenue Service confirm your tax obligations before issuing a departure permit. Key points include:
- Form 1040-C is not your final return: You must still file Form 1040 or Form 1040-NR after the end of the year, and any tax paid becomes a credit on your annual return.
- Joint filing is limited: Only resident aliens may file jointly, and only when both spouses expect to qualify at the end of the entire tax year. Nonresident aliens must file separately.
- A valid taxpayer identification number is required: You must provide a Social Security Number or an individual taxpayer identification number. If you need an ITIN, you must apply with Form W-7.
- The IRS may require payment or a bond: When collection appears uncertain, the IRS can request immediate payment of the tax shown or a bond guaranteeing payment before issuing the departure permit.
- Personal exemptions vary: Resident aliens generally follow standard U.S. tax rules, while nonresident aliens may claim limited exemptions, which can be influenced by special tax treaty benefits.
Step-by-Step Filing Process (High Level)
Filing Form 1040-C allows the IRS to review your expected tax before issuing a departure permit. The steps below outline what to do before your scheduled departure date.
- Determine if you must file the form: Confirm whether you are a lawful permanent resident or a nonresident alien who received taxable income and is required to obtain a permit.
- Schedule an IRS office appointment: Contact your local IRS office at least 2–30 days before your travel date. Bring documents that show your plans, such as an airline ticket or details from a transportation company.
- Gather required documents: Bring your passport, alien registration card, prior income tax returns, wage statements showing tax withheld, proof of estimated tax payments, and any records needed to report income received.
- Complete the form: Fill out 1040 C with your taxable income, deductions, and tax details under U.S. tax regulations, including information about income taxes paid and withholding.
- File in person and pay any tax due: Submit the form at the IRS office and pay the indicated tax, unless you qualify for a bond or similar arrangement.
- Receive the Certificate of Compliance: The IRS issues your sailing or departure permit once your information has been reviewed and approved.
- File your final return after year-end: Submit your annual income tax return, such as Form 1040 or Form 1040-NR, and include any tax paid with Form 1040-C as a credit.
Common Mistakes and How to Avoid Them
Travelers completing Form 1040-C often encounter issues that slow down processing or delay their departure permit. The points below highlight common mistakes and straightforward ways to prevent them.
- Treating Form 1040-C as a final return: You must still file a Form 1040 or Form 1040-NR for the whole tax year, so plan to complete your annual income tax return after leaving the United States.
- Missing the filing window: Appointment times at a local IRS office fill quickly. Scheduling early helps you stay within the required 2–30 days before your departure date.
- Arriving without the proper documents: Bringing wage statements, bank records, prior income tax returns, and proof of estimated tax payments helps the IRS review your information without delay.
- Using the wrong form or group classification: Choosing Form 2063 instead of Form 1040-C, or placing income in the incorrect group, leads to an incorrect tax calculation. Reviewing instructions ahead of time reduces errors.
- Applying incorrect joint filing rules: Joint filing rules apply only to certain resident aliens, while nonresident aliens must file separately. Confirming your residency status prevents filing mistakes.
Learn how qualified practitioners support international taxpayers by providing compliant, IRS-recognized representation for complex departure cases.
What Happens After You File
After you file Form 1040-C, the IRS reviews your documents, verifies your tax computation, and checks whether any income tax withholding or extra payment is required before issuing the departure permit. The certificate may cover one or several departures. Even after leaving under U.S. immigration laws, you must file your annual return for the preceding tax year, including any business expenses or allowances covering expenses permitted under U.S. tax laws, primarily if you served a foreign government. Check how Form 2848 allows a representative to communicate with the IRS regarding your departing-alien tax obligations.
FAQs
Do U.S. citizens ever need to file Form 1040-C?
No, Form 1040-C applies only to resident aliens and nonresident aliens. U.S. citizens file regular income tax returns each year, even if they live abroad.
Can the IRS process Form 1040-C quickly if I need to leave for an emergency?
In urgent situations, contact your local IRS office as soon as possible. The IRS may review your information more quickly, but a departure permit is still required before you leave.
Can I get a refund when I submit Form 1040-C?
No, any refund is issued only after you file your annual income tax return. Form 1040-C does not generate refunds at the time of filing.
Does one certificate cover all my departures for the year?
A departure permit may apply to one trip or multiple departures, depending on your situation and whether the IRS believes paying taxes later will be secure.
Do F-1 or J-1 students always need a sailing permit?
Not always; some students qualify for exceptions, especially when their income is limited to approved school-related payments.
