Form 8840
Closer Connection Exception Statement for Aliens
Who Must File
Aliens who meet the Substantial Presence Test but can demonstrate a closer connection to Canada (or another foreign country) than to the United States.
Deadline
Filed with Form 1040-NR by April 15 or June 15 if no US wages
Penalty
Failure to timely file Form 8840 forfeits the closer connection exception
Step-by-Step Filing Instructions
Confirm you meet the SPT but were present fewer than 183 days in the current year.
Document your closer connection ties to Canada (home, family, bank accounts, drivers license).
Complete Part I with your days of presence in the US for the current and prior two years.
Complete Part II listing your Canadian ties and connections.
Complete Part III with your US ties for comparison.
File the form with the IRS by the deadline; attach to 1040-NR if filing one.
Tips & Best Practices
You must file this form every year you want to claim the exception.
Maintain a detailed day-count log with travel records as backup.
The closer connection exception is unavailable if you had a green card application pending.
Snowbirds should count partial days as full days of presence.
Frequently Asked Questions
Can I use Form 8840 if I spent 183+ days in the US this year?
No. The closer connection exception only applies if you were present fewer than 183 days in the current calendar year, even if the three-year weighted formula triggers the SPT.
What evidence supports a closer connection to Canada?
Your permanent home, family location, personal belongings, Canadian bank accounts, driver license, voter registration, and social/organizational memberships.
Is Form 8840 the same as the treaty tie-breaker?
No. Form 8840 is an IRC-based exception. The treaty tie-breaker (Form 8833) is a separate claim under Article IV of the Canada-US Tax Treaty.
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