The Closer Connections Exception: (International) Student Edition

Previously I discussed the Substantial Presence Test (here) and the (General) Closer Connections Exception (here). Today, we’ll discuss a variation of the Closer Connections Exception which is specific to international students.

So why do foreign students have their own closer connections exception? Because they wouldn’t otherwise be able to meet the general requirements of (1) spending less than 183 days in the U.S. for the year in question (as they are presumably full-time, year round students) and (2) having a tax home outside the U.S. (since they presumably wouldn’t be working abroad while simultaneously attending school in the U.S.) As a result, the closer connections exception for foreign students does away with those two general requirements, replacing them with the following instead:

(1) the student does not intend to reside permanently in the U.S.;

(2) The student has substantially complied with the immigration laws and requirements relating to their student nonimmigrant status;

(3) the student has not taken any steps to change their nonimmigrant status in the U.S. towards becoming a lawful permanent resident of the U.S., and

(4) the student has a closer connection to a foreign country than to the U.S. as evidenced by the factors listed in Treas. Reg. 301.7701(b) -2(d)(1), or factors found under the general test.

Important Limitations: This exception is limited to students and cannot be used for teachers, researchers, etc.

To claim the exception, must file Form 8843, Statement for Exempt Individuals and Individuals with a Medical Condition.