Tax refund

I don't know the e-mail addy, but,IMHO, it would be pointless to send them one. There are still people who haven't gotten returns since '95!! And some that have gotten '04 already! Don't hold your breath! Government is the same everywhere. No rhyme or reason.

Hi Marty! Would you believe I opened my mailbox on Saturday after posting on this board to find my .... VI tax refund for 2004! Tnanks for the info anyway. By the way, are you "Freddie's" dad???

I'm sure that everyone might be aware of this but you can e-file your federal return for free and get your refund direct deposited in your bank account in 2-3 weeks. (Deposits every Friday) State Retun, if applicable may have a small fee. http://www.irs.gov

Aimee,

"pisces girl" asked about the USVI Bureau of Internal Revenue on St. Thomas. You responded with information about filing federal and state returns electronically but it sounds to me like "pisces girl" is a USVI resident and files neither federal nor state returns but rather a USVI return. The USVI does not, to my knowledge, participate in e-filing and any refunds that are due historically take much longer than "2-3 weeks."

Thought you'd like to hear a true story from the horses (so to speak) mouth.

I went to the post office this morning and GUESS WHAT!! My tax refund for 2003, mailed in February, 2004 was there -- $680 plus $40 in interest.

Now if it just clears the BANK.

Seriously, this is why people down here try to owe money rather than be owed.

From what I have read on the irs site it said that you could file even if you lived in USVI and Puerto Rico. The site lists many companies to choose from. Don't remember where I read that on the site but i'll see if I can find it again. I had a job for 5 years preparing taxes and know that you can file several different ways and as we all know, things change every year. I have e-filed the past 5 years and have always got my return in 2-3 weeks. I'll check the site again to see if i can find that info.

Aimee: We don't pay taxes to the IRS, but a local tax bureau- the IRB. While the tax system mirrors the Federal system, the money remains in the VI.

Called the IRS twice to verify my info and spoke to 2 different people and they said there are no restrictions to filing a federal return from anywhere in the would as long as I filed through the IRB in the USVI as well. IRB wants attached copies of a federal return but IRS says it is my option to file separatly from the IRB if I want and I would have to make sure that it wouldnt be filed twice. I would prefer to do it this way as I have had my federal return back to me in a few weeks. As for the "State Return" I know it can take a while, it always does no matter where you live. I also looked at another site on the subject and this is what it said..."The United States Virgin Islands are an unincorporated territory of the United States. Most Federal laws apply in the Virgin Islands, including United States income tax laws. However, Federal income tax laws are administered in the Virgin Islands by the Virgin Islands Bureau of Internal Revenue, not the United States Internal Revenue Service. Ok, now I'm confused.

Hello Aimee,

I don't understand the response you were given from IRS. You said there are no restrictions to filing a federal return from anywhere in the world as long as you filed in the USVI as well. What was the question you asked that this statement answers? What are you calling attached copies of a federal return? Also, why the mention of state tax?

Your last quote is correct. Federal tax laws in the Virgin Islands are administered by the Virgin Islands IRB.

What is it that you are trying to find out about taxes & the VI?

--Islander

Aimee,
While dealing with income taxes in the VI is actually simpler than in the states, it can be confusing because they use the same terms to describe and say different things.
Virgin Islanders do not pay Federal income tax. We pay Virgin Islands income tax. We use the exact same forms as you do when you file Federal income tax. They even say they are for Federal taxes. We do not send our taxes to any location in the states. On STX, we take it and the forms to the Internal Revenue Bureau building located near the hospital. Most folks take the forms and copies so they can be stamped as proof they were submitted.
Since we are not a state, we have no state income tax. All we pay is the Virgin Islands income tax. We cannot pay our taxes or file our forms electronically. Like I tell folks that move here, "Welcome to the 1950's".
Hope this clears up some of your confusion.

Ric

Virgin Islands income tax is the same as paying your local "State Tax" but you also have to file with the federal government as well. Correct? In the USVI is this considered the same thing? If it's not then my question is and was told by the IRS that it was possible to file the two separatly instead of both local and fed through the IRB. Why wouldnt i be able to this?

Islander, Your question was..

"What are you calling attached copies of a federal return?

In some places when filing your local tax they request an attached copy of your federal return and sometimes when you file your federal tax they may request a copy of your local income tax. If the USVI wants you to file their local income taax through the IRB and would probably have to have an attached copy of my federal return with it and then it would be my responsibility to file with the federal government as well.

I have done the homework,or so I thought, on this subject last tax season and looks like I have to look more into this. Are they considering the VI income tax federal? It is my understanding that filing local income tax and Federal tax two separate things to file.

AImee: If you are a resident of the VI, you file your taxes with the local IRB, NOT the IRS. They figure out the amount the same way, but it doesn't go to Washington, it stays here. There is no "state tax." I am not an accountant, and would highly suggest that you speak with one who is versed in the VI Code, but I believe that the IRS was telling you that if you were filing in your home state, but living in the VI you can file at home FROM the VI. If you are a resident of the VI and making money in the VI, they are going to want you to file here.

You are thinking of the VI as a state, which it is not. There IS no "federal" tax here- it is a mirror system however.

I have to tell you that there ARE local taxes, for example: a gross receipts tax which is a % of all receipts if you are in a business, with an exemption for (I believe) the first $5000/month.

Clear as mud??

Aimee,
The reason that two persons at the IRS told you what they did is they both made a mistake. I read a study a few years ago that said the answers given when you call the IRS are wrong about half the time. Worse yet, if they give you bad info, you are still responsible for all penalties and interest due because of their wrong information.

Ric

East Ender

Since I live in Florida and don't have to pay state tax (because of tourism) I only have to file my federal. So, basically I should just look at it the same way. Right? So, if there isn't a "local tax" then who pays for the roads/streets to get paved/fixed and who pays for the "city" workers and law enforcement. What exactly do you mean when you say that VI doesn't have a federal tax and what is the "mirror system"? Everyone has to pay Uncle Sam at some point. When you get a pay check in the USVI what comes out? Social Security and Federal Correct? When you file at the IRB it goes to the federal government right? So, if we are talking about the same, the 1 and only federal government then how is this done?

Ric

The thought of those people giving wrong info has crossed my mind. Deal with it everyday when I check my mail and someone screwed up on a bill and have to stay on the phone all day to fix it. Being put on hold, transfered then back on hold again. Explaining your complaint a bazillion times. The phone co is worst when it comes to competence. So hard these days to get the correct information.

Aimee,

You asked, "who pays for the roads/streets to get paved/fixed and who pays for the "city" workers and law enforcement...What exactly do you mean when you say that VI doesn't have a federal tax and what is the "mirror system"? Everyone has to pay Uncle Sam at some point...When you file at the IRB it goes to the federal government right?"

As several people have already very clearly pointed out in this thread, residents of the Virgin Islands file in the Virgin Islands and the money stays in the Virgin Islands. Virgin Islanders pay Virgin Island taxes in amounts that are equivalent to i.e. "mirror" what they would pay to the Federal Government if they were paying taxes to the IRS. The money collected in the islands is used to pay for public services in the islands like roads and law enforcement.

Hello Aimee,

The roads/streets are paid for using tax/local money and federal money.

The Mirror system basically means that VI Income Tax reflects Federal Income Tax. All the same paperwork, the same laws, the same process in terms of it being removed from pay checks, the same terms... BUT BUT BUT it is filed in the VI and the refunds come from the VI government and the money stays in the VI for use in the VI and there are a few quirks like you should take a photocopy with you when filing so you can have it stamped and have proof that you filed ;). So basically Virgin Islands residents don't pay Uncle Bush, we pay Uncle Turnbull (he is the present governor).

Yes social security, income tax and Medicare come out of pay checks.

Income tax collected here does NOT go to the federal government; it stays HERE in the VI. Thus, the big difference and the reason bonafide Virgin Islands income producing residents only file in the VI.

The next issue to tackle... how do you determine if you are a bonafide resident.

Up to this past tax season the following applied:

"The tax law is that you are a VI resident and file your tax return in the usvi if you lived here the last day of the year. You could be in the states for 11 1/2 months and moved in December and you would file your worldwide income in the vi. If you moved to the states anytime during the year, you're still required to file here. But then you also file in the states and use a form 8689 to prorate the income between the vi and the us. Of course if you didn't have VI income, you wouldn't have to file here." (as quoted from an accountant in STT)

I would suggest calling the IRB office on St. Thomas (340) 774-5865 and asking them your questions, perhaps they can better explain the system to you.

--Islander

Aimee,

Short answer, NO, EVERYONE DOESN'T HAVE TO PAY UNCLE SAM. We don't. We pay no federal tax. All our tax money stays in the VI. Where you are confused is that we pay the VI tax according to the same formula that you pay your federal income tax

We don't get to vote for president and we don't pay federal tax.

Yep! I am the proud poppa of that particular hound! Love 'im to death!!

"The tax law is that you are a VI resident and file your tax return in the usvi if you lived here the last day of the year. You could be in the states for 11 1/2 months and moved in December and you would file your worldwide income in the vi."

OK, I thought I was understanding everything on this thread until this point. Does this mean if you move from the states to the USVI, you then file your entire year's income through the IRB? I had assumed that we'd still file state/federal for our income earned while living in the states, and file with IRB for our USVI income. If it ALL gets filed with the IRB, do you get full refunds of your federal and state withholding? This is puzzling to me.

Islander

I already knew you can't vote for president. Not even absentee. What's up with that?! Doesn't make sense.

Thanks for the info.

Aimee:

"Since I live in Florida and don't have to pay state tax (because of tourism) I only have to file my federal. So, basically I should just look at it the same way. Right? "

Wrong. The USVI is not a state. It is a territory owned by the US. You will find lots of ways that it is not the same as living in the states.

"So, if there isn't a "local tax" then who pays for the roads/streets to get paved/fixed and who pays for the "city" workers and law enforcement."

The territory has about a $600 million dollar budget. The territorial government employees are paid from the money that comes into the IRB. Additionally, the government looks to the federal government (your tax dollars up there in Florida!) for all sorts of grants, loans, etc.

" What exactly do you mean when you say that VI doesn't have a federal tax and what is the "mirror system"?"

When you fill out your taxes, the forms will make you say "Deja vu!" But the money does not go to Washington.

"Everyone has to pay Uncle Sam at some point. When you get a pay check in the USVI what comes out? Social Security and Federal Correct?"

Social security and the same amount as federal- but it doesn't go to Washington, it stays here.

"When you file at the IRB it goes to the federal government right?"

Once more, NO. It stays here.

"So, if we are talking about the same, the 1 and only federal government then how is this done?"

Aimee, is this clearer to you? You probably should spend some time reading the on-line newspapers- www.virginislandsdailynews.com and www.onepaper.com to try to piece together how a territory differs from a state and how the territorial government works.

My brain hurts.

I think the best way, simplest way to describe the VI taxes would be.....drum roll please.....

One Love - One Tax - IRB

All the love stays on the island. What happens on the island, stays on the island!

I got it, I got it, I got it.....(about 22 posts ago)

Alix

Hello Angie,

Sorry for confusing you, wasn't my intention 😉 🙂

I think my best suggestion to you and others is to contact the IRB office and get them to explain the process to you based on your situation. The person you need to speak with is Debra Newton. The number is (340) 774-5865.

--Islander

My husband only worked in the USVI from Aug. 18 - Dec. 31, 2005. I don't have anything to file in the USVI. All of my taxes are from Texas. Is it okay to file our taxes married filing jointly in Texas instead of him filing head of household here & me filing single in Texas?? (We have a daughter)

Thanks for any help...April 15th is really close!!