What is Form 8898?
Form 8898 is a statement required for individuals who move to or from a U.S. possession, such as Puerto Rico, American Samoa, or the U.S. Virgin Islands. This form is essential for the IRS to monitor changes in your tax status. If your worldwide income exceeds $75,000, you must file this form to report your status as a bona fide resident or to indicate that you are no longer one. Not filing can lead to a penalty of $1,000, making it vital for accurate tax records.
What is Form 8898 used for?
Form 8898 is important for individuals living in U.S. possessions. Here’s what it’s used for:
- Notify IRS of Change: Inform the IRS when you become or cease to be a bona fide resident of a U.S. possession.
- Report Income: File if your worldwide gross income exceeds $75,000.
- Comply with Tax Laws: Ensure compliance with U.S. tax laws regarding residence status in U.S. possessions like Puerto Rico, Guam, and the CNMI.
How to fill out Form 8898?
- 1
Check Eligibility: Confirm your worldwide gross income exceeds $75,000 and you meet conditions for changing residence status.
- 2
Fill General Information: Indicate U.S. citizenship or resident alien status, date of moving for bona fide residence, and whether you had a tax home outside the possession.
- 3
Provide Address Information: Enter your current address and, if applicable, your address in the U.S. possession.
- 4
Answer Additional Questions: Respond to whether you had a tax home outside the possession and if you registered to vote during the tax year.
- 5
Complete Form Accurately: Verify all provided information is correct and complete.
- 6
File by Due Date: Ensure to file Form 8898 by the due date for your tax return, including any extensions.
Who is required to fill out Form 8898?
Individuals who become or cease to be a bona fide resident of a U.S. possession, such as American Samoa or Puerto Rico, are responsible for completing Form 8898. This includes U.S. citizens and resident aliens with specific income thresholds.
U.S. citizens and resident aliens with worldwide gross income over $75,000 who have changed their residence status must file Form 8898 to inform the IRS and maintain compliance with tax regulations.
When is Form 8898 not required?
You do not need to file Form 8898 if your income falls below $75,000, or if you haven't claimed to be a bona fide resident of a U.S. possession. Additionally, if you lack a tax home outside the possession and maintain a closer connection to the U.S. or a foreign country than to the possession, filing is unnecessary.
When is Form 8898 due?
The deadline for Form 8898 is the same as the due date for Form 1040, including any extensions. This form must be filed by individuals who start or end their bona fide residence in a U.S. territory, such as Puerto Rico or Guam, if their worldwide gross income exceeds $75,000.
How to get a blank Form 8898?
To get a blank Form 8898, simply visit our website. The form is issued by the Internal Revenue Service (IRS) and is available pre-loaded in our editor for you to fill out. Remember, our platform aids in filling and downloading but not filing forms.
How to sign Form 8898?
To sign Form 8898, check if it allows electronic signatures according to IRS guidelines. If not specified, it's best to provide a handwritten signature to ensure compliance. After filling out the form using PDF Guru, download it for your records. Remember, PDF Guru does not support submission, so complete any required submission process outside the platform. Always check for the latest updates from the IRS regarding signature requirements.
Where to file Form 8898?
To submit Form 8898, mail it to the Philadelphia Campus. Forms sent elsewhere will be redirected to the Low Income Housing Team there.
If you are filing 10 or more information returns, you can also submit electronically via the IRS Digital Mobile Application Format (DMAF).
