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Form 8843 AR: What You Should Know
Form 8843 for Exempt Individuals With a Medical Condition If you have a medical condition, such as a heart condition or a depression, you may be able to show that you did not have a substantial presence in the U.S. during the tax year for purposes of the substantial presence test. Example A. Jane b. Of California moved to Cancun in December 2024 with her husband and two children. Jane told the IRS that she will not return to the U.S. in 2024 and received exemption from the Medicare Part B tax on Schedule A. She should file Schedule B or C with her income tax return. Example B. David b. Of New York moved to Cancun in June 2024 with his wife and two children. He disclosed that he will return to the U.S. in 2015, but he will not have income tax liability during the tax year. He is not required to file Form 8843 with income tax return. Furthermore, he would be able to show by showing medical information (such as a letter of an attending physician) that he did not have a substantial presence in the U.S. during the tax year. Example C. An individual moves to Cancun in April 2014, has a condition which prevents him or her from working for four months, but not in the year for the substantial presence test. The individual is entitled to an exemption from the Medicare Part B tax on form Schedule A. For the 2024 tax year, the individual reported earned income of US6,250 and reported a medical-condition exclusion deduction of US1,500. He also declared and had appropriate documentation for each medical-condition exclusion expense. The exemption was used by the individual to pay both qualified and nonqualified medical expenses. Example D. An individual moves to Cancun in April 2014, has an illness and cannot work. Under section 212(g)(1)(A) of the Internal Revenue Code, the individual would be allowed to carry over US1,000 of net self-employment income on the basis of this illness for the tax year, but his or her exemption for the medical-prescription provision only allowed the individual to claim the exclusion for expenses incurred in the year. The individual filed Form 8843 on April 20 and made his declaration in an accompanying statement.
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