Form 1040-C is the US Departing Alien Income Tax Return. A non-citizen files it at an IRS Taxpayer Assistance Center before leaving the United States to report the year's income, pay any tax due and get a certificate of compliance, better known as a sailing or departure permit. It isn't a final return: you still file Form 1040 or 1040-NR after the year ends, and many students and visitors don't need a permit at all.
Everything here comes from the IRS Instructions for Form 1040-C (Rev. January 2026), the form itself (Rev. January 2024) and Form 2063, as of October 2026.
Who needs a sailing permit and who doesn't
The rule is broad: an alien shouldn't leave the United States or any of its territories without a certificate of compliance on Form 1040-C or Form 2063. Then come the exceptions, and they cover a lot of people:
- diplomats with a diplomatic passport, their households and accompanying staff, plus employees of international organizations whose official pay is exempt and who have no other US source income
- students, industrial trainees and exchange visitors on F-1, F-2, H-3, H-4, J-1, J-2 or Q visas whose only US income was study allowances, authorized employment or bank interest that isn't effectively connected with a US business
- M-1 and M-2 students with only authorized employment income or that kind of bank interest
- B-2 tourists, and B-1 or B-1/B-2 business visitors who stay 90 days or less in the tax year
- people in transit, including C-1 visa holders, and those admitted on a border-crossing card
- residents of Canada or Mexico who commute to work in the US and have tax withheld from their wages
- military trainees admitted under the Department of Defense and leaving on official travel orders
There's a catch on the visitor and commuter exceptions. They don't apply if the Area Director believes you had taxable income and your leaving would hinder collecting the tax.
Form 1040-C or the shorter Form 2063
| Your situation | Form to file |
|---|---|
| No taxable income this year or last year, all returns filed | Form 2063, which has no tax computation |
| Resident alien with taxable income, and the IRS agrees your leaving won't hinder collection | Form 2063 |
| Nonresident alien with US taxable income | Form 1040-C |
| The IRS has information you're leaving to avoid tax | Form 1040-C |
| You haven't filed or paid for an earlier year | File and pay that first, then either form |
The timing window people miss
You can't walk in the week you fly. The instructions say to get the permit at least 2 weeks before you plan to leave, and you can't apply earlier than 30 days before your departure date. Every Taxpayer Assistance Center works by appointment only, booked on 844-545-5640, so book well before that window opens.
If you've been working in the US, the IRS suggests using an office near your job, though an office near your departure point also works. File an original and one copy of Form 1040-C for the year you plan to leave.
What to bring to the appointment
- A valid passport with your green card or visa.
- Copies of your US income tax returns for the past 2 years, or for the shorter period you've been in the US.
- Receipts for the tax paid on those returns.
- Records that prove the deductions, business expenses and dependents you claimed.
- A statement from each employer this year showing wages paid and tax withheld, or an income and expense statement if you're self-employed.
- Proof of estimated tax payments for last year and this year.
- Papers showing gains or losses on any property you sold.
- Scholarship or fellowship grant documents, and anything that supports a tax treaty benefit.
- Proof of your departure date, such as an airline ticket, and proof of your taxpayer identification number.
If you're married and live in a community property state, bring the same papers for your spouse even if your spouse doesn't need a certificate.
How the tax works on the form
Part I sorts you into one of three groups: Group I resident aliens, Group II nonresidents with income effectively connected with a US trade or business, and Group III nonresidents with income that isn't. Groups I and II figure tax with the normal rate schedules. Group III income is taxed at 30% on line 25, unless you attach a statement showing a lower figure. Nonresidents work through the Form 1040-NR instructions to complete it; residents use the Form 1040 instructions.
Line 13 asks whether you received, sold or exchanged any digital asset during the year, which covers crypto, stablecoins and NFTs.
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Paying, bonds and refunds
- You generally pay the tax shown on Form 1040-C when you file it, along with any tax due for past years.
- If you've paid every prior year, you can post a bond that equals the tax due plus interest instead of paying.
- If you show the IRS you intend to return and your departure doesn't put collection at risk, you can get the permit without paying the tax shown, as long as every return due has been filed.
- An overpayment on Form 1040-C is only refunded when, and to the extent, your final return shows one.
Why it isn't your last US return
This is the part people forget once they've landed. The certificate isn't a final decision on your tax, and the IRS can still assess more. After the year ends you file Form 1040 or 1040-SR if you were a citizen or resident on the last day of the year, Form 1040-NR if you weren't, or a dual-status return if you changed status mid-year. The tax paid with Form 1040-C counts as a credit on that final return.
The verdict
Check the exceptions first: plenty of students on F or J visas and short-stay visitors don't need a permit at all. If you do need one, book the TAC appointment early, walk in between 2 weeks and 30 days before your flight with the full paper trail, and diarise the final return for next year. The permit gets you out the door; it doesn't close your US tax file.
Frequently asked questions
What is Form 1040-C?
It's the US Departing Alien Income Tax Return, used to report income and pay expected tax so you can get a sailing or departure permit before leaving.
When should I file Form 1040-C?
At least 2 weeks before you leave, and no earlier than 30 days before your planned departure date.
Do F-1 students need a sailing permit?
Not if their only US income was study allowances, authorized employment or bank interest that isn't effectively connected with a US business.
Is Form 1040-C my final tax return?
No. You must still file Form 1040, 1040-SR or 1040-NR after the tax year ends, and the tax paid with Form 1040-C is credited there.
Where do I file Form 1040-C?
At a local IRS Taxpayer Assistance Center, by appointment, before you leave the United States.
