Form 5074 (2017)
• You file a U.S. income tax return.
• Taxable refunds, credits, or offsets of local Guam or CNMI income
taxes only include nonmirror code income taxes.
• You report adjusted gross income (AGI) of $50,000 or more.
• Alimony received from a person who is a bona fide resident of Guam
• At least $5,000 of the gross income on your return is from either Guam
or the CNMI is sourced in that specific territory.
or CNMI sources.
• Except as provided in regulations, income earned after December 31,
Do not use this form if you were a bona fide resident of
2004, that is from sources within the United States or effectively
Guam or the CNMI during the entire tax year, or were
connected with the conduct of a trade or business in the United States
considered a bona fide resident of Guam or the CNMI for
is not income from Guam or the CNMI.
the entire tax year under the special rules for the year
• The source of gains, profits, or income from the sale or disposition of
of a move (see chapter 1 of Pub. 570, Tax Guide for Individuals With
real property (and any interest in real property) is generally where the
Income From U.S. Possessions).
real property is located.
Joint returns. If you file jointly and only one spouse is a bona fide
Personal property. The source of income from the sale of
resident of Guam or the CNMI for the entire tax year, the resident status
nondepreciable personal property is generally the seller’s residence. For
for both spouses and subsequent tax treatment is determined by the
example, if you are a bona fide resident of Guam or the CNMI, gain from
spouse with the higher AGI (disregarding community property laws). File
the sale or disposition of personal property is generally from sources
Form 5074 only if the spouse with the higher AGI is not a bona fide
within Guam or the CNMI. Income from the sale of inventory is generally
resident of Guam or the CNMI for the entire tax year.
sourced where the title to the property passes. See section 865 for
Where to file. If you are not enclosing a check or money order, file your
Form 1040 (including Form 5074) with the Department of the Treasury,
Special rules may apply to bona fide residents of U.S.
Internal Revenue Service Center, Austin, TX 73301-0215 USA.
territories who have gain from dispositions of certain
If you are including a check or money order, file your return with the
investment property within the 10-year period beginning
Internal Revenue Service, P.O. Box 1303, Charlotte, NC 28201-1303 USA.
when they became a bona fide resident. For details, see
Additional information. Pub. 570 has more information and an example
Special Rules for Gains From Dispositions of Certain Property, in
of how to complete Form 5074. To get Pub. 570, see How To Get Tax
chapter 2 of Pub. 570, Regulations section 1.937-2(f)(1), and Examples 1
Help in the Instructions for Form 1040.
and 2 of section 1.937-2(k).
Part I—Income From Guam or the CNMI Reported on
Part II—Adjusted Gross Income From Guam or the
CNMI Reported on Form 1040
Source of income. The rules for determining the source of income are
Lines 21 through 23. If you had Guam or CNMI source self-
explained in sections 861 through 865 and section 937, Regulations
employment income, figure the amount to enter on each line by (1)
section 1.937-2, and chapter 2 of Pub. 570. Some general rules are:
dividing your Guam or CNMI source self-employment income by your
• The source of wages, salaries, or tips is generally where the services
total (worldwide) self-employment income and (2) multiplying the total
are performed. If you worked both in and outside Guam or the CNMI,
amount of each deduction that applies to you by the result in (1).
include on line 1 only wages, salaries, or tips earned while you were in
Line 24. Enter the amount of penalty on early withdrawals from savings
Guam or the CNMI. However, certain income earned while temporarily
accounts in banks or branches of U.S. banks located in Guam or the
performing services in Guam or the CNMI will not be considered income
CNMI. The Form 1099-INT or Form 1099-OID you received will show the
from Guam or the CNMI.
amount of any penalty you were charged.
De minimis exception. This is an exception to the general rule for
Line 25. Enter the total of your and your spouse’s IRA deductions
determining the source of income earned in Guam or the CNMI.
attributable to Guam or CNMI compensation or earned income. Figure
Generally, income from Guam or the CNMI does not include
the amount to report on line 25 by (1) dividing your Guam or CNMI
compensation for services performed in Guam or the CNMI if during
compensation or earned income by your total (worldwide) compensation
or earned income and (2) multiplying the amount of your IRA deduction
• Were a U.S. citizen or resident;
by the result in (1). Figure the amount of your spouse’s IRA deduction
the same way.
• Were not a bona fide resident of Guam or the CNMI;
Line 28. Include in the total on line 28 the amount of any other
• Were not employed by or under contract with an individual,
deductions included on Form 1040, line 36, that are attributable to your
partnership, or corporation that is engaged in a trade or business in
Guam or CNMI income. On the dotted line next to line 28, enter the
Guam or the CNMI;
amount of each deduction attributable to your Guam or CNMI income
• Temporarily performed services in Guam or the CNMI for 90 days or
and identify it as you did on Form 1040, line 36. If you or your spouse
had an Archer Medical Savings Account deduction on Form 1040, line
• Earned $3,000 or less from such services.
36, figure the amount to report on line 28 the same way you would an
Military spouses. If you are the civilian spouse of a member of the
IRA deduction (see Line 25 above).
U.S. Armed Forces, work in Guam or the CNMI, and retain a residence
Penalty for Failure To Furnish Information
or domicile in one of the 50 states or the District of Columbia under the
Military Spouses Residency Relief Act (MSRRA), your wages, salaries,
If you became or ceased to be a bona fide resident of a U.S. territory,
tips, and self-employment income will not be considered income from
you may be required to file Form 8898, Statement for Individuals Who
Guam or the CNMI. Under MSRRA, the military spouse must be in
Begin or End Bona Fide Residence in a U.S. Possession. If you fail to
Guam or the CNMI solely to be with his/her servicemember spouse who
provide the required information, you may have to pay a $1,000 penalty
is serving in compliance with military orders. For details on MSRRA, see
for each failure unless you can show the failure was due to reasonable
cause and not willful neglect. This penalty is in addition to any criminal
• The source of interest income is generally where the payer is located.
penalty provided by law. For details, see the Instructions for Form 8898.
For example, Guam or CNMI source income includes interest from a
certificate of deposit issued by a bank or branch of a U.S. bank in Guam
or the CNMI.
• Generally, dividends are sourced where the paying corporation is
created or organized.