Reporting Your Move with IRS Form 8898
Overview
Form 8898 is required by the IRS when a U.S. citizen or resident alien changes their tax home to or from Puerto Rico and meets the $75,000 gross income threshold for that tax year. Filing this form ensures accurate classification as a bona fide resident and determines federal vs. Puerto Rico income tax obligations.
When Is Form 8898 Required?
You must file Form 8898 if:
You became or ceased to be a bona fide resident of Puerto Rico.
Your worldwide gross income for the year is $75,000 or more.
You are a U.S. citizen or resident alien.
This typically occurs in the year of a qualifying move, whether from the mainland U.S. to Puerto Rico or vice versa.
Why It Matters
Filing Form 8898:
Establishes the official year of move for IRS records.
Helps prevent incorrect federal income tax assessments on Puerto Rico-source income.
Is required even if no federal tax is ultimately due.
Failure to file may result in a $1,000 penalty and complications with future filings.
Timing and Deadlines
Form 8898 must be filed with your federal return for the year of the move. It is typically due by April 15, but deadlines may shift depending on tax extensions.
Tips for Accurate Filing
Maintain clear records of entry and exit dates.
Confirm bona fide residency using the 183-day rule and additional IRS criteria.
Keep detailed income records by source and location.
For additional compliance, review our Puerto Rico Individual Income Tax and Act 60 Tax Exemption pages.
Need Help with Form 8898?
We help individuals determine whether they must file Form 8898 and prepare filings with accuracy and clarity. Whether you’re moving for Act 60, retirement, or work, we can help.