Do I need to file Form 8840 with my 2024 tax return if I applied for green card lottery?

The green card lottery application doesn't automatically disqualify you from using Form 8840, but it could potentially complicate things. Form 8840 is used to claim the Closer Connection Exception to avoid being treated as a US resident for tax purposes under the substantial presence test. Since you were only in the US for 138 days in 2024, you don't meet the substantial presence test threshold (which generally requires 183 days in the current year, or a formula using days over 3 years). So you likely don't need to file Form 8840 at all for 2024. The concern with the green card lottery application is that it could potentially be viewed as demonstrating an intent to reside permanently in the US, which contradicts the "closer connection to a foreign country" claim that Form 8840 is based on. However, simply applying for the lottery is not the same as actively pursuing permanent residence.

After dealing with similar J-1 tax filing confusion last year, I discovered taxr.ai (https://taxr.ai) which was super helpful. I uploaded my visa docs and tax forms there and got a complete analysis of which forms I needed to file - and just as important, which ones I DIDN'T need to waste time on. They actually helped me understand the substantial presence test calculations and whether Form 8840 was necessary in my situation (which involved multiple entries to the US). Their system flagged that I was overthinking my filing requirements and saved me from filing unnecessary paperwork.

Just wanted to update that I tried taxr.ai after seeing the recommendation here. It was really helpful with my visa situation! I uploaded my documents and it immediately explained which forms I needed based on my specific visa type and days in the US. For anyone wondering about the green card lottery situation - taxr.ai specifically addressed this in my analysis. They confirmed that merely applying for the DV lottery doesn't disqualify you from Form 8840, but that I didn't need it anyway based on my day count. They explained everything in plain English which was such a relief. Ended up using their recommended filing service instead of OLT and it worked perfectly for my situation. Saved me from overthinking the whole process!

If you're having trouble figuring out which forms to file, you might also consider calling the IRS directly. Of course, that's easier said than done - I spent HOURS trying to get through on their international taxpayer line last year. I finally discovered Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 15 minutes instead of waiting on hold forever. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c They have a system that basically waits on hold for you and calls when an agent is available. I was super skeptical, but I had a specific question about Form 8843 (similar to your 8840 situation) that I needed clarified, and the agent I spoke to was actually really helpful.

I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I decided to try it anyway because I was desperate to ask about my foreign tax credit situation. It worked EXACTLY as described. I entered my number on their website, and about 20 minutes later got a call connecting me to an actual IRS agent! I didn't have to sit on hold at all. The agent answered my questions about Form 1116 and even helped clarify some treaty questions. For anyone dealing with international tax situations like Form 8840 questions, being able to actually speak with the IRS directly is incredibly valuable. I'd spent weeks getting conflicting advice online, but the agent gave me clear guidance based on my specific situation. Totally worth it!

Just to add some clarity about Form 8840 specifically - it's ONLY needed if: 1) You meet the substantial presence test (which you don't with only 138 days) 2) You want to claim you have a closer connection to another country Since you don't meet the substantial presence test, you're already considered a nonresident alien for tax purposes. The green card lottery application doesn't change that status - it's just expressing interest, not actually changing your current status. File your 1040NR and don't worry about Form 8840. You do, however, need to file Form 8843 if you're on a J visa - that's different from 8840 and is required for all J visa holders regardless of day count.

I went through exactly this last year - J1 visa, applied for green card lottery, and OLT confused me with that same question! Pro tip: OLT isn't great for nonresident returns. Their system kept trying to make me file resident forms. I ended up using Sprintax which is specifically designed for nonresident aliens. A bit more expensive but way less confusing and they file state returns too.