Form 1040-C: U.S. Departing Alien Income Tax Return (2022)

What Form 1040-C Is For

Form 1040-C serves a very specific purpose: it's the tax document that non-U.S. citizens (aliens) must file before leaving the United States or any of its territories. Think of it as a tax checkpoint—before you can depart, you need to show the IRS that you've paid your U.S. income taxes. The form requires you to report all income you've received (or expect to receive) during the entire tax year up to your departure date and pay the estimated tax on that income. IRS.gov

Importantly, Form 1040-C is not your final tax return for the year. After you leave and the tax year ends, you'll still need to file your regular annual return—either Form 1040 (if you're a resident alien) or Form 1040-NR (if you're a nonresident alien). Any tax you pay with Form 1040-C counts as a credit toward your total tax bill when you file that final return. If your Form 1040-C shows an overpayment, you won't get that refund until you file your year-end return. IRS.gov

The form generates what's commonly called a "sailing permit" or "departure permit"—a certificate of compliance that proves you've met your U.S. tax obligations. You may be asked to present this permit when you leave the country.

When You’d Use Form 1040-C

You must file Form 1040-C if you're an alien planning to leave the United States and you don't qualify for one of the specific exemptions. The IRS requires you to apply for your departure permit no earlier than 30 days before your planned departure but at least two weeks in advance. This timing window is crucial—applying too early or too late can cause problems. IRS.gov

Several categories of people are exempt from filing Form 1040-C, including foreign government representatives with diplomatic passports, certain students and exchange visitors on F, J, M, H-3, or Q visas who have only specific types of U.S. income (such as scholarship funds or authorized employment), business or pleasure visitors staying fewer than 90 days, Canadian or Mexican residents who commute frequently to work in the U.S. with proper tax withholding, and military trainees. IRS.gov

If you qualify for these exemptions, you may be able to file the simpler Form 2063 instead, which doesn't include a tax computation. Form 2063 is available to aliens with no taxable income for the current and preceding year, or resident aliens whose departure won't hinder tax collection.

There is no specific provision for filing an amended Form 1040-C. If you make an error, you should address it on your final annual tax return (Form 1040 or 1040-NR) filed after the year ends, where you can correct any discrepancies and properly account for the tax you paid with Form 1040-C.

Key Rules or Details for 2022

How Residency Status Affects Filing

The fundamental rule is that your residency status determines almost everything about how you file. You're considered a resident alien if you meet either the "green card test" (you're a lawful permanent resident at any time during the year) or the "substantial presence test" (you were physically present in the U.S. for at least 31 days during 2022 and 183 days over a three-year period using a weighted formula). Resident aliens report worldwide income and can generally claim the same deductions and credits as U.S. citizens. IRS.gov

Nonresident aliens face more complex rules. Their income divides into two categories: income "effectively connected" with a U.S. trade or business (taxed at graduated rates like residents), and income "not effectively connected" (typically taxed at a flat 30% rate, though tax treaties may reduce this). Nonresident aliens generally cannot file jointly unless one spouse is a resident alien. IRS.gov

Documentation You Must Bring

You must bring extensive documentation to your IRS appointment, including your passport and alien registration card or visa, copies of tax returns from the past two years, receipts for taxes paid, proof of all income and deductions, documents showing any property sales, scholarship or fellowship grant paperwork if applicable, treaty benefit documentation, your departure date verification (like an airline ticket), and proof of your taxpayer identification number. If you're married and live in a community property state, bring documentation for your spouse as well, even if they don't need a certificate. IRS.gov

Payment and Collection Rules

Payment is typically required at the time of filing. You must pay all tax shown as due on Form 1040-C plus any taxes owed for previous years. However, if you can demonstrate to the IRS that your departure won't jeopardize tax collection and you intend to return to the United States, you may be able to obtain a departure permit without immediate payment, though you'll still need to have filed all required returns and paid past-due taxes. The IRS may also allow you to furnish a bond guaranteeing payment instead. IRS.gov

Step-by-Step (High Level)

Step 1: Determine if you need Form 1040-C.

Review the exemption categories to see if you qualify to skip the form entirely or use the simpler Form 2063 instead. IRS.gov

Step 2: Schedule your appointment.

Call 844-545-5640 between 7 a.m. and 7 p.m. local time to make an appointment at your nearest IRS Taxpayer Assistance Center. Do this at least two weeks before departure but no more than 30 days early. Appointment availability varies by season, so don't wait. IRS.gov

Step 3: Gather all required documents.

Collect your passport, visa or green card, prior tax returns, income statements, receipts for deductions, departure date verification, and identification number documentation. Prepare a complete picture of your U.S. income and tax situation. IRS.gov

Step 4: Complete the form.

Form 1040-C has four parts. Part I establishes whether you're a resident or nonresident alien. Part II lists your dependents. Part III calculates your income and tax, with different sections for different groups (resident aliens use lines 15-22; nonresident aliens with effectively connected income also use lines 15-22; nonresident aliens with non-effectively connected income use lines 23-24). Part IV is the Certificate of Compliance section signed by the IRS. IRS.gov

Step 5: Attend your appointment.

Bring your completed form (original and one copy), all supporting documents, and payment for any taxes due. The IRS will review everything, verify your tax compliance, and if everything is in order, issue your sailing or departure permit immediately by signing the Certificate of Compliance section. IRS.gov

Step 6: Keep your certificate.

The signed certificate is your sailing or departure permit. It may be valid for all departures during the current tax year, though the IRS can revoke it for later departures if they believe tax collection is jeopardized. IRS.gov

Common Mistakes and How to Avoid Them

Mistake 1: Treating Form 1040-C as your final return.

One of the most frequent errors is treating Form 1040-C as a final return. Remember: you must still file Form 1040 or Form 1040-NR after the year ends. Form 1040-C is just a prepayment mechanism and compliance checkpoint, not a substitute for your annual return. IRS.gov

Mistake 2: Missing the timing window.

Many filers miss the critical timing window. Applying too early (more than 30 days before departure) or too late (less than two weeks before) creates problems. Make your appointment well in advance since some offices have limited availability during busy periods. IRS.gov

Mistake 3: Incomplete documentation.

Arriving at your IRS appointment without complete documentation causes delays. Create a comprehensive file with everything on the required documents list. Missing even one piece—like proof of estimated tax payments or evidence of a claimed deduction—can prevent you from getting your permit that day.

Mistake 4: Choosing the wrong form or group.

Nonresident aliens sometimes choose the wrong approach. Filing Form 1040-C when you qualify for the simpler Form 2063 wastes time and effort. Similarly, selecting the wrong group (I, II, or III) leads to incorrect tax calculations. Carefully review the exceptions to see if you even need a certificate, and study the group descriptions to determine which applies to your income sources.

Mistake 5: Incorrectly filing joint returns.

Nonresident alien couples sometimes mistakenly believe they can file jointly. Unless one spouse is a resident alien and both can reasonably expect to qualify for joint filing at year-end, nonresident aliens must file separately. IRS.gov

Mistake 6: Underreporting income.

Some filers underreport income by listing only what they've already received, forgetting that Form 1040-C requires you to include all income reasonably expected to be received during the entire tax year up to your departure date. If you know you'll receive a year-end bonus or other payment before you leave, include it. IRS.gov

Mistake 7: Misclassifying residency status.

Incorrectly determining residency status causes cascading problems throughout the form. Carefully apply the green card test and substantial presence test, and don't overlook exceptions like the closer connection to a foreign country exception or tax treaty residence provisions that might change your status. When in doubt, consult the detailed instructions or seek professional help. IRS.gov

What Happens After You File

If your appointment goes smoothly and you've paid all required taxes, you'll receive your sailing or departure permit immediately—the IRS official signs the Certificate of Compliance section of your Form 1040-C, and you keep your copy. This certificate confirms you've met your U.S. tax obligations based on information available at that time. IRS.gov

The issuance of your certificate is not a final determination of your tax liability. If the IRS later determines you owe more tax, you'll have to pay the additional amount. The certificate simply means that based on what the IRS knew when you departed, your tax situation was in order. IRS.gov

Your departure permit may be valid for multiple departures during the current tax year. However, the IRS can cancel it for any later departure if officials believe tax collection would be jeopardized by that subsequent departure. If you got your permit by furnishing a bond or proving your departure wouldn't hinder collection without paying tax, your permit applies only to that specific departure. IRS.gov

After the tax year ends, you must file your regular annual return (Form 1040 or Form 1040-NR). On that return, you'll report your complete income for the entire year and take a credit for the tax you paid with Form 1040-C. This is when any overpayment can be refunded to you—remember, you cannot get a refund at the time you file Form 1040-C. IRS.gov

If you're a green card holder leaving permanently, you may have additional obligations. Lawful permanent residents who plan to surrender their green card and have held it for at least 8 of the previous 15 taxable years must notify the Department of Homeland Security and file Form 8854 (Initial and Annual Expatriation Information Statement) with the IRS. Some may be subject to an exit tax on unrealized gains. IRS.gov

FAQs

Do I need Form 1040-C if I'm just visiting the United States for a few weeks?

Probably not. If you're visiting for pleasure on a B-2 visa, or for business on a B-1 or combined B-1/B-2 visa and staying fewer than 90 days with no taxable U.S. income, you're exempt from the departure permit requirement. Similarly, if you're just passing through on a C-1 transit visa or entering with a border-crossing ID card for short pleasure or business visits, you don't need Form 1040-C. IRS.gov

I'm an F-1 student leaving after graduation—do I need this form?

It depends on your income. Students on F-1, F-2, J-1, J-2, H-3, H-4, or Q visas are exempt from filing Form 1040-C if their only U.S. income consists of allowances for study expenses, scholarships, authorized employment income, or bank interest not connected to a U.S. business. If you have other types of U.S. income beyond these categories, you'll likely need to file. IRS.gov

Can I file Form 1040-C by mail or online?

No. You must file Form 1040-C in person at an IRS Taxpayer Assistance Center by appointment. This is because obtaining your sailing or departure permit requires IRS review and official signature on your certificate of compliance. Call 844-545-5640 to schedule your appointment. IRS.gov

What if I can't pay all the tax I owe when I file Form 1040-C?

Generally, you must pay all tax due before receiving your departure permit. However, if you can demonstrate to the IRS that you plan to return to the United States and that your departure won't jeopardize tax collection, you may be able to get your permit without immediate payment (though you must still file all required returns and pay past-due taxes). The IRS may also allow you to furnish a bond guaranteeing payment instead of paying certain taxes upfront. These are exceptions rather than the rule, so be prepared to pay. IRS.gov

I'm married to a U.S. citizen—does that change anything?

Possibly. If you're a nonresident alien married to a U.S. citizen or resident alien, you normally cannot file jointly on Form 1040-C. However, if you're a resident alien (meeting either the green card or substantial presence test) and your spouse is also a resident or citizen, you can file jointly on Form 1040-C provided both of you reasonably expect to qualify for joint filing when you file your final return for the year, and your tax years end at the same time. IRS.gov

Do I need a Social Security Number to file Form 1040-C?

You need some form of taxpayer identification number. If you're eligible for a Social Security Number, you should get one by filing Form SS-5 with the Social Security Administration (call 1-800-772-1213). If you're not eligible for an SSN, you must apply for an Individual Taxpayer Identification Number (ITIN) using Form W-7, which typically takes 4–6 weeks to process. Plan accordingly so you have your identification number before your appointment. If another person (like a dependent) needs to be listed on your return and doesn't have an SSN, use their ITIN. IRS.gov

Will I get a refund if Form 1040-C shows I overpaid?

Not immediately. If your Form 1040-C shows an overpayment, you don't pay any tax when you file it, but the IRS cannot issue a refund at the time of departure. You'll receive any refund only after you file your final annual return (Form 1040 or Form 1040-NR) at the end of the tax year, and only if that final return also shows an overpayment. IRS.gov

Sources

This summary is based on IRS Form 1040-C and instructions for tax year 2022. Tax rules change, so always consult the current year's forms and instructions or a tax professional for the most up-to-date guidance.

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