Health Care, Address & Banking

You night want to look into what's called a 'residential mail forwarding service'. They're used by a large number of full-time RVers. You may be able to find more information on them in RV living related forums.

I'm not sure if it would be acceptable to your insurance company, but you could check.

I still have a stateside address, but my insurance company treats any claims here as 'out of network'.

I'm looking at changing my health insurance over to United Health Care at my next enrollment period, as they are one of a small number of health insurance companies fully licensed in the VI and any doctor's visit here would be treated as 'in network' as long as the doctor is in their plan.

I can't answer all your questions, but, I'd be very careful about how you're going to manage having your primary residence in the USVI while attempting to keep your mainland healthcare active. They'll eventually discover that you don't live there anymore. Additionally, just because you have healthcare insurance on the mainland somewhere, doesn't mean that local providers will accept it here. There are very, very few insurance providers here.

Regarding your driver's licenses, there was a time when you could get away with having one here and one on the mainland, but, the BMV is all connected now. You'll have to get a VI license within a certain time frame and they will take your mainland license and advise the issuing authority that you have one here now. 

Posted by: @alibfloyd

Hi - need some guidance...  My husband and I moved to VI's and are working on getting all our ducks in a row with changing our life to everything VI.  Splitting our time between stateside and USVI but we won't own property at this time stateside and spend more time in the VI's.

We both have stateside remote jobs however we already know my husbands healthcare will not work if we change our address to VI.  I have however confirmed that my company can support healthcare if I change my address (they said it would be fine, but haven't actually done that yet so don't know how confident I am in that).  Does anyone out there have a successful experience with remote stateside job, VI address + healthcare through their stateside company.  We plan to get all our healthcare in the states - of course minus emergency. I'm just nervous of changing everything then learn I was led the wrong way on healthcare so I want to hear if others successfully changed to VI address but kept their stateside job and health insurance.

Second question, we want to keep stateside banking - will there be any challenges with this if our address is changed to VI.

Last, if we do this and change to a VI drivers license, what do we do if we want to keep a car or drive stateside?

Okay, just curious what every one's experience is? Thanks so much!

As long as your employer is in the states, your tax relationship will continue with the IRS since you won't qualify as a bona fide citizen of the USVI EVEN if you own real estate in the VI. You will continue to pay state/federal taxes where your company is located - because that is your tax home and closer connection (ie where you get paid). This will be quite confusing for your company's HR department so tell them as little as is necessary.

According to the IRS: An individual is generally considered a bona fide resident of a U.S. territory if he or she (1) is physically present in the territory for 183 days during the taxable year, (2) does not have a tax home outside the territory during the tax year, AND (3) does not have a closer connection to the U.S. or a foreign country.

I too work for a stateside employer though it is quite large. For tax and employment purposes I use a friend's home address in FL and my VI PO Box as a mailing address. 

Talk to your employer about adding your husband to your health insurance plan. If not right away, open enrollment is coming up soon. 

I have no issues with health insurance coverage - all of my providers in the states and in the VI are included in my plan - but again I work for a very large enterprise with worldwide reach. PPOs are more accommodating than HMOs so choose the PPO if you have the option. Nationwide coverage that includes the VI, PR and FL is optimal. 

You'll also need to purchase med evac insurance - AERO MD uses planes out of the VI. Trust me on this one. Figure out where you'll want to be in a worst case scenario. A med evac flight to SJU will cost over $50K FYI.

I have a bank account in the states and also a local one in STX. With online banking, it's easy to do this now. Most VI banks are headquartered outside the territory anyway. Changing your residence address can be a challenge since some banks and, particularly American Express, want to send your mail to your residence. This can be tricky but there are work arounds.

We also have VI drivers licenses and a car in the states. VI licenses are real IDs and work in the states in theory without any issues now. However, the first license they give you isn't the real ID - you have to go back to the BMV in a month to pick up your REAL license.

Park your stateside car and let your insurance company know where it is. They'll get the bills to you.

Some states will not allow you to register/title a vehicle there without a driver's license for that state and will require an address in that state.  A result after years of people registering in a state with cheaper insurance but living and using the vehicle in a more expensive state.

Fortunately with the many part time residents the VI does not require a VI DL to register a vehicle in the VI.

Posted by: @gators_mom

(2) does not have a tax home outside the territory during the tax year, AND (3) does not have a closer connection to the U.S. or a foreign country.

First, I’m curious about the definition of Tax Home?  Does this mean I get a W2 from a stateside employer?  I’m recently retired but still have a part time advisory agreement with my company that will result in my having a W2 from my stateside employer for both 2021 and 2022, so I assume my Tax Home is stateside for those years but from 2023 onwards my income will be a combination of Social Security and passive income (simply stated, I’ll be living off my retirement savings) so I won’t have a stateside employer or W2 income.  My question is then, from 2023 onwards would I pass the Tax Home test for USVI residency?

Second, I’ve never understood the “closer connection to the US” language.  We will (my wife and I) be living on STX more than the required 183 days but will still have a home stateside and our children all live stateside, but practically speaking STX will be our primary residence.  I’m just not clear on the measurable criteria for this residency test.

Any advice or clarification would be appreciated. 

Read these publications - they tell all about tax consequences of living in the VI. 

Tax home is about EARNED income. Closer connection is about where you live and if you maintain a permanent residence of any sort in the states.

2020 Publication 570 (irs.gov)

Form 8898 (Rev. October 2020) (irs.gov)

About Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession | Internal Revenue Service (irs.gov)

You have to meet all three tests to qualify as a bona fide resident of the VI.

(1) is physically present in the territory for 183 days during the taxable year, (2) does not have a tax home outside the territory during the tax year, AND (3) does not have a closer connection to the U.S. or a foreign country.

Posted by: @alibfloyd

Hi - need some guidance...  My husband and I moved to VI's and are working on getting all our ducks in a row with changing our life to everything VI.  Splitting our time between stateside and USVI but we won't own property at this time stateside and spend more time in the VI's.

We both have stateside remote jobs however we already know my husbands healthcare will not work if we change our address to VI.  I have however confirmed that my company can support healthcare if I change my address (they said it would be fine, but haven't actually done that yet so don't know how confident I am in that).  Does anyone out there have a successful experience with remote stateside job, VI address + healthcare through their stateside company.  We plan to get all our healthcare in the states - of course minus emergency. I'm just nervous of changing everything then learn I was led the wrong way on healthcare so I want to hear if others successfully changed to VI address but kept their stateside job and health insurance.

Second question, we want to keep stateside banking - will there be any challenges with this if our address is changed to VI.

Last, if we do this and change to a VI drivers license, what do we do if we want to keep a car or drive stateside?

Okay, just curious what every one's experience is? Thanks so much!

i use bank of america for most things. i do have a local bank for just in case things 

I tried to keep our healthcare and it didn't work at all. It covered prescriptions but I paid $1200 for my kids to get vaccinated to start school b/c they covered nothing Now we have local health insurance. 

I also have Bank of America and I haven't had a problem with that. I am a preferred member or something so no ATM fees. I just re-ordered personal checks with my STT address which was fine EXCEPT they wouldn't mail them here so had to have to have them forwarded. Also took some extra time transferring between my Merrill account bc the IP address being here sets off some alarms but all fine.

I have a local bank for business stuff. 

All these annoying issues. This is exactly what cryptocurrency will solve. Boardless. Fast. There will be no need for mainstream banks in the near future. Watch this space. 

I use Etrade, no atm charges (they will refund any fee imposed), easy to use online and usually great service, but with covid that hasn't been the best lately.

Posted by: @stxdreaming1

All these annoying issues. This is exactly what cryptocurrency will solve. Boardless. Fast. There will be no need for mainstream banks in the near future. Watch this space. 

I’m not sure it will happen as smoothly or quickly as you think.  Governments will not give up control of currency without a significant fight as Central Bank currency control is fundamental to the management of any national economy.  Expect significant regulation and oversight as the market for cryptocurrency continues to expand going forward.  If cryptocurrency is made more cumbersome or expensive for merchants and/or consumers the growth will stall.  The early adopters are mostly geeks, speculators and anyone wanting to take advantage of the fact that transactions can’t be traced, so it’s convenient for limited number of applications.  A few people will get rich and many more will get their clocks cleaned as few understand this complex cyber market that no government stands behind, which again is the basis of the stability behind any fiat currency and the basic reason for the historical volatility of today’s cryptocurrencies.

@jaldeborgh 

Wrong on so many levels. Let me explain;

WRONG - Governments will not give up control of currency without a significant fight as Central Bank currency control is fundamental to the management of any national economy.

I invite you to google the many articles on Christine Lagarde, and you will see what the European Central Bank is doing with crypto and CBDC (Central Bank Digital Currencies).

CORRECT - Expect significant regulation and oversight as the market for cryptocurrency continues to expand going forward.

Regulation is a good thing. And hopefully, the SEC will bring clarity to the marketplace very soon. Google SEC Vs Ripple as this case is exactly about that, regulations. 

WRONG -If cryptocurrency is made more cumbersome or expensive for merchants and/or consumers the growth will stall.

This is so incorrect. If you are a retail business and accept Mastercard, Amex, or Visa, you are paying 3% plus per transaction. If you are sending funds internationally using the SWIFT network, it takes days, and your financial institution will charge you $30 plus per transaction. Depending on the crypto, it can take seconds and cost 001c per transaction. The other day I had to send money using a same-day domestic wire transfer with BoA. Cost me $35 for the privilege.

WRONG -The early adopters are mostly geeks, speculators and anyone wanting to take advantage of the fact that transactions can’t be traced, so it’s convenient for limited number of applications.

Firstly, the big exchanges in the US (and globally) require a KYC in order to buy and sell on their platforms. Therefore, anyone using crypto legally can't hide their transactions. In the US, the exchanges report all transactions to the IRS as a standard procedure. Obviously, there are hard wallets available whereby you can move crypto to them, and yes, those transactions are untraceable, but then you could argue the same about money laundering with physical cash. Saying geeks, are early adopters is a bit harsh and simply not true.

WRONG WRONG WRONG -A few people will get rich and many more will get their clocks cleaned as few understand this complex cyber market that no government stands behind, which again is the basis of the stability behind any fiat currency and the basic reason for the historical volatility of today’s cryptocurrencies.

People need to do their research and learn before they get involved. Yes, you can get burned, but that's when you get involved with something you do not understand; what do you expect? To say no govnerment stands behind crypto is simply incorrect. Again, when you have time, google "CBDC's" along with the country; You will see that they are all investing time and effort to get involved in the crypto market. China has just launched its digital Yen, France is working with the European Central Bank to produce a digital Euro, the UK gov has put a task force together to explore a digital pound. The future is here.

Go crypto go!!  

I have a modest crypto investment. Even if they just go up to a $1 down the road it will be a very good return on a small investment. I won’t be rich but more money my wife can spend lol. 

Like you said lots of countries governments are doing crypto. It’s a growing, legit, and here to stay. 

Posted by: @stxdreaming1

@jaldeborgh 

Wrong on so many levels. Let me explain;

WRONG - Governments will not give up control of currency without a significant fight as Central Bank currency control is fundamental to the management of any national economy.

I invite you to google the many articles on Christine Lagarde, and you will see what the European Central Bank is doing with crypto and CBDC (Central Bank Digital Currencies).

CORRECT - Expect significant regulation and oversight as the market for cryptocurrency continues to expand going forward.

Regulation is a good thing. And hopefully, the SEC will bring clarity to the marketplace very soon. Google SEC Vs Ripple as this case is exactly about that, regulations. 

WRONG -If cryptocurrency is made more cumbersome or expensive for merchants and/or consumers the growth will stall.

This is so incorrect. If you are a retail business and accept Mastercard, Amex, or Visa, you are paying 3% plus per transaction. If you are sending funds internationally using the SWIFT network, it takes days, and your financial institution will charge you $30 plus per transaction. Depending on the crypto, it can take seconds and cost 001c per transaction. The other day I had to send money using a same-day domestic wire transfer with BoA. Cost me $35 for the privilege.

WRONG -The early adopters are mostly geeks, speculators and anyone wanting to take advantage of the fact that transactions can’t be traced, so it’s convenient for limited number of applications.

Firstly, the big exchanges in the US (and globally) require a KYC in order to buy and sell on their platforms. Therefore, anyone using crypto legally can't hide their transactions. In the US, the exchanges report all transactions to the IRS as a standard procedure. Obviously, there are hard wallets available whereby you can move crypto to them, and yes, those transactions are untraceable, but then you could argue the same about money laundering with physical cash. Saying geeks, are early adopters is a bit harsh and simply not true.

WRONG WRONG WRONG -A few people will get rich and many more will get their clocks cleaned as few understand this complex cyber market that no government stands behind, which again is the basis of the stability behind any fiat currency and the basic reason for the historical volatility of today’s cryptocurrencies.

People need to do their research and learn before they get involved. Yes, you can get burned, but that's when you get involved with something you do not understand; what do you expect? To say no govnerment stands behind crypto is simply incorrect. Again, when you have time, google "CBDC's" along with the country; You will see that they are all investing time and effort to get involved in the crypto market. China has just launched its digital Yen, France is working with the European Central Bank to produce a digital Euro, the UK gov has put a task force together to explore a digital pound. The future is here.

 

Anyone transacting in cryptocurrency must obviously be holding cryptocurrency which is extremely volatile and can loose or gain in amounts that dwarf any transaction fees.  No average consumer will hold currency that can fluctuate by 10%, 20% or 30% in a few days or a week, the risk is too high.  I’ve yet to meet anyone holding cryptocurrency for anything other than speculation.  My neighbor just bought a $5M vacation home from profits he made on cryptocurrency speculation, he’s one of the winners.  He bought the house with dollars, after cashing out of the cryptocurrency.

There’s no entity (central bank) attempting to provide stability to the cryptocurrency so speculators are therefore incentivized to try and manipulate the market for personal profit. Billions are being spent on computers to mine the currency, it’s the Wild West.  No one knows who the winners will be.

The US government, with the stroke of a pen, could outlaw the use of cryptocurrency.  The banks and credit card companies are a very powerful lobbing force and I’m sure they have no use for cryptocurrencies, unless they can control and profit from them.  They’ve spent countless dollars on the status quo and don’t want any disruptive new currency interfering with their profits.

Nothing is free, regulation will drive costs up, it always does.  The current minimal transaction fees can’t support the expensive infrastructure needed to run a stable global regulated system.  At the moment speculators are willing to risk that investment because they believe that the potential windfall profits are still there.  When the potential for windfall profits goes away, so will the investment and investors.  Again, nothing is free.

You won’t find me taking a pay check in cryptocurrency or keeping my checking account or investment accounts in cryptocurrency until it’s pegged to something that is regulated, managed, stable with considerable oversight.  When we get there I’m guessing the transaction costs are the same or higher the the status quo.  Like most consumers I’m risk averse when it comes to my hard earned money. 

@jaldeborgh Again, wrong on most points. That said, you are entitled to your opinion and I respect that. 

You had me at…..$5 million dollar house. 

Ha Ha. 

Posted by: @knowlesstak

You had me at…..$5 million dollar house. 

Ha Ha. 

It was $5.05M to be exact, he also plans to level the house and build a new larger one.  So he definitely is one of the winners.  Near as I can tell he works remotely and only for himself.