In 2020, the IRS issued a 60-day relief, which would not be counted for tax purposes. Will you need to calculate those 60 days? The IRS provided guidance about this in Revenue Procedure 2020-20.
In essence, you can exclude up to 60 days from the substantial presence calculation for 2020. However, it’s not any days, it’s limited to the dates you were in the US starting on or after February 1, 2020, and starting on or before April 1, 2020. For example, if you landed in the US on February 15 and stayed until July 15, you could exclude the 60 days from Feb 15 to April 15. If you landed in the US on January 15 and stayed until July 15, you could exclude 60 days. If you landed in the US on April 2 and stayed until July 15, you could not exclude any days.
Here are the rules:
- You have to have been physically present in the US at some point between Feb 1, 2020, and April 1, 2020
- You have to have been physically present in the US for the 60 days you are excluding and they must be consecutive days
- You must have intended to leave the US during the 60 day period but were stuck because of travel disruptions
- The IRS will presume you intended to leave as long as you haven’t taken steps toward becoming a green card holder
- To claim this and exclude up to 60 days, you must file a 2020 US Form 1040-NR and include Form 8843 with it
- Form 8843 is the medical condition form, which they are using for this COVID exception. The attached Rev Proc explains how to complete it
Whether you have 210 days or 150 days depends on the actual dates you were in the United States and whether or not you have taken steps toward getting a green card.
If you have further questions regarding the 60 day relief from the IRS, please contact us.