Who it applies to
People who are not US citizens or green card holders, who meet the Substantial Presence Test through time spent in the US over three years, but who were in the US for fewer than 183 days in the current year and keep their tax home and ties in another country.
The four conditions
You can claim the exception only if all four of these apply for the year:
- You were present in the United States for fewer than 183 days during the year.
- You kept a tax home in a foreign country for the entire year.
- You had a closer connection during the year to that foreign country than to the United States.
- You had not taken steps towards lawful permanent resident status, and had no application for it pending.
Qualifying is only half of it
Say you spent 130 days in the US this year and enough in the two previous years to reach 190 weighted days, so you meet the Substantial Presence Test. Your home, job and family are in the UK. You may qualify for the exception — but only if you file Form 8840. Attach it to your US tax return, or if you do not have to file one, send it to the IRS by the normal return deadline. Miss that, and you generally lose the exception unless you can show clear and convincing evidence that you took reasonable steps to comply.
Common questions
Can I use it if I spent 183 days or more in the US this year?
No. The first condition is fewer than 183 days of presence in the current year. At 183 days or more the exception is not available, whatever your ties elsewhere.
What is Form 8840?
The Closer Connection Exception Statement for Aliens. It is how you tell the IRS that you are claiming the exception, and filing it on time is a condition of the exception itself, not a formality.
Does applying for a green card affect it?
Yes. If during the year you applied, or took other steps, to become a lawful permanent resident — or had such an application pending — you cannot claim the closer connection exception.
Does it change my US immigration status?
No. It is a tax rule only. It decides whether you are treated as a US tax resident, not how long you may stay in the country.
Check it at the source
These are the official IRS pages this guide is based on. US tax residency has consequences beyond this exception, so take advice before relying on it.