Looking for a Irs Publications? Download it for free!

Payment of estimated tax. If you must pay

modeled on the U.S. Internal Revenue Code,

The Virgin Islands

estimated tax, make your payment to the juris-

there are certain differences.

diction where you would file your income tax

An important factor in Virgin Islands taxation is

Requests for advice about matters

return if your tax year were to end on the date

whether, on the last day of the tax year, you are

connected with Samoan taxation

your first payment of estimated tax is due. Gen-

a bona fide resident of the Virgin Islands. If you

should be sent to:

erally, you should make your quarterly pay-

are a temporary worker on the last day of the tax

ments of estimated tax to the jurisdiction where

year, you may or may not be a bona fide resident

Tax Division

you made your first payment of estimated tax.

of the Virgin Islands. You should contact the

Government of American Samoa

However, estimated tax payments to either juris-

Virgin Islands Bureau of Internal Revenue for

Pago Pago, American Samoa 96799

diction will be treated as payments to the juris-

more information.

diction with which you file the tax return.

Residents of American Samoa. If you are a

Resident of the Virgin Islands. If you are a

If you make a joint payment of estimated tax,

U.S. citizen and a resident of American Samoa,

bona fide resident of the Virgin Islands on the

make the payment to the jurisdiction where the

you must report your gross income from world-

last day of the tax year, you must file your tax

spouse who has the greater estimated adjusted

wide sources on your Samoan tax return. If you

return on Form 1040 with the Government of the

gross income would have to pay (if a separate

report non-Samoan source income on your Sa-

Virgin Islands and pay the entire tax due to the

payment were made). For this purpose, income

moan tax return, you can claim a credit against

Virgin Islands. You do not have to file with the

is determined without regard to community prop-

your Samoan tax liability for income taxes paid

IRS for any tax year in which you are a bona fide

erty laws.

on that income to the United States, a foreign

resident of the Virgin Islands on the last day of

country, or another possession.

Early payment of estimated tax. If you

the year, provided you report and pay tax on

If you are a resident of American Samoa for

make your first payment of estimated tax early

your income from all sources to the Virgin Is-

part of the tax year and you then leave American

and you do not send it to the jurisdiction to which

lands and identify the source(s) of the income on

Samoa, you must file a tax return with American

you should have sent it if you had not made it

the return. If you have non-Virgin Islands source

Samoa for the part of the year you were present

early, make all later payments to the jurisdiction

income, you must also file Virgin Islands Form

in American Samoa.

to which the first payment should have been

1040 INFO, Non-Virgin Islands Source Income

Bona fide residents of American Samoa in-

made had you not made it early.

of Virgin Islands Residents, with the Virgin Is-

clude military personnel whose official home of

lands Bureau of Internal Revenue.

Estimated tax form. If your estimated in-

record is American Samoa.

come tax obligation is to the United States, use

You can get Form 1040 INFO by con-

the worksheet in the Form 1040 – ES package to

Nonresidents of American Samoa. If you

tacting:

figure your estimated tax, including self-employ-

are a nonresident of American Samoa, you

ment tax. If you are paying by check or money

should report only income from Samoan

order, use the payment vouchers in the Form

sources on your Samoan tax return. U.S. citi-

Virgin Islands Bureau of Internal Revenue

1040 – ES package. Or, you can make your pay-

zens residing in American Samoa are consid-

9601 Estate Thomas

ments electronically and not have to file any

ered residents of American Samoa for income

Charlotte Amalie

paper forms. See the Form 1040 – ES instruc-

tax purposes.

St. Thomas, U.S. Virgin Islands 00802

tions for information on making payments.

U.S. Government employees. If you are em-

The telephone number is (340)

Information return. If your adjusted gross in-

ployed in American Samoa by either the U.S.

774 – 5865. The fax number is (340)

come from all sources is at least $50,000, your

Government or any of its agencies, or by the

714 – 9336.

gross income consists of at least $5,000 from

Government of American Samoa, you are sub-

sources in the CNMI, and you file a U.S. income

ject to tax by American Samoa on your pay from

tax return, attach Form 5074 to Form 1040.

Example. Mr. and Mrs. Maple left the United

either government. Whether you are subject to

States on June 15, 2003, and arrived in the

tax by American Samoa on your non-Samoan

Note. When the CNMI and the United

Virgin Islands on the same day. They qualified

source income depends on your status as a

States enter into an implementing agreement,

as bona fide residents of the Virgin Islands on

resident or nonresident.

the following rules may apply.

the last day of their tax year, December 31,

Wages and salaries paid by the Govern-

•

2003.

ments of the United States and American Sa-

The CNMI may enact its own laws for tax-

Mr. and Mrs. Maple file Form 1040 with the

moa to U.S. citizens are also subject to U.S.

ing residents of the CNMI as well as for

Government of the Virgin Islands and attach a

federal income tax. These payments do not

taxing income sourced in the CNMI (or

Form 1040 INFO. The Maples report their world-

qualify for the possession exclusion, discussed

income effectively connected with a trade

wide income and pay the entire tax for the year

earlier.

or business in the CNMI) and paid to a

to the Virgin Islands. Even though they lived in

If you report government wages on both your

nonresident.

the United States part of the year, their income

U.S. and Samoan tax returns, you can take a

•

Individuals who are bona fide residents of

tax obligations for that year are completely satis-

credit on your U.S. tax return for income taxes

the CNMI and have income sourced

fied by filing their return with, and paying their

paid or accrued to American Samoa. Figure that

outside the CNMI, Guam, or American Sa-

tax to, the Virgin Islands Bureau of Internal Rev-

credit on Form 1116, and attach that form to

moa may have to file a U.S. tax return.

enue.

your U.S. tax return, Form 1040. Show your

•

wages paid for services performed in American

Individuals who are bona fide residents of

Non-Virgin Islands resident with Virgin Is-

Samoa on line 1 of Form 1116 as income from

the CNMI and have income sourced in any

lands income. If you are not a bona fide resi-

sources in a possession.

of the three possessions may be able to

dent of the Virgin Islands on the last day of your

exclude that income under the possession

tax year, you must file identical tax returns with

Estimated tax. Use the worksheet in the Form

exclusion rules.

the United States and the Virgin Islands if you

1040 – ES package to figure your estimated tax,

have:

including self-employment tax. If you are paying

American Samoa

by check or money order, use the payment

1) Income from sources in the Virgin Islands,

vouchers in the Form 1040 – ES package. Or,

you can make your payments electronically and

American Samoa has its own separate and in-

not have to file any paper forms. See the Form

dependent tax system. Although its tax laws are

2) Income effectively connected with the con-

1040 – ES instructions for information on making

duct of a trade or business in the Virgin

payments.

Islands.

Double taxation. A mutual agreement proce-

File the original return with the United States and

dure exists to settle cases of double taxation

file a copy of the U.S. return (including all attach-

between the United States and American Sa-

ments, forms, and schedules) with the Virgin

moa. See Double Taxation under Filing U.S. Tax

Islands Bureau of Internal Revenue by the due

Returns, earlier.

date for filing Form 1040.

Page 7

Publication 570 - Tax Guide For Individuals With Income From U.s. Possessions - 2003 Page 7

Related Articles

Related forms

Related Categories