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LearnFAQImmigrant & NRI Finance

What is the closer connection exception and can it keep me a nonresident despite many U.S. days?

Answer

Even if you pass the substantial presence test, the IRS closer connection exception can keep you a nonresident for the year if you were in the U.S. fewer than 183 days that year, maintain a tax home in a foreign country, and have a closer connection to that country than to the U.S. You show the connection through things like your permanent home, family, belongings, bank accounts, and driver's license abroad. You claim it by filing Form 8840. It's unavailable if you've applied for or hold a green card. This mainly helps people who spend heavy but under-183-day stretches here. The IRS details the exception and Form 8840 at irs.gov.

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