Income tax question...

No state tax, no sales tax. Other then that you pay the same ones the difference is the money stays in the vi instead of going back stateside. Your first year you will probably (may have changed now) pay both stateside and locally as your tax year will probably be split. The years you do pay make sure you keep a hold of them when you go back. Heard stories of the irs stateside thinking you dodge paying taxes while here. This probably made no sense, I'm sure someelse will explain it better but it gives you a start.

If you are a resident of the VI you pay your taxes using exactly the same IRS forms as a stateside US taxpayer uses. The your tax return and money are sent directly by you to the VI treasury. The VI gets all the money. You also are taxed for FICA and Medicare at standard rates.

This is what confuses people. You really are paying taxes to the territory using federal forms, but you really aren't paying federal taxes. Most people for simplicity say the VI doesn't have territory/state taxes. It would be more correct to say we don't pay Federal taxes just territory taxes at Federal rates.

No sales tax in the VI and property taxes were very low here when the Feds controlled our tax rate. Now that the VI has wrested control of local property taxes from the Feds no telling what might happen.

Jim

PS What is even stranger is the US Federal government sends the VI money for schools, roads, etc. pays the Federal employees based in the Territory and the taxpayers down here haven't contributed one dime in income taxes. Life is good when you live in paradise.

"PS What is even stranger is the US Federal government sends the VI money for schools, roads, etc. pays the Federal employees based in the Territory and the taxpayers down here haven't contributed one dime in income taxes. Life is good when you live in paradise."

USVI locals pay taxes to the USVI equivalent to U.S. Federal taxes and those funds largely pay for maintaining USVI infrastructure. Monies the Federal government spends here are no different than monies the Federal government spends in states; there's nothing strange about the Federal government contributing to states and territories -- it's commonplace throughout the U.S. And despite the fact that we can't vote for president and don't have a voting representative in Congress, we'll continue to send Virgin Islanders to fight in wars for the commander-in-chief that statesiders elected. Life is good when you live in the states and have a voice through your vote.

The people going to war voluntarily joined the military. They weren't drafted.

Actually it is a bit different....States are required to send money to Washington, we do not.....after Washington skims a bit off the top, it is then sent back to the states.....and territories....

Those in the military weren't drafted but it was also never disclosed to them that should they choose to serve in the military they may be ordered by a member of one of America's oil families to wage (and in some cases die) in a war promulgated to increase the wealth of oil families.

As far as the military goes, its still all volunteer. The USVI is not required to send anybody anywhere to fight anything.
Lets not forget these great Americans/ Virgin Islanders, do that for many reasons, patriotism is among the biggest reasons, also for opportunities and some for the adventure of it.
We may not have a vote in federal issues, but we do enjoy the protection of the United States Armed Forces.

To say its not disclosed to you that you may have to go to war when you join the military is the equivalent of saying it was not disclosed to you that you would have drive a car for your driving test!!!!!!!!
What are you talking about!!!!!!!!!!!1

The ultimate nanny state.

As I've always said push for statehood if you want representation or move back to the mainland.

You're right it is commonplace for the states to get monies back from the Feds. But your money stays in the VI's and doesn't hit the US Treasury. California sends a lot more to the feds and doesn't get it's fair share back either.

dnt: I think this is the first time I have ever disagreed with you!! (GASP!)

The IRB taxes stay here, yes, but additionally the territory applies for federal grants for more money. When you live in the states, your federal income tax goes into that pot (of federal money, grants etc) PLUS your state, county, city, tax you for a variety of services- hospitals, roads, schools.

Since only the electoral college can elect the president, the territory would need to apply for statehood.

And while there is no *visible* sales tax, the gross receipts tax IS an invisible sales tax. And a very unfair one, as it is added on at the wholesale and retail levels, so we are doubly taxed for items we buy.

promo: Thanks for sending us your tax money! 😉

The Virgin Islands: Where your tax money goes for vacation.

Dnt, thank god I wasn't drinking anything or I would have laughed with the milk slopping out of my nose.

Did you make that up or are you reading the Arianna Huffington blog.

Jay, she was joking but left off the smiley

Not a problem at all EE. Enjoy it. I figure it's cheaper than having the VI's become a state.

"To say its not disclosed to you that you may have to go to war when you join the military is the equivalent of saying it was not disclosed to you that you would have drive a car for your driving test!!!!!!!!
What are you talking about!!!!!!!!!!!"

Those serving in the military are willing to fight in a just war, whenever such a war may come to pass, but it's obvious that the U.S. military is currently being used to further the fiscal interests of an infinitesimally small number of Americans, the wealthiest U.S. oil families, not the interests of Americans generally.

Channeling George Soros.....is that you????

Oops, yep, just put on my tinfoil hat.........and am getting closer to you on this one.

You left off the smiley again!!!

"You're right it is commonplace for the states to get monies back from the Feds. But your money stays in the VI's and doesn't hit the US Treasury. California sends a lot more to the feds and doesn't get it's fair share back either."

Ah, California. I got a bill from the CA Franchise Tax Board last week asking for $20,000 in back taxes for 2005. I last lived in CA in 1988. Doesn't matter, they tell me. Whenever you set foot in CA and earn money there, even if just attending a meeting, the money earned while in CA creates a tax liability owed to CA, regardless of where one resides. Apparently everyone who does any business while visiting the state of CA owes CA taxes on the money they earn while in the state, and the example provided to me was visiting professional athletes who owe CA taxes for every game they play in state.

Actually you are right for the first time on this thread. Athletes are responsible for the money they earn while playing in ANY STATE or CANADA.

On your own situation we would have to learn more since it doesn't make sense. Unless of course you play for the San Francisco '49ers or the Los Angeles Dodgers.

"Actually you are right for the first time on this thread."

I'm sure you're right and I'm wrong. I certainly don't have a PhD in political science or general's stars on my jacket. However, even though there are a number of things one gives up when moving from the states to the USVI, thankfully the right to one's opinion about U.S. military actions is not one of them.

I think the U.S. is in Iraq because it serves the interests of U.S. oil. I think the money we're squandering in Iraq will never stabilize the area but will seriously destabilize our economy. I think it's wrong for Americans to be sent to war to protect the financial interests of the few when they signed up to protect the liberty interests of the many. I think sending the U.S. military to fight a war whose only purpose is to increase the wealth of the wealthiest is unjust.

I originally responded to a remark by Jim Dandy. I disagreed with the career welfare recipient (USVI) and long suffering welfare funder (Federal taxpayers) perspective to which Jim Dandy alluded. I think territories are in an unfavorable position relative to states, fiscally and otherwise, but I choose to live here and accept the positives and the negatives. And I very much appreciate the freedom to hold my wrong perspective.

Wow!

Thanks for the info everyone!

As always interesting and informational.

In regards to the USVI fighting George W's ugly war. Jay states that "theusvi is not required to send anybody, anywhere to fight anything".

If I'm not mistaken, USVI national guard units were ordered to participate in this national disgrace. My guess is that the USVI National Guard is made up of men and women from these very islands.

So, if that is correct, young people (and some not so young) were activated and sent off in support roles by the president that they can't vote for.

And they joined the National Guard voluntarily.

Let's just say ti out loud. This is the craziest president and the most arrogant, corrupt, administration to hold office in my lifetime. And that is certainly saying a lot!!!

This C student and military service avoider has, in his ignorance, brought the country to the edge of a major war. And he STILL thinks he's done the right thing. Unbelievable. If he really was acting on principal, after afghanistan, he would have gone after Saudi Arabia -- the nurturer of the 9/11 terrorists. But no, he tackles the other world class crazy who embarassed his dad and had, at that time, NOTHING to do with the terrorism of 9/11.

Wow, it felt good to get that off my chest. What was the question again??